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by edzollarstaxupdate@gmail.comDedicated to those of us who get excited about boring things (with apologies to Don Farmer for stealing that line).
Recent podcasts
Rolling Changes: IRS Releases Two Revisions to Circular 230 10.34
26/09/2007
Two days, two revisions: the IRS on September 25 issued proposed regulations to revise Circular 230 Â10.34, and the next day finalized regulations that also made changes to the same provision (among others). We take a look at both sets of changes, and their impact on tax practice.
The materials can be downloaded from http://www.edzollars.com/2007-09-26_Circular_230.pdf .
The podcast is sponsored by Leimberg Information Services, on the web at http://www.leimbergservices.com .
Total Devastation-Damage to a Residence and Eligiblity for Section 121
31/08/2007
The IRS released a Chief Counsel Advice (CCA 200734021) that dealt with how to interpret the language found in Section 121(d)(5) that, in certain cases, will allow a taxpayer to treat a residence that is destroyed as if it were sold for purposes of ignoring up to $250,000/$500,000 of gain under Section 121(a).
The materials for this week's podcast are found at http://www.edzollars.com/2007-09-01_Residence.pdf .
The podcast is sponsored by Leimberg Information Services, found at http://www.leimbergservices.com .
North, to Alaska-Thompson, Valuation and Reasonable Cause
26/08/2007
The Second Circuit Court of Appeals decided that the Tax Court had been too quick to dismiss a penalty under Â6662 in the Estate of Thompson, decided last week, but that the Court was not forced to accept the taxpayer's valuation when it rejected the IRS's own expert's valuation even if the Court had decided the burden had been shifted under Â7491.
The materials for the podcast are available at http://www.edzollars.com/2007-08-26_Estate_Tax_Value.pdf .
The podcast is sponsored by Leimberg Information Services, located on the web at http://www.leimbergservices.com .
It Has to Be Something! Tax Court Penalizes Taxpayer for Sloppy Records
21/07/2007
We once again revisit the Cohan rule, but this time in the context of a much larger taxpayer than we normally look at, in the case of Tyson Foods, Inc and Subsidiaries vs. Commissioner, TC Memo 2007-188. The taxpayer's was attempting to argue, based on Cohan rationalization, that they should be able to depreciate a $2,000,000+ debit remaining on their books after making an agreed upon adjustment under IRS exam. The IRS (and eventually the Tax Court) did not agree that such a treatment should be allowed.
The materials for the case are at http://www.edzollars.com/2007-07-21.pdf .
The podcast is sponsored by Leimberg Information Services, located on the web at http://www.leimbergservices.com .
Home Equity of a Different Sort-Claiming Deductions for a Home the Taxpayer Doesn't Own
14/07/2007
Equitable ownership of a home can grant a taxpayer a deduction for mortgage interest and taxes even when the taxpayer is not the legal owner. While the taxpayer in the case of Nair v. Commissioner, TC Summary Opinion 2007-116, did not have such ownership, the opinion does outline the requirements a taxpayer would need to demonstrate to have such equitable ownership.
As well, Mr. Nair's failed attempt to obtain a casualty loss deduction also offers some insights into the issue of establishing basis for items that are involved in a casualty loss deduction.
The materials for the podcast can be downloaded from http://www.edzollars.com/2007-07-15.pdf.
The podcast is sponsored by Leimberg Information Services, located at http://www.leimbergservices.com.
