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Category: Announcements

INTENT DICTATES CHARACTER OF REAL ESTATE GAIN

INTENT DICTATES CHARACTER OF REAL ESTATE GAIN

Check out the decision in Fargo and King (TC Memo 2015-96) for a refresher on the rules regarding whether real estate gains are capital versus ordinary, depending on whether the property was “held” for development, as opposed to an investment purpose. The courts typically analyze various factors when this issue arises, in evaluating whether a taxpayer “held” property primarily for sale to customers in the ordinary course of business, including: ~The purpose for which the property was originally acquired ~The…

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DON’T FORGET THE TAXPAYER ADVOCATE

DON’T FORGET THE TAXPAYER ADVOCATE

The Taxpayer Advocate Service is an independent organization within IRS, whose role is to protect taxpayers’ rights and ensure that all taxpayers are treated fairly. Among other things, the Advocate: ~Helps individuals, businesses and exempt organizations in a myriad of ways ~Helps in cases where the taxpayer’s IRS problem is causing a financial difficulty or, most commonly, in cases where IRS procedure has simply bogged down and the taxpayer is trapped in a morass of red tape with no resolution…

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USEFUL IRS INFO FOR THOSE IN THE MILITARY

USEFUL IRS INFO FOR THOSE IN THE MILITARY

In recognition of National Military Appreciation Month, IRS has recently updated its “Armed Forces Tax Guide” (Publication 3) which contains good information and important reminders of some tax benefits unique to members of the military, including: ~Combat pay – partly or totally tax free ~Moving expenses – deduction available for eligible items ~Tax return due date – service members stationed abroad have until June 15 to file, and those in a combat zone have even longer – typically up to…

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IRS WARNING ABOUT FAKE CHARITIES

IRS WARNING ABOUT FAKE CHARITIES

Included on IRS’ famous annual “Dirty Dozen” tax scams list for 2015 is a warning about groups masquerading as charitable organizations to attract donations from unsuspecting contributors. IRS goes on to advise potential charitable donors to: ~Be wary of charities with names that are similar to familiar or nationally known organizations. Check the IRS list (www.irs.gov) for inclusion in the listing of legitimate charities. ~Not reveal personal financial information, such as your Social Security number to a charitable solicitor. ~Not…

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DEADLINE LOOMS FOR SMALL RETIREMENT PLANS

DEADLINE LOOMS FOR SMALL RETIREMENT PLANS

Don’t forget that certain small businesses which failed to timely file required retirement plan returns in recent years have only until June 2, 2015 to take advantage of special penalty relief offered last year via Revenue Procedure 2014-32. The relief offered under this Revenue Procedure is only available to the plan administrator or plan sponsor of (1) certain small business (owner-spouse) plans, and plans of business partnerships, and (2) certain foreign plans.