Tax Warrior Chronicles

How to Host Tax Deductible Parties Benefitting Charitable Organizations

Posted on Thu, Apr 04, 2019

By: Rosalind W. Sutch, CPA, MT

 

Passionately supporting a charitable organization can be personally rewarding.  How you provide the support can be as simple as writing a check or as complex as throwing a charitable event in your home.  The former is easy to document and track for tax purposes, the latter is a bit more involved, but can have a significant impact for the charity benefactor.  Keep reading for the dos and don’ts of how to party with purpose and get a valuable tax deduction.

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Is Your Bag of Clothes Really Worth $500? - Documenting Noncash Donations

Posted on Tue, Oct 24, 2017

By: Adele Kilgus, CPA

 

If you’ve ever felt unsure about your noncash donations, how much you can deduct, or what type of supporting documentation you need, keep reading. This blog will help you understand your responsibilities for substantiation of noncash donations, and if your bag of clothes is really worth $500.

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Life Transitions: 10.3 Tax Facts About Selling a Home

Posted on Mon, Oct 06, 2014

Life is full of changes.  Big changes.  Selling one’s home certainly qualifies as one. For many it is among the largest financial transactions they will ever make, and one of biggest assets they will ever own. There are often life transitions, such as marriage, divorce, loss of spouse, or career change that may cause one to sell a home.  And, understandably, because of these layered issues, taxes usually are not at the forefront of thought. The Tax Warriors® would like to share some helpful facts that you should know if you sell your home. 

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Recap of Recent Tax Developments

Posted on Thu, Jul 31, 2014

The past few months have been chock full of tax-related developments.  The sweeping changes that took place in 2013 did not stop the IRS and Tax Courts from continuing to make news in 2014. With changes affecting everything from IRAs to HSAs (and other letters of the alphabet), many of these developments may impact your income tax liability—and we are only just past half way through the year!

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LGBT Marriage & Taxes – Tie the Knot or Finalize the Adoption First?

Posted on Wed, Mar 19, 2014

After the historic June 26, 2013, Supreme Court ruling that Section 3 of the Defense of Marriage Act (aka DOMA) was unconstitutional, many LGBT couples happily committed to legal marriage in 2013 and even more are considering nuptials in the near future.  However, many couples, for a variety of reasons, have not yet taken the plunge.  Our LGBT tax consulting experts have identified several economic and tax considerations LGBT couples may want to quantify when assessing the financial impact of marriage.  This is the second post, in a series of blogs, that addresses these issues.  Last week, we began the series with a post that about who should claim the kids when a couple isn’t married.

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Guarantor of LLC Debt is At-Risk, Unless…

Posted on Fri, Aug 16, 2013

IRS Chief Counsel has concluded that the guarantor of debt of a LLC treated as a partnership or a disregarded entity maybe at risk for the debt even if the guarantor has not waived his rights of subrogation and reimbursement from the LLC obligor. Therefore, the member would be allowed a deduction for losses otherwise disallowed under the At-Risk rules. However, a guarantor will not be at risk if there are co-guarantors, except to the extent the guarantor has no rights of contribution against the other guarantors.

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IRS Makes Home Office Deduction Simpler - New Safeharbor Option

Posted on Mon, Jan 21, 2013

 

If you have a home office, the IRS has recently come out with some very good news in Rev Proc 2031-13: a simpler method for calculating the Office-In-Home deduction will be available for your 2013 tax return.  In place of the 43-line Form 8829 that was previously required to take the home office deduction, the new optional safe-harbor method allows a $5 deduction for every square foot of home office space, up to 300 square feet (a $1,500 deduction cap).  Gone will be the days of sorting through old utility and insurance bills and then allocating the annual expenses between your Schedule C, Schedule A, Form 8829, and nondeductible portions (calculations that even da Vinci would

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