Tag: tax
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Petty Pennsylvania tax penalty
Tax professionals seem to love sharing bizarre stories of the trade especially when the taxpayer or the government acts in some silly manner. I am no exception. Recently I settled a multi-year complex tax problem for a small business client in Pennsylvania. I figured that, as happened in this case, if I can negotiate a…
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No double taxation for dual state residents
Can a state or local government tax your income that was earned and already taxed in another state? That was the question before the U.S. Supreme Court over the past few years and an opinion was finally issued this week. “NO” says SCOTUS in a 5-4 decision. The surprise to me was that it was such a close…
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Tax accounting for hobby income and expenses
If you have an active hobby then you might find that you make some money at it. But it is important to recognize that the IRS makes a distinction between businesses run for profit and those that are hobbies without a profit motive. This post summarizes the four key differences in tax accounting between the two.…
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Proposed Sandy tax relief for individuals and businesses
These measures are proposed June 2013 and appear to have a strong chance of passage. (My source is NJSCPA.org). Individuals: Waiver of Adjusted Gross Income limitation for theft/loss deduction, so individuals can deduct the cost of uninsured losses. Increased Charitable Contribution Limits: The legislation increases charitable deduction limits of taxpayers with respect to cash…