If you rent a house or condominium to someone for less than 30 days in Colorado it is likely sales tax is owed on that rental. There may also be other taxes owed as well including line items for a county lodging tax etc. If you...
I blog today about 401(K)'s from a tax perspective solely keeping in mind that my license is as an Enrolled Agent with the US Treasury. With that as a basis the benefits available to a self-employed individual in a solo 401(k) plan have increased. The...
The IRS Advance Pricing Agreement (APA) Program, concerned exclusively with reaching pre-filing agreements with taxpayers on transfer pricing, will shift from the office of IRS Chief Counsel to an office under the Transfer Pricing Director in the Large Business & International division’s international operation. In...
Bankruptcy tax law is complicated and involves a firm grasp of time lines. Getting it right is complicated and requires reflective consideration. I learned this first hand back in 2004. If you get it wrong you loose the privilege of a more thorough 'fresh start'...
When filing a Colorado amended return for individual income tax, these tips will help avoid processing delays. DO NOT include a copy of the 104 (original) return with the 104X. Include all schedules and supporting documentation. Even when there is no change to the 104CR credit schedule or...
Moving Expenses If you are a member of the Armed Forces on active duty and you move because of a permanent change of station, you can deduct the reasonable unreimbursed expenses of moving you and members of your household. Combat Pay If you serve in a...
If you are in the business of dispensing marijuana according to the United States Office of Homeland Security you are selling an illegal drug not a medicine like many individual states believe. Nevertheless Internal Revenue Code IRC 280(E) states that the expenses associated with selling illegal drugs...
Many taxpayers have both a dwelling unit and a principal place of residence. Understanding the difference between the two is important for a wide variety of reasons. The file that landed on my desk today involves such a matter. The taxpayer has a dwelling unit...
IRS Form 8889 is used to: (1) report health savings account (HSA) contributions, including those made on your behalf and employer contributions; (2) figure your HSA deduction; (3) report distributions from HSAs; and (4) figure amounts you must include in income and additional tax you may owe if you fail to be an eligible individual. You must...
Under Internal Revenue Code §213 an expense is considered for medical care if it is paid for the diagnosis, cure, mitigation, treatment or prevention of disease. It is deductible on the taxpayer’s Schedule A, subject to 7.5 percent of adjusted gross income for the year. However under Reg. §1.213-1(e)(1)(ii), expenses incurred...