Decisions — Taking Credit

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Section 25A of the current internal revenue code provides two education credits–the American opportunity credit and the lifetime learning credit. When you meet a variety of conditions and limitations, you can claim these credits against your federal income tax liability for qualified tuition and related expenses paid to an eligible education institution.

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Definition — Really Recognized

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Do you realize when you have to recognize income?

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Decisions — Bargaining for a Deduction

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While a bargain may be defined as something you can’t use at a price you can’t resist, in tax law, a bargain sale generally yields something you can use: a charitable deduction.

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Decisions — Respectfully Yours

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You may think of inheritances as tax-free. But in some cases—such as traditional individual retirement accounts—your inheritance includes what’s called “income in respect of a decedent.”

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Decisions — Forgiven

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In tax law, to err is easy; to forgive generally creates income.

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Decisions — Taxing the Selfie

Image source: By NASA/JPL-Caltech/Malin Space Science Systems. Derivative work including colour correction, correction of dark areas and vignette, denoising: Julian Herzog ( [Public domain], via Wikimedia Commons

You’ve heard, time and again, that rental activities are passive under the passive activity loss rules in internal revenue code section 469. That’s true, except when it isn’t.

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Case — Crummey Illusion

TL Case Summ

THE QUESTION: Are a trust’s Crummey provisions illusory?

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Decisions — Do You Know Where You’re Going To?

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In tax law, the only thing transportation, travel and commuting expenses have in common is that you’re away from home when you incur them.

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Definition — An Interesting Deduction

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Did you deduct home mortgage interest on your tax return? According to the IRS statistics of income, home mortgage interest is one of the four largest itemized deductions claimed by taxpayers.

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Definition — Recovering the Benefit

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The tax benefit rule (section 111) is a seemingly simple common sense attempt at equity that turns out to be a bit complicated in practice.

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Useful Tax Law Links

US Tax Code- Cornell University Law School Legal Information Institute. Searchable. - Office of the Law Revision Counsel. Searchable. Downloadable.

US Tax Court - TC Opinions, Memorandum Opinions, Summary Opinions. Searchable. Downloadable.

Treasury Regulations - Government Printing Office provides the Federal Tax Regulations. Searchable. Downloadable.

Other Official US Tax Guidance - US Internal Revenue Service. Searchable. Downloadable.

Useful Downloads by Taxing Lessons

Foreign Earned Income Exclusion - free PDF - Graphic of Internal Revenue Code Section 911

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