One of the basic truths for any taxpayer wanting to claim a deduction for business use of the home is, the office area must be used 100% for business purposes. And 100% business use means 100%. But is that really always true?
Taxation of emotional distress payments can be tricky. In general, the settlement money is taxable … but not always.
Does the 5th Amendment Protect You During an Audit? In one word: NO.
The U.S. Tax Court says a vacant house can sometimes still qualify as a rental property.
A taxpayer recently won in Tax Court in a case involving the home office deduction for an employee.
I used to work in radio. I was the news director at KNOD radio station in Harlan, over in the western part of Iowa. I plan to start writing more about my past and my experiences and how it ties into my professional life. But those are different blog posts for different days. Today I […]
Iowa doesn’t have a tax court. Instead, taxpayers either have to go through an administrative appeals process, or appeal through district court. As Joe Kristan at the Tax Update Blog says: Once the Department asserts an adjustment against a taxpayer, there is no independent internal review. The Iowa administrative appeals process is perceived as a […]
The Tax Court last week ruled against celebrity psychiatrist Dr. Charles Sophy and his domestic partner Bruce Voss in a case regarding the allowable amount of deduction for mortgage interest. Tax law allows a deduction for mortgage interest on up to $1.1 million of debt on up to two homes. In this case, Sophy and […]
It’s the heat of tax season, plus Jason is working on finishing a manuscript for an upcoming continuing education seminar he is presenting at. Rather than make you wait for new posts, Jason has dug into the archives to pull out some of his personal favorites from days gone by. This story comes from October, […]
The IRS lost a Tax Court case on Tuesday involving the IRS disallowing a deduction for more than $49,000 in medical expenses paid to caregivers of a deceased 92-year-old woman who had been suffering from dementia. The woman, Lillian Baral, died in August of 2008. The IRS audit involved her 2007 tax return. The problems started […]