An individual’s loan to a company that went belly-up pays a tax dividend. The loss from the bad loan is a deductible business bad debt. The taxpayer, who owned a real estate mortgage company, also made loans from his personal assets. This included a $100,000 loan he made to a high-end furniture manufacturer. When the […]
debt, deductibles, Northside Tax Service, TallyTaxMan, Tax Court
Failing to make timely repayments of a plan loan leads to taxable income for a 51-year-old retirement plan participant. He took a loan from his account and agreed to pay it back via payroll deductions. He started making the payments, but then temporarily stopped for seven months before resuming paying off the loan. The plan […]
1099-R, IRA, Northside Tax Service, TallyTaxMan, Tax Court
State payments to individuals caring for disabled relatives are tax-free. They qualify as difficulty-of-care payments under a 2014 IRS Notice (2014-7). State Medicaid programs pay for the cost of a caregiver’s home-based services provided to disabled individuals who would otherwise require institutionalized care. It is the view of IRS that these Medicaid payments are excluded […]
Foster care, IRS, Northside Tax Service, TallyTaxMan, Tax Court
A self-employed man can deduct mortgage interest paid on unused realty, the Tax Court decides. He bought land with the intent of building an office on it. He borrowed money to finance the purchase and paid interest on the loan. But before construction began, his business started to have financial problems, and he had to […]
northsde tax service, self-employment, TallyTaxMan, Tax Court
Business owners: Make sure your employment taxes are actually paid. You can’t just rely on the word of an employee or accountant that it’s done. Take this case in which IRS slapped penalties on a firm for failing to pay such taxes. A manager was responsible for paying the company’s payroll tax, but he didn’t […]
CPA, Federal payroll tax, IRS, Payroll, S-Owners, Small Business Tax, Tally Tax Man, Tax CourtThe new cap on state and local tax (SALT) deductions faces a court test. Starting with 2018 returns, individual filers can deduct on Schedule A state and local income taxes or sales taxes, plus property taxes, up to a $10,000 limit. Conn., Md., N.J. and N.Y…all high-tax states…are suing the U.S. government. They challenge the […]
deductibles, deductions, Income Tax Planning, Income Tax Preparation, Internal Revenue Service, IRS, IRS requirements, New Tax Laws, Northside Tax Service, TallyTaxMan, Tax, tax changes, Tax Court, Tax DeductionsA firm that owns an apartment building gets bad news from the Tax Court. The property manager is an employee and not an independent contractor. His work on-site at the complex consists of leasing available units, collecting rents, doing maintenance and many other duties. He requires little to no supervision in his daily work. However, […]
casual labor, employers, Federal payroll tax, independent contractor, Northside Tax Service, Payroll, payroll tax, Payroll Taxes, Small Business Tax, Tallahassee Tax Service, TallyTaxMan, Tax Court