The Tax Court only allowed doctors who donated stock in their practice to a newly formed tax-exempt professional services corporation (PSC) a small portion of the charitable contribution deduction they had original claimed. The Court found that the value of…
Introduction There were 66 million babies born between 1945 and 1964. The era was known as the “Baby-Boom” and the “Boomers” are reaching retirement age. In fact, the oldest are now turning sixty-six and the youngest are embarking on their…
In the real world of buying and selling businesses, some businesses have a very large component of goodwill, while others have little or none. The concept of goodwill is confusing to most business owners, and many hold serious misconceptions about…
Q: I am planning on financing my child’s education for college. Are there any good strategies to follow when saving for college expenses? A: There are a number of good avenues to follow when planning your child’s education financing. First,…
In a Letter Ruling, the IRS held that a second marriage and blended family qualify as an unforeseen circumstance for partial home sale exclusion. In the request, the two families had five children between them and the necessity arose that…
Introduction As of May 7, 2010, our nation’s unemployment rate remained at 9.9%. Economists have predicted that it will remain high for months and possibly the next couple of years to come. With 8.5 million jobs having been eliminated in…
Most economists seem to be in agreement that the US economy has turned the corner and is making slow but steady progress every month towards a full recovery. As of this writing, the possibility still exists that some external shock…
Q: I have just now realized that I have made a mistake on my tax return for 2009. What can or should I do to correct the discrepancy? A: If the mistake is a simple mathematical calculation, the IRS will usually…
The Tax Court found that a retired law firm partner’s guaranteed payments were reportable as ordinary income, not as a capital gain. In the case, the taxpayer was an equity partner of a law firm. Each equity partner was entitled…
Introduction It is official. The Patient Protection and Affordable Health Care Act has passed Congress and was signed by the President on March 23, 2010. The law changes the entire paradigm behind healthcare and even changes some tax rules. While…