Author Archives: Russ

The Grinch Is Alive and Well in Pennsylvania

Posted on December 27, 2005 by Russ

Pity those of you who own businesses in Pennsylvania. For your elected officials have no pity, and just days before Christmas put lumps of coal in your stockings. Pennsylvania Governor Ed Rendell (D) vetoed a package of business tax cuts … Continue reading →

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I’m Too Cynical: 2005 In Review

Posted on December 23, 2005 by Russ

…Or so I’ve been told. But as I continue to age (a phenomenon that I’ve been assured will continue) I have begun to wonder if Mark Twain was correct, when he said, “Suppose you were an idiot and suppose you … Continue reading →

Posted in IRS | 3 Comments

Business vs. Hobby

Posted on December 22, 2005 by Russ

One of the most vexing things for the layman is the difference between a hobby loss and a business loss. Because the US taxes all income earned worldwide, it makes no difference whether you earn money in a hobby or … Continue reading →

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Should All Tax Preparers be Regulated?

Posted on December 21, 2005 by Russ

Wait a second. Aren’t tax preparers regulated? Well, sort of. All tax preparers fall under the aegis of Circular 230. If your tax preparer is an Enrolled Agent (EA) (what I am), a Certified Public Accountant (CPA), or an attorney, … Continue reading →

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No Records, But A Big Heart (and a Wonderfully Written Decision)

Posted on December 15, 2005 by Russ

When the first lines of a Tax Court decision read, Tax records are the ancient Egyptians of the modern age–plagued not by boils, frogs, flies, and lice but by fire, flood, mold, and theft. The cursed tax records in this … Continue reading →

Posted in Tax Court | 5 Comments

A Gambling Association

Posted on December 14, 2005 by Russ

The Tax Court today looked at whether a heretofore charitable organization (a 501(c)(3)) that has a gaming operation can retain its’ charitable (501(c)(3)) status. This case gives an excellent example of some of the drawbacks of “charitable” gambling from a … Continue reading →

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Remember The Maine?

Posted on December 14, 2005 by Russ

Do you remember the Maine? For those of you who don’t remember history, the battleship USS Maine blew up in the harbor at Havana, Cuba. Even today, the cause of the explosion is still a mystery. But one thing is … Continue reading →

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More on Section 199

Posted on December 13, 2005 by Russ

Thanks to Joe Kristan of Roth Tax Updates, here is some more information on the Domestic Production Activities Deduction, aka the Deduction from Hell. The draft form is available online here. A much more technical introduction to the proposed regulations, … Continue reading →

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The Deduction From Hell (Corporate Taxes)

Posted on December 12, 2005 by Russ

Not many small businesses do their own tax returns. If they do, they’re likely to “enjoy” Form 8903, “Domestic Production Activities Deduction.” By the way, this form is not yet on the IRS’ website. The draft version of the form … Continue reading →

Posted in IRS | Tagged | 4 Comments

One Down, Two (at least) To Go

Posted on December 7, 2005 by Russ

Yesterday John Campbell (R-Irvine) won the race to replace Christopher Cox as Congressman for the 48th Congressional District. Chris Cox is now the head of the SEC. As mentioned previously, voters in the same area of Orange County now face … Continue reading →

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