by Leif Jensen | Jan 18, 2022 | Taxes |
There is always a question of those who own multiple properties, and they want to sell one. That one is surprisingly always their principal residence until I give them the requirements for exclusion. But there are ways to determine which is really their principal...
by Leif Jensen | Jan 12, 2022 | Running a Business |
Thinking of starting that side business? I always think it is a great idea to start a side business and have multiple income streams and not being solely reliant on your employer for all income. But you will need to keep some information in mind when you do start...
by Leif Jensen | Jan 11, 2022 | Taxes |
There are times that you need someone to work with the IRS on your behalf and they Service has made it rather easy for that to occur. A Form 2848 has to be filled out and submitted to the service. This form should be faxed to the IRS and not mailed. Mailing takes...
by Leif Jensen | Jan 10, 2022 | Running a Business |
I have been warned about scope creep and the need for engagements letters to spell out ever more details. So, I should be using an engagement letter for tax returns which we do utilize for businesses and individuals. I should then have a new separate letter for any...
by Leif Jensen | Jan 5, 2022 | Taxes |
The IRS typically has three years, to audit your returns. The overarching federal tax statute of limitations runs three years after you file your tax return. If warranted, the IRS must make an additional tax assessment within the later of three years from: The return...
by Leif Jensen | Jan 4, 2022 | Taxes |
In certain circumstances, the IRS allows for abatement of penalties. Utilizing Form 843, Claim for Refund and Request for Abatement, to claim a refund or abatement of penalties assessed by the IRS. The IRS instructions to Form 843 list the instances where taxpayers...
by Leif Jensen | Jan 3, 2022 | Tax Court, Taxes |
Taxpayers have the following rights that apply whenever they have dealings with the IRS. The right to be informed – Taxpayers have the right to know what they need to do to comply with tax laws. They are entitled to clear explanations of the law and IRS...
by Leif Jensen | Dec 21, 2021 | Rant |
I was reading an article in Fast Company, where they were discussing all the new ways to make food products, which will be produced worldwide. We can’t get a third of the country to vaccinate, how are you going to get them to eat a 3D printed steak? I am sure at some...
by Leif Jensen | Dec 20, 2021 | Rant |
Leadership is someone who can break tasks down into deliverable items, create teams with clear responsibilities, establish milestones and measures, and hold people accountable succeed in enacting the provisions of the plans. Are you that type of leader? Do you work...
by Leif Jensen | Dec 15, 2021 | Taxes |
I have to admit that tax software has made it easier for people to prepare their own taxes, but there are still situations where it’s smart to bring in a pro. Depending on your income, you may be able to prepare and file your taxes at no cost through the...
by Leif Jensen | Dec 14, 2021 | Taxes |
A ghost preparer is someone who doesn’t sign tax returns they prepare. Those unscrupulous preparers often print the return and have the taxpayer to sign and mail it to the IRS. For e-filed returns, the ghost will prepare but refuse to digitally sign as the paid...
by Leif Jensen | Dec 13, 2021 | Taxes |
The IRS is apparently being stingy on granting homeowner associations tax-exempt status as social welfare organizations, finding that many of them are organized or operated to mainly serve private interests of the members. I only know HOA’s to be self-serving...
by Leif Jensen | Dec 8, 2021 | Running a Business, Tax Court |
There is an issue that keep appearing in cases coming out of the Tax Court: Large rental losses taken by taxpayers claiming to be real estate pros. Real estate professionals must meet two tests to beat the passive-activity loss rules and deduct their rental losses in...
by Leif Jensen | Dec 7, 2021 | Tax Court |
Individual members of a bankrupt LLC catch a break from a district court. The bankruptcy trustee can’t recoup payments the owners got from the firm, even though the payments were made within two years prior to the bankruptcy filing. The payments constituted...
by Leif Jensen | Dec 6, 2021 | Running a Business, Taxes |
There is a new law changing the 1099-K reporting rules which should hike compliance requirements in this area. What is a 1099-K??? This form endeavors to ensure that all online retailers are reporting sales for tax purposes. It requires credit card companies, such as...
by Leif Jensen | Dec 1, 2021 | Running a Business, Taxes |
Are you a gig worker? Do you have a side hustle to make yourself some extra cash? Do you know that you are supposed to report that cash to the IRS as reportable income and possibly pay self-employment taxes on those monies? The IRS wants to raise public awareness of...
by Leif Jensen | Nov 30, 2021 | General, Uncategorized |
Apartment rents are rising across the nation as tenants return to cities and soaring home prices push many would-be buyers out of the market. One data provider shows the median rent for a one-bedroom apartment is up 9.2% since the second quarter of 2020. Two-bedrooms...
by Leif Jensen | Nov 29, 2021 | General |
The coronavirus pandemic was listed, to be the overwhelming cause for the surge in US for gun sales; attributed to fears around social unrest and crime and, in some cases, people having more time for hunting. But now ammunition had quickly been depleted into short...
by Leif Jensen | Nov 23, 2021 | Economy, Employees, Running a Business |
Have you seen those cheesy Amazon commercial, where people are making all sorts of demands from an employer before they will deem to work for them? We all know that there are people who just don’t want to work. Well businesses have solutions to all of these people,...
by Leif Jensen | Nov 22, 2021 | Investing |
Have written before about Bitcoin and virtual currencies. I am not a fan. People whom I expected to embrace virtual currencies are avoiding them and other are embracing them, who I thought would never touch them. But now investors now have a new option for gaining...
