Taxation of Self Employment Retirement Plans

Taxation of Self Employment Retirement Plans
(NOTE: This is a continuation of a case study looking into tax implications of starting up a small business. This particular article deals with tax deductions for small business. Click here to go back to the start of the case study.) Before I begin, I want to note that I am a tax professional, not a retirement specialist. ...

Small Business Depreciation and Section 179 Expense

Small Business Depreciation and Section 179 Expense
(NOTE: This is a continuation of a case study looking into tax implications of starting up a small business. This particular article deals with tax deductions for small business. Click here to go back to the start of the case study.) Amy, in getting her business moving along, decided to pick up a new tablet to show off all ...

IRS Adds Heartbreak to Heartlessness

IRS Adds Heartbreak to Heartlessness
How any woman could abandon her children? I don’t know. I’ll never understand that. But that’s exactly what the sister of Petitioner in TC Memo 2012-240 did. Packed her bags and headed to Jamaica. Her brother, fortunately, swung by her house and found her children sill there, all alone. The man, with his new ward, ...

C. Johnson’s Drag Race

C. Johnson’s Drag Race
Most things aren’t deductible, and I think that’s pretty well understood by 90% of Americans. As much as I’d like to reduce my taxable income by the video games I purchase, or the model railroads I create, or on my personal aerial drones, I can’t. Unless, of course, they’re for my business, then I can ...

Burning Down the House

Burning Down the House
I’m a little behind on this one, since the court case was determined back in February, but I’m sure there are plenty of eager readers who missed the final ruling of Rolfs v. Commissioner, 668F.3d 888. So here’s the overall concept: you can’t take a tax deduction for burning down your house. Sorry. The story ...

Napkins Aren’t Receipts

Napkins Aren’t Receipts
Apparently lawyers can’t talk their way out of everything. One attorney attempted to deduct self-generated, handwritten receipts, which I imagine were in crayon on the back of his used Famous Dave’s napkins. He not only couldn’t provide any receipts of purchase, he couldn’t provide any credit card statements, or any third party generated proof at ...

Thought on Charitable Contributions

Thought on Charitable Contributions
It’s that end of the year time where everyone is trying to get a bigger piece of your pocketbook. For those of you who want to give that money to a charitable organization, here are just a few quick tax tips. I’ve seen a little bit of confusion about them over the last couple of ...

Falling Flat

Falling Flat
I’m sorry to tell any of you who were hoping for some change, but we will never have a flat tax system. Not a real one, at least, so just leave it alone. I’m talking about any kind of flat tax. Flat individual income tax. Flat corporate income tax. Herman Cain’s “9-9-9” plan. It’s just ...