If records were kept about such things, Tonda Lynn, a waitress at a pancake house, may have received the largest tip in history when a customer gave her a
lottery ticket that turned out to be worth $10 million. As the U.S. Tax Court put it in a heading in its opinion resolving gift tax issues arising from subsequent
events, suddenly “She’s Got a Ticket to Ride.”
Taxes
Homebuyer Wins Tax Credit
The federal income tax code provides for a refundable tax credit to a first-time homebuyer of a “principal residence.” In 2008, the year that Joseph took the
plunge and bought his first home, the credit was 10% of the purchase price, up to $7,500. When he claimed the maximum credit on his 2008 tax return, the IRS
came calling to challenge his eligibility for the credit.
Employee Or Contractor? IRS Offers Amnesty
The Voluntary Classification Settlement Program (VCSP) is a voluntary amnesty program created by the IRS that provides an opportunity for taxpayers to
reclassify their workers as employees for employment tax purposes for future tax periods, with partial relief from federal employment taxes. To participate, the
taxpayer must meet certain eligibility requirements, apply to participate in the VCSP by filing Form 8952, “Application for Voluntary Classification Settlement
Program,” and enter into a closing agreement with the IRS.
Feline Friend 1, Irs 0
Some say the world is divided between dog lovers and cat lovers. Jan is the latter.
She has seven cats of her own that live with her in her modest California home. But Jan also puts her modest financial means where her mouth is. As a volunteer for a local IRS-approved charity, she has taken care of some 70 stray cats at her home while adoptive homes were being found for them. The charity’s mission is to trap stray cats, neuter them, and then place them in homes temporarily until they can be adopted or released.
The IRS is Here to Help
To help struggling taxpayers who owe back taxes, the Internal Revenue Service (IRS) recently unveiled a series of new steps to help people get a “fresh start,” to use the phrase invoked by the IRS Commissioner, with their tax liabilities. The general idea is to recognize the challenging economic environment the country faces while also keeping the tax revenue flowing in at acceptable levels. The focus is on changes to the tax lien system and other collection tools already used by the IRS that will make paying taxes a little easier on taxpayers.
Don't Lose Your Charitable Deduction
For you to claim a federal income tax deduction for a charitable donation valued at $250 or more, you must obtain from the recipient of the donation a
“contemporaneous written acknowledgment” letter. Failure to obtain such a letter can result in a disallowance of the deduction by the IRS.
The acknowledgment letter, which may be in the form of a thank you letter to you as the donor, should include the following information:
SBA Loans Can Help To Finance Small Businesses
It is no secret that businesses generally, and small businesses in particular, have been through rough times, and those are not over yet. Still, there is some
assistance to be had as a small business owner if you know where to look. One prominent example is the Small Business Administration (SBA) and its
Guaranteed Loan Programs.
New Gift Tax Break
Having a net worth of $1 million, or maybe even $2 million, does not give you entry into such a small exceptional group as used to be the case. By some estimates, between 5 and 6 million American households have a net worth of at least $2 million. This means that currently there are considerably more people who should consider how best to shield their money from the IRS and pass it on to their heirs, assuming that is their wish. One such strategy that just became more attractive, due to new federal legislation, is the making of gifts during one’s lifetime.
Different Ways to Hold Investment Property
Convinced that property values have finally bottomed out in your area, you decide to take the plunge and buy some real estate as an investment. As the saying goes, buy low and (hope to) sell high. In such ventures, one of the earliest and most important decisions concerns which type of ownership entity is best suited for raising capital and securing the financing to fund the acquisition or improvement of the property.
Season Tickets Cannot Be Seized
When a taxpayer failed to pay his federal income taxes, the IRS issued a levy against him. Among his possessions was a block of 16 season tickets for a professional sports team. He also had paid a deposit per seat as a “personal seat license,” on top of the cost for the season tickets themselves each year.