by apexcpas | Jul 4, 2018 | Tax Planning
Sometimes the IRS gives you a second chance. That was the case in a private letter ruling the IRS issued to an unnamed partnership. But remember that private letter rulings cannot be cited as authority for anyone other than the taxpayer to whom it was issued. When the...
by apexcpas | Jul 4, 2018 | Tax Planning
Shareholders or employees of a corporation often lend it funds – expecting to be repaid. If the loan does not get repaid, a bad debt deduction can be claimed. However, the tax treatment is different for “business” bad debts and...
by apexcpas | Jul 4, 2018 | Tax Planning
As demonstrated in several recent court cases, the IRS is taking an aggressive position in issues involving valuations of noncash charitable contributions. Rather than challenging the value placed on the asset, the IRS is challenging whether the valuation is supported...
by apexcpas | Jul 4, 2018 | Tax Planning
An obscure provision of the income tax law denies all business deductions to anyone whose business involves trafficking in a controlled substance. Few people agree that it would be good public policy to allow drug dealers a tax deduction for the costs associated...
by apexcpas | Jul 4, 2018 | Tax Planning
Recent headlines have highlighted the names of wealthy individuals who have given up their U.S. citizenship, ostensibly to save taxes. Remember Eduardo Saverin, the Facebook founder who renounced his U.S. citizenship on the eve of Facebook’s now legendary IPO?...
by apexcpas | Jul 4, 2018 | Tax Planning
A recent ruling by the IRS Chief Counsel serves to remind businesses about the factors that figure into determining the length of a depreciation period. The specific case involved a floating riverboat casino securely moored to the land. The IRS concluded that it is a...