Capital contributions did not restore or increase shareholders’ tax bases in loans to S corporations Nathel, (2008) 131 TC No. 17 Mike Habib, EA The Tax Court has held that taxpayers’ capital contributions to S corporations did not constitute income to the S corporations and that the contributions did not…
IRS reminds taxpayers to make use of recent tax law changes before December 31st [Fact Sheet 2008-26]: Mike Habib, EA With the end of tax year 2008 just weeks away, IRS has issued a number of tax tips that taxpayers should consider. Among the tips are the following–first-time homebuyers (those…
IRS tips for year-end charitable contributions IR 2008-138 Mike Habib, EA IRS reminds individuals and businesses making contributions to charity that they should keep in mind several important tax law provisions that have taken effect in recent years. One provision offers older owners of individual retirement arrangements (IRAs) a different…
A roadmap to disaster area tax relief in 2008 legislation Mike Habib, EA The 2008 calendar year has seen more than the usual share of natural disasters in the U.S., and legislation designed to provide tax relief to the victims. By and large, legislative relief has been granted on an…
IRS boosts 2008 housing cost allowances for those working abroad in high-cost areas Notice 2008-107, 2008-50 IRB Mike Habib, EA A new Notice effectively increases the maximum housing cost exclusion for U.S. citizens and residents working abroad in specified high-cost locations. The increases are based on geographic differences in foreign…
Fact sheet explains wage compensation of S corporation officers Fact Sheet 2008-25 Mike Habib, EA A recently released IRS fact sheet provides useful information for S corporations and their owners concerning the proper tax treatment when corporate officers perform services for the entity. Specifically, it explains the proper employment tax…
Senators question Treasury’s liberalization of bank NOL rules Mike Habib, EA Senator Chuck Grassley (R-IA), ranking member of the Committee on Finance, and Senator Charles E. Schumer (D-NY), have questioned a controversial IRS Notice that changed the existing rules to allow banks to deduct the built-in losses of other banks…
Farmer’s Tax Guide highlights administrative and tax law changes for 2008 IRS Publication 225 Mike Habib, EA IRS recently released Publication 225, Farmer’s Tax Guide, for use in preparing 2008 returns on its web site. It highlights several administrative and tax law changes for 2008 and 2009. What’s new for…
Roundup of recent employment tax rulings Mike Habib, EA There have been several recent rulings issued in the employment tax area. Here is a summary: Joint employment. A federal district court has ruled that a property management company was the joint employer of leasing consultants who worked out of the…
Gambling winnings or losses? Mike Habib, EA As a US taxpayer, you can deduct gambling losses only if you itemize your deductions on form 1040. You can claim your gambling losses as a miscellaneous deduction on IRS Form 1040, Schedule A. However, the amount of losses you deduct can not…