This article in AccountingWeb by Julian Block talks about some things the IRS looks at to differentiate a loan from a gift, especially between related parties. Click on the link here: http://www.accountingweb.com/article/how-irs-tells-loan-gift/223342 There is a lesson here – make sure you document any loan you make with a note, including interest rates and repayment schedules. This will help keep the IRS from calling the loan a gift. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Tax Musings of a Burbank CPA: IRS Made Improper EITC Payments of $13.3-$15.6 Billion
This is getting a little crazy – everybody in Congress and the White House has been talking about tax fraud and the IRS still can’t put out a reasonable program to check Earned Income Tax Credit refund requests before sending out the money. Oh yeah, later they find they paid out money to unqualified people, either through mistakes or fraud. See the update in AccountingToday by Michael Cohn: http://www.accountingtoday.com/news/irs_watch/irs-made-improper-eitc-payments-of-133-156-billion-70631-1.html There has got to be something else in place – the problem is it is politically important to send out tax refunds quickly to people so only the most superficial inspection is done before the money is sent, either through checks, debit cards or direct deposit, making this type of fraud easy to do. Come on guys, let’s do a little more checking before paying this money out! For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Burbank CPA Musings: Is An MBA Degree Tax Deductible? It Depends.
So, is there a time when an advanced degree can be a deductible business expense? Yes, it can be. It depends on certain factors (or a combination). See this article by Ken Berry in CPA Practice Advisor for more details: http://www.cpapracticeadvisor.com/news/11440215/is-an-mba-degree-tax-deductible-it-depends The interesting part of all this is that courts have both allowed and disallowed a deduction, depending on circumstances, so it really is on a case by case basis. Most importantly, if it is not required by your employer or qualifies you for a new profession, it probably will not be deductible. But if it just sharpens skills you already need in your job, you might have a tax writeoff. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa