Category: Taxation

What is “Bad Debt”

Lending money is a part of life and is also a normal practice for many types of businesses. But with lending money comes the real risk that it will never be repaid. The IRS allows for certain types of debt to be written off, classified as “bad debt.” However, the IRS also closely scrutinizes bad  … Read more

Tax Implications of Rental Property

Rental property can be a sound investment as it can bring in a consistent, predictable flow of income. Unfortunately, it can also make taxpayers targets of IRS scrutiny. In 2008, the Government Accounting Office estimated that over half of tax filers who own rental property misreported their income and losses on their tax returns. The  … Read more

Understanding Capital Gains and Losses

What is a Capital Asset? The IRS considers capital assets to encompass almost all of the property you own for personal use or as an investment. This includes stocks, securities, houses, cars, and jewelry. However, under the tax code, Section 1221, capital assets exclude the following property: Stock or property in a taxpayer’s trade that  … Read more

Rules on Charitable Contributions

Many of us have causes we believe in. For some, we support causes based on deeply personal experiences that have shaped us for better or worse. Others have identified with causes that fit with their belief systems or interests. There are a number of ways that people show their support: with their time, their voices,  … Read more

Depreciating Your Commercial Real Estate

  What is Depreciation? When you purchase property for business purposes, such as buildings, equipment, machinery, vehicles, and furniture, the IRS does not consider these purchases as deductible expenses. Instead, because of the nature of the property, it is considered an asset that is subject to depreciation. This means that the property is expected to  … Read more

Claiming Medical Expenses

  Medical care is expensive. Even if you have the most generous health insurance policy in America, you are going to pay a lot of money out of pocket if you have an unforeseen medical emergency, or an event that requires intensive medical treatment or hospitalization. This is why it is important to understand if  … Read more

The Taxpayer Bill of Rights

  For many, paying taxes can seem tedious, confusing, and unfair. This is especially salient when you see your reduced paycheck a, big tax bill, or read about how the government lost track of tens of billions of dollars in cash in Afghanistan. In addition, there are many people who are dissatisfied with the IRS  … Read more

Tax Rules Benefitting Veterans

  Our active and veteran military members honor our Country with their service. Unfortunately, this service is often without reward. Many veterans struggle following their service, with mental health and physical challenges, as well as problems establishing a career. To honor military service and to help alleviate their financial burdens, the IRS and states offer  … Read more

Properly Reporting Entertaining Expenses

  Entertaining expenses is an often misunderstood, and over-reported, tax deduction that can lead to unintended IRS scrutiny of a taxpayer’s return. That does not mean that a taxpayer should not take this deduction, but that the taxpayer needs to be aware of the IRS rules regarding these expenses. The IRS describes entertaining expenses as  … Read more