Anyone looking outside their window (or watching TV) recently knows that we are in a volatile time. Among other things, current volatility results from the ongoing COVID-19 pandemic, an uncertain economy,[1] and upcoming elections. The effects of this include large amounts of government spending,[2] low interest rates,[3] and a reduction of the value of a…
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Here we are coming upon the fourth anniversary of the one of the most shocking nights of our country since perhaps the Battle of Saratoga and one of the largest cash outlays by our government ever known by means of the CARES Act. On the heels of these events Democrats are setting the stage to…
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In a recent opinion out of the United States Court of Appeals for the Seventh Circuit, the Court upheld the Tax Court’s ruling that cash payments made from a family owned company to the son of the founder were not bona fide debts, and thus not deductible as bad debt expenses.[1] Additionally, the Court sided…
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The federal government shutdown is stretching into week four, and there is no end in sight. The shutdown has affected all federal agencies and courts, including the United States Tax Court. One question raised by the shutdown is what effect does it have on Tax Court filing deadlines? The question is important because statutory filing…
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Lock It in Now: Deduction for Alimony Set to Expire After 12/31/18 As part of the Tax Cut & Jobs Act of 2017 (the “TCJA”), Congress included provisions to repeal the deduction of alimony under Internal Revenue Code (“IRC”) § which called for a corresponding inclusion of alimony in the income of the recipient where such…
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The Internal Revenue Service recently released the Applicable Federal Rates (“AFR”) and the Section 7520 rate (“7520”) for August 2018. While the AFR remains low from a historical standpoint, as do interest rates in general, there has been a recent trend of rising interest rates. The short term AFR has increased from .56% for August 2016…
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When husband and wife own a partnership together, a common misconception is that because a joint return is filed for the husband and wife, the partnership can be treated as a disregarded entity and not have to file its own return. Unfortunately for some, it is sometimes realized after the reliance on this erroneous fact,…
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It has been a project, but we are happy to announce our website is finally up and going. We intend to add more content regularly.