Tax News

  • Millionaire Donkey Breeder Can Deduct Losses, Tax Court Says

    The Tax Court recently held that a couple of millionaires could deduct the losses incurred in their miniature donkey breeding business because it was entered into for profit. This case can serve as a valuable roadmap to survive an IRS audit for those with a loss-generating activity. Huff and his wife lived on a farm […]

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  • IRS Increases Mileage Rate to 62.5 Cents Effective 7/1/22

    In recognition of recent gasoline price increases, the optional standard mileage rate for the final six months of 2022 has been increased from 58.5 cents to 62.5 cents. Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes. For the final six […]

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  • A RARE TAXPAYER VICTORY IN THE U.S. SUPREME COURT

    If a taxpayer files a case with a trial court one day late, is he automatically denied his day in court? As is the case with so many tax issues, it depends. If it is a jurisdictional deadline, then the deadline is immutable, and the court will not acquire jurisdiction to hear the case. If, […]

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  • IRS Computer Generated Notices – No End in Sight Anytime Soon

    The IRS has received requests from 200 members of Congress and numerous practitioners to stop automated notices. However, in a statement on its website on January 27, 2022, the IRS said it “will be very difficult…due to technology limitations.” “With an outdated technological ecosystem, these are changes that cannot be made as efficiently as they […]

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  • Are Home Owner’s Associations Exempt from Income Tax?

    Section 501(c)(3) of the Internal Revenue Code (IRC) sets forth requirements that an organization must meet in order to be exempt from income tax. While the IRS recognizes more than 30 types of nonprofit organizations, only certain organizations qualify as 501(c)(3) organizations to which tax-deductible contributions can be made. In general, organizations that may be […]

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  • New Tax Provisions in the Infrastructure Act Passed November 5, 2021

    H.R. 3684, known as the Infrastructure Investment and Jobs Act, passed the House of Representatives just before midnight Friday, November 5, 2021 and is headed to President Joe Biden’s desk to be signed into law. The new law was approved by the House in a 228–206 vote after passing the Senate by a 69–30 vote […]

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  • Employers Get Tax Credits for Allowing Employees Time Off to Get Vaccines Starting April 1, 2021

    The American Rescue Plan Act of 2021 (the “ARP”) offers self-employed individuals and employers with fewer than 500 employees a new tax credit for paid time off to get vaccinated or to accompany another beginning on April 1, 2021 through September 30, 2021. An Eligible Employer may claim a fully refundable tax credit equal to […]

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  • 2021 FEDERAL TAX FILING DEADLINES EXTENDED

    IRS reminded taxpayers (IR 2021-114) that the deadline for filing most individual income tax returns this year, except as noted below, was May 17, 2021. It encouraged taxpayers to file electronically for faster and more accurate processing of their federal returns. It also reminded them that they can request an extension of time to file, […]

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  • DEDUCTING 2021 FREEZE DAMAGE ON YOUR 2020 TAX RETURN

    The February 13–17, 2021 North American winter storm, unofficially referred to as Winter Storm Uri, was a major winter and ice storm that had widespread impacts across the United States, Northern Mexico, and parts of Canada. Over 9.9 million people in Texas alone suffered blackouts, little or no water, and burst pipes due to Winter […]

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  • IRS CHANGES HOW UNEMPLOYMENT INCOME IS TAXED

    The IRS has changed the tax treatment of the New Exclusion of up to $10,200 of Unemployment Compensation guidance. Its original guidance included unemployment income in adjusted gross income when calculating the $150,000 modified adjusted gross income (MAGI) limitation. On March 23, 2021, the IRS updated its instructions for the unemployment compensation exclusion worksheet and […]

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