What is a hobby loss vs. a deductible business loss?
- David Greene
- Comments Off on What is a hobby loss vs. a deductible business loss?
A hobby loss is not deductible, but a business loss is. An IRS audit is usually where the question arises: Is this “business” really a business or merely a hobby which continuously loses money? The IRS looks at several factors…
What happens to a trust after the trust maker dies?
- David Greene
- Comments Off on What happens to a trust after the trust maker dies?
What happens after the trust maker dies depends on the language in the trust. Most trusts are Family Trusts with husband and wife as co-trustees. When the first spouse dies, the trust continues with the surviving spouse as trustee. When…
What are the advantages of having a trust?
- David Greene
- Comments Off on What are the advantages of having a trust?
First, one of the main advantages of having a trust is the avoidnace of probate. There are certainly other advantages as well. It can help insure passing of assets to children in the aftermath of a divorce, for instance when…
What can I do to avoid being audited?
- David Greene
- Comments Off on What can I do to avoid being audited?
I often get this question during tax season. There is nothing you can do to guarantee that you will never be audited. However, by following three simple rules, you can minimize your chances of being audited and, if you are…
Is the Offer In Compromise program a tax scam?
- David Greene
- Comments Off on Is the Offer In Compromise program a tax scam?
The Offer in Compromise program is not a scam. However, scammers use the promise of an Offer to scam you. There are a lot of scams being run today, one of which states that the promoter can settle your back…
In light of COVID, does one going off to college need any estate planning documents?
- David Greene
- Comments Off on In light of COVID, does one going off to college need any estate planning documents?
As more colleges return to having full time students, many fear that COVID cases will greatly increase among the young. In light of that you are wise to prepare your child as much as possible. There are two primary documents…
Does working from home change tax implications for businesses and employees?
- David Greene
- Comments Off on Does working from home change tax implications for businesses and employees?
An employee’s work from home status will change certain tax implications for both employer and employee. While home office expenses have not been allowed as a deduction for employees since 2018, this year employers can help employees by buying equipment…
Will my severance pay from my employer be taxed?
- David Greene
- Comments Off on Will my severance pay from my employer be taxed?
Severance pay is generally treated the same as ordinary income, i.e. wages or salary. This is because the IRS treats it as final payment of income due to the employee or sometimes unused vacation day or sick day pay. However,…
I would like to set up an Installment Agreement to pay my delinquent taxes. Does the IRS have to accept my Agreement at whatever amount I am willing to pay per month?
- David Greene
- Comments Off on I would like to set up an Installment Agreement to pay my delinquent taxes. Does the IRS have to accept my Agreement at whatever amount I am willing to pay per month?
The IRS will accept your Installment Agreement request without your furnishing your financial information only if the following conditions are met: 1) the total owed is less than $50,000.00; 2) the taxpayer has filed all required returns for the past…
What are the most common mistakes made on a tax return?
- David Greene
- Comments Off on What are the most common mistakes made on a tax return?
Here are the most common mistakes the IRS sees from self-prepared returns: (1) Math errors – be sure to check your math twice; (2) Misspelled name or changed name not updated (be sure the name on the return matches the…