Taxpayers are entitled to claim an exemption for dependent children they supported at any time during the tax year.
So, if a baby is born at on December 31st, the parents can claim the exemption even if the child was only a dependent for one minute of the year.
This is precisely what happened to Matt and Maria Lenius of Peoria, [...]
Tags: Individual Taxation
In 1997 President Clinton signed into law a bill that entirely eliminated the capital gains tax on profits of $500,000.00 or less on the sale of most homes.
Now, some economists are saying that the sale-of-residence capital gain exclusion was a significant contributing factor in creating the housing bubble the New York Times reports in Tax [...]
Tags: Individual Taxation · Opinion · Tax Policy
IRS Publication 547Â requires a taxpayer claiming a theft loss to prove 4 things: 1) when he first discovered the property was stolen, 2) the fact that the property was, in fact, stolen (i.e. not lost or misplaced), 3) the fact that he owned the property when it was stolen; and 4) whether a claim for [...]
Tags: Deductible Expenses · Individual Taxation
It should come as no surprise that taxpayers who get hit with the $10,000.00 penalty for failure to file Report of Foreign Bank and Financial Accounts (FBAR) are trying to get relief from the penalty by blaming their tax preparers for it.Â
Here is an excerpt from a recently issued statement of the IRS Office or Professional Responsibility (”OPR”) titled Professional Responsibility [...]
Tags: IRS Penalties · Individual Taxation · Unfiled Returns
It’s not just team owners who are worried about an Obama presidency.
Agents for major league baseball players are doing some year end tax planning for their athlete-clients in anticipation of an Obama tax increase in 2009 the Chicago Tribune reports:
Obama’s proposal would increase federal income tax on families earning more than $250,000 annually, money that [...]
Tags: Individual Taxation · Tax Tips