It’s a crazy world we live in.
Denise Lavoie of the Associated Press writes that the Tax Court has ruled that the costs of a sex change operation are tax deductible:
The U.S. Tax Court ruled yesterday that a Massachusetts woman should be allowed to deduct the costs of her sex-change operation, a decision that could have [...]
Tags: Court Cases · Deductible Expenses
I found this interesting FAQ on the U.S. Department of Treasury website (emphasis added):
Question: There is much talk about encouraging people to volunteer their time to help organizations that provide community services. Shouldn’t people who do volunteer work be provided with a tax deduction to compensate them for their donation?Â
Answer: Under current law, volunteers are [...]
Tags: Deductible Expenses · Tax Policy
WebCPA reports:
The House of Representatives unanimously passed legislation Wednesday that would allow individuals who make charitable contributions to victims of the earthquake in Haiti to claim an itemized charitable deduction on their 2009 tax return instead of having to wait until next year to claim the deductions on their 2010 tax return.
In principle, I don’t [...]
Tags: Deductible Expenses · Individual Taxation · Legislative Watch
The IRSÂ is reminding taxpayers that they have until December 31st to take advantage of a tax break on the purchase of new passenger automobiles, light trucks, motorcycles and motor homes:
Taxpayers who buy a qualifying new motor vehicle this year after Feb. 16 can deduct the state or local sales or excise taxes they paid on [...]
Tags: Deductible Expenses
Beause of the housing crisis and the general recession it’s almost impossible to find a real estate investor who actually turned a profit in the last three years. Naturally, these investors are turning to their tax preparers to find ways to get the maximum tax benefit of their losses.
But the IRS is ready says tax [...]
Tags: Deductible Expenses · Tax Tips
Here is more evidence (as if we needed it) that supports the soundness of our recommendation that small business owners should incorporate or form an LLC rather than operate as a sole proprietorship.
Back in October we reported that the IRS is considering placing limits on the amount of Schedule C  (return of a sole proprietorship) losses taxpayers may deduct against other income because of rampant [...]
Tags: Deductible Expenses · Tax Tips
The Hyde Amendment - much talked about of late in connection with healthcare reform - prohibits the use of government funds to fund abortion.
Tax Policy Blog’s Gerald Prante poses the following question:
If the Hyde/Stupak Amendment, which says that government should not be directly financing abortions or insurance plans that cover abortion, is good public policy, what about indirect subsidies via [...]
Tags: Deductible Expenses · Tax Policy · healthcare reform
Thursday, October 15th, is the last day taxpayers can file their 2008 individual income tax returns without incurring a late filing and late payment penalty. But what do you do if you don’t have all of the information necessary to complete your return?Â
Many unincorporated, self-employed taxpayers fail to keep adequate books and records from which a business tax [...]
Tags: Deductible Expenses · News · Self-Employed Taxpayers
It isn’t often that I side with the IRS’s interpretation of a tax code provision; however, this case compels me to do so.
Several bloggers have written about the IRS’s recent decision to deny a taxpayer a charitable deduction for the value of a home he donated to the local fire department which was then as part of [...]
Tags: Deductible Expenses
Forbes reports that a 78-year-old retired tax lawyer said he intends to challenge the IRS’s ruling disallowing a medical expense deduction he claimed for more than $300,000 he spent for prostitutes and pornography. William G. Halby of Brooklyn, N.Y. says the prostitutes and pornography were necessary to help him fight his depression:
“It’s a holistic approach to medicine,” he said. “I live [...]
Tags: Deductible Expenses
Wall Street Journal – Taxes Blog
