Tax Warrior Chronicles

Online Gambling & Sports Betting: The IRS Perspective

Posted on Wed, Sep 01, 2021

In its May 2018 decision, the U.S. Supreme Court opened the door for legalized sports betting. Since the ruling, companies like DraftKings, FanDuel, and BetMGM have built a national presence along with some states’ online casinos. However, many are still unsure how to report winnings and/or losses. Whether it is traditional or online gambling, or sports betting, the IRS treats it all the same. Let’s dive into how the IRS treats these winnings and how losses can be a tax benefit for certain individuals.

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How Social Media Influencers Are Taxed In the U.S.

Posted on Tue, Apr 30, 2019

Social Media is a normal and constant part of our lives. In 2019, there will be 2.77 billion social media users; that’s slightly more than one in three people on the planet!* For some social media users, with a large following and with high engagement of those followers, this means big business and potential income. Companies are using social media to market their products to an influencer’s universe of followers. In today’s blog, we’ll discuss how an influencer is taxed on income generated from marketing or selling products on social media.

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Your Foreign Interests and the U.S. Tax Law

Posted on Fri, Dec 14, 2018

Tax Warrior Patrick J. McCormick, JD, LLM, recently wrote an article for Tax Notes titled, "How is My Foreign Interest Classified for U.S. Tax Purposes." If you or a client have investments or other income-generating enterprises based outside the U.S., this piece will be of interest.  In the article, Patrick explores methods for determining how toclassify international holdings, options for altering the default classification of anentity, the implications of various classification types, and things to consider when a choice of entity classification is possible.  You can read Patrick's article here.

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CRS Looking at Tax on “Carried Interest” for Partnerships…Again

Posted on Tue, Mar 25, 2014

Can anyone recall a year when ‘tax reform’ has not been a hot issue in Washington? Well, this year is no different. While most tax commentary leans toward no significant new tax laws to be passed in 2014, the fund manager issue has both sides of the aisle talking…again. Now the Congressional Research Service (CRS) is looking closely at competing carried interest proposals.

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Why Every REIT Should Know About Taxable REIT Subsidiaries

Posted on Mon, Feb 17, 2014

A real estate investment trust (REIT) is an organization that is taxable as a corporation that invests principally in real estate and mortgages and elects special tax treatment. A REIT, in contrast to other corporations, may deduct dividends it distributes to its shareholders allowing it to serve as a conduit. However, a REIT election is available only if the corporation satisfies certain requirements in the Internal Revenue Code. These requirements include provisions on the REIT’s organization, structure, distributions, and perhaps most importantly, its sources of income.

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"Limited Partner" for Tax Purposes? What are the Stakes?

Posted on Mon, Mar 18, 2013

This Journal of Taxation column, edited by Sheldon I. Banoff and Richard M. Lipton, comments on the IRS's and courts' positions on characterizing members of limited liability entities as "limited partners" and "general partners," for purposes of potential self-employment tax avoidance under Section 1402(a)(13).  

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Details on Tax Deductions: Meals and Entertainment

Posted on Thu, Nov 15, 2012

Every now and again our clients ask us for details about tax deductions we are all familiar with, but just want to know a little more about.  We've found that knowing the "rules" can result in higher deductions, if you account for and document your files appropriately.  Higher deductions = Less Tax!

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Filing Requirements For Tax-Exempt Organizations

Posted on Mon, Oct 29, 2012

Top Tax Issues Facing Charities: PART I

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