Tax Articles

Animal lovers win court case

If you provide care for stray or feral animals in your home for an IRS-approved charity, you may be able to take a tax deduction for your out-of-pocket expenses. A recent U.S. Tax Court judge ruled that a taxpayer who fostered feral and stray cats in her home could deduct amounts she spent for food, veterinarian bills, litter, and other unreimbursed expenses incurred to help the charity in its mission. An important requirement for such expenses

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Are unemployment benefits taxable?

Unemployment compensation can provide a welcome buffer while you’re transitioning to a new job. But with the help comes a tax effect, because the benefits provided under federal or state laws are usually includable in your income in the year you receive them. As a result, depending on the amount of unemployment benefits you expect to receive, you may want to complete Form W-4V, Voluntary Withholding Request, to have federal income tax withheld from your benefits.

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Make the right pricing decision

In business, making pricing decisions is always tough – and even more so when the economy is slow and sales are slipping. It’s tempting to cut prices hoping to generate higher sales volume. But sometimes that just produces lower margins on a low volume. What do you do if you’re being squeezed by cost increases? Can you increase prices in a slow economy? How do you respond if your customers complain? Can you justify holding prices

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Tax Court ruling holds CEO could deduct legal fees incurred in defending against suit by disgruntled investor

In Ramig, TC Memo 2011-147, the Tax Court has concluded that a chief executive officer (CEO), who was also a board member and minority shareholder, could deduct legal fees in defending against charges that he made misrepresentations to an investor in the company. The legal fees were deductible under Code Sec. 162 as the ordinary and necessary expenses of his business of rendering services to his company as an employee.  The IRS argued that the suit

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PLR 201119003

In PLR 201119003, the Internal Revenue Service ruled that certain purchases and sales between a Marital (QTIP) Trust and the surviving spouse’s step-children pursuant to a valid, arm’s-length settlement agreement will not trigger gifts among the parties and will not result in a disposition of the life estate in the QTIP trust under section 2019 of the Internal Revenue Code. The Beliveau Law Group: Massachusetts | Florida | New Hampshire The attorneys at The Beliveau Law Group

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Statute of Limitations is tolled if excess Roth IRA contributions are not reported on return

The Tax Court’s decision in Paschall, (2011) 137 TC No. 2 held that the statute of limitations for assessing the excise tax on excess contributions to a Roth IRA remains open where a taxpayer fails to report the contributions on his return. The excess contributions in the case were caused by an attempt to use a so-called “Roth restructure” transaction to disguise excess contributions to the taxpayer’s Roth IRA. The taxpayer also was held liable for additions

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