Taxpayers who owe more taxes than they can pay may seek an Offer in Compromise (OIC) from the IRS to settle the debt for less. If the IRS finds that a taxpayer is able to pay in full, the OIC will likely be rejected. In one case, a warehouse worker who was estranged from his [...]
To help defray the sky-high cost of gas, taxpayers who use their vehicles for business saw the standard mileage rate rise on July 1, from 58.5 cents to 62.5 cents. But you could lose that tax benefit if you neglect to keep good records as you go. In one case, a consultant and his wife’s [...]
Do you know the signs of financial distress in a business? Financial statements tell only part of the story. Investors, lenders and other stakeholders who know how to identify red flags of impending problems can protect their own financial interests. Potential red flags include high employee turnover, inefficient working capital management and major changes in [...]
Taxpayers can hire their children to work in their businesses but the children must hold legitimate jobs. In one case, a consultant and his wife’s estate weren’t entitled to business deductions for payments to “assistants,” who were the couple’s children and a grandchild. The payments were for alleged reimbursement or compensation for services provided in [...]
There are several tax incentives for owning residential real estate. For example, eligible taxpayers can claim home mortgage interest deductions and property tax deductions. If eligible, they can also exclude from gross income up to $250,000 ($500,000 for married couples filing jointly) of gain realized on the sale of a principal residence. The Joint Committee [...]
