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Category: Income Taxation (page 1 of 7)

Linda Kotis: Salvaging the 2015 Roller Coaster Ride with Your Retirement Accounts: Roth IRA Conversion

By Linda Kotis

The stock market has been full of crazy swings this year.  Your retirement accounts were buoyed by the 1.2% gain in the Dow Jones Industrial Average on January 8.  Then you cringed as account values bounced around in March with a 333 point drop. You nearly fainted … Continue reading

Clarence McDonald Leland, Jr. v. Commissioner: Tax Court Holds City Attorney Operating Farm Materially Participated in Farm Activity

In Clarence Mcdonald Leland, Jr. v. Commissioner, T.C. Memo 2015-240, the Tax Court held that an attorney practicing law in Jackson Mississippi who operated a farm in Texas materially participated in the farming activities for Code Sec. 469 passive activity loss purposes.

The court stated the following as part … Continue reading

Steve Akers: Legislation Requiring Consistency of Basis with Estate Tax Values and Requiring Information Reporting

Steve Akers, Senior Fiduciary Counsel, Southwest Region, Bessemer Trust, has made available for download his summary of legislation enacted on July 31, 2015, which requires consistency of basis with estate tax values and information reporting.  The abstract for Mr. Aker’s full report reads as follows:

Legislation enacted on July 31,

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Steven N. Levi et al. v. Commissioner: Couple’s Return Not Filed Because Agent Who Signed Return Lacked Authority

In  Steven N. Levi et al, v. Commissioner, T.C. Memo 20-15-118 (June 29, 2015), the Tax Court held that a couple that did not sign their tax return filed an invalid return.  The Tax Court  explained that the agent who signed on their behalf lacked the authority to … Continue reading

Trust Decanting: A Sale Without Gain Realization by Jason Kleinman

Jason Kleinman, Herrick, Feinstein LLP, has made available for download his article, “Trust Decanting: A Sale Without Gain Realization,” which was published in the Real Property, Probate and Trust Law Journal, Vol. 49, Winter 2015.  The Abstract is as follows:

This Article describes why decanting or modifying a trust cannot

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US Tax Court: Failure to Report Gross Income of IRA Distribution

In Morris v. Commissioner of Internal Revenue, the United States Tax Court sought an answer to “whether [the] petitioners failed to report during 2011 taxable distributions from an individual retirement account (IRA).” While the petitioners were under a belief that the money they obtained from their father’s estate would … Continue reading

In Agents We Trust – A Proposal for Material Participation of Trusts by Ryan Pulver, Alan Joseph Wilson

Ryan Pulver, of Jackson Kelly PLLC, and Alan Joseph Wilson, have made available for download their Wyoming Law Review article, In Agents We Trust – A Proposal for Material Participation of Trusts.”  The Abstract reads as follows:

In the business succession planning context, estate planners frequently employ the use of

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IRS Issues Fact Sheet On Taxpayers’ Right to Confidentiality

On March 17, 2015, the Internal Revenue Service (IRS) released a fact sheet on the rights of taxpayers, specifically about confidentiality of information. In this fact sheet, the IRS restructured and grouped taxpayers’ rights in existing tax code into 10 broad categories to make it easier for taxpayers to find … Continue reading

IRS Tips for Home Mortgage Debt Cancellation

A tax payer usually has to pay taxes on cancelled debt regardless of whether all or part of the debt was cancelled. However, certain exclusions may apply to those whose mortgage debt was cancelled in the 2014 tax year making the cancelled debt not taxable. For example, if the cancelled … Continue reading

Tax Court Holds That Threat of Litigation Eliminates Code Sec. 642(c)(2) Charitable Set Aside Deduction for Estate

In Estate of Eileen S. Belmont, Deceased, Diane Sater, Executrix, the Tax Court disallowed a charitable set aside deduction under Code Section 642(c)(2).

In the Estate of Belmont, the Decedent’s (“D”) will directed that the residue of her estate, which included income in respect of a decedent, be left … Continue reading

IRS Launches Directory of Tax Preparers

The Internal Revenue Service launched a new helpful tool for tax preparers this week to help locate tax preparers in an online directory. The directory includes agents, CPAs, attorneys and  others that have completed requirements for filing taxes for the current filing season.  All of those listed have a Preparer … Continue reading

IRS Tax Tip Regarding Filing Status

It’s time filing for tax return of year 2014. The Internal Revenue Services (the IRS) recently released tax tip regarding how to choose among five filing statuses, which are single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent child. An individual’s marital status on … Continue reading

Taxpayer Fails to Prove Nonresidency When Being Evasive at Court’s Examination

Pennsylvania court found that a taxpayer failed to prove his nonresidency in the commonwealth as he could not make his case clear at examination. In Lust v. Commonwealth, the taxpayer argued that he was not a resident of Pennsylvania and filed a tax return accordingly for 2005. The court tried … Continue reading

Richard L. Harris: It’s All About Income Tax

It’s All About Income Tax
Private placement life insurance may provide many advantages for your clients

by Richard L. Harris

Advisors build relationships with their clients by showing that they care. Bringing an idea to the client, whether the client decides to use it or not, is one way of … Continue reading

IRS Tips Individuals about Tax Return as to Exemptions and Dependents

The Internal Revenue Service (IRS) released its latest tips on tax return for individuals. This issue involves ten tax facts about exemptions and dependents, with regard to e-file, personal exemptions and exemptions for a dependent, health-care coverage report, disqualified persons and special situations that dependents need to file.

See IRS … Continue reading

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