- The Consequences of Earned Income Credit Abuse
- February 25, 2011
- A couple of weeks ago I received a call from a single mother who needed some help. This mother had no filing requirement, so she had decided to let the father of her child claim the child on his tax return. When the father went to file his taxes, however, the return was rejected. The reason is that someone had already filed a tax return claiming the child as their own. When I spoke to the mother, she was fairly certain who had inappropriately and illegally claimed her child, but was not certain. Regardless, that person absolutely should not have claimed the child, but did so anyway.
- Ordinary & Necessary Business Deductions
- November 24, 2010
Due to a heavy case-load this week and with Thanksgiving tomorrow, this post will be more information than analysis, but hopefully useful for those looking for information on deductible business expenses.
One might initially think it unfortunate that a comprehensive list detailing all the potential deductible expenses does not exist. Keep in mind, however, that businesses vary, so business expenses will vary as well. The truth is that not having such a list is actually a good thing because it gives businesses more flexibility in deducting expenses. The key for businesses lies in justifying their particular “ordinary” and “necessary” expenses.
- Business Use of Home Office Tax Deductions
- November 15, 2010
For this week’s post, I would like to share some basic information on qualifying a home office as the principal place of business. The advantage to doing this comes in the form of allowable tax deductions for business use of the home. Before I begin, please note that there are other ways to qualify for business use of the home deductions, such as storing inventory or using the home as a day care facility, but I want limit the scope of this post to how the vast majority of eligible taxpayers might qualify their home office as a principal place of business.
- Health Care Overhaul & Real Estate Taxes
- November 8, 2010
- The topic for this post comes courtesy of my mother-in-law who wanted to know how the new healthcare overhaul might affect sales of residential real estate. As I hope to explain in this post, the new healthcare law does not directly impose a tax on sales of residential real estate, but instead imposes a tax on certain investment income, which in real estate parlance is the capital gain, if any, from the sale of real property. For the purposes of this post, we will focus on a taxpayer’s principal residence.Laying the Groundwork
- Prop A’s Passage – Effect & Next Step
- November 5, 2010
- This past Tuesday, voters in Missouri overwhelmingly passed Proposition A.1 Since then I have had a couple of people ask me two questions – What does that mean and what now? Before I begin, let me add a small disclaimer that this answer does not take into account any action in the courts, either pending2 or contemplated, that could potentially change Proposition A’s effects.
- The Taxman Cometh
- October 25, 2010
- If I asked you to write down a list of life’s major moments, what would make the list? Did marriage or the birth of your children make it? How about college graduation or your first-home purchase? Rightfully so, such events give cause for celebration and the gathering of friends and family. Often, however, another guest hears about the party. Welcome or not, the Taxman is coming.
- It’s Gametime!
- October 19, 2010
- Thank you for visiting The Alexander Law Firm, LLC. Construction of the website is finished. The next phase is the gradual addition of information and resources through multiple forms of media. My goal is to make this site a resource for visitors and clients alike, so feel free to contact me with comments or suggestions. Have a tax or small-business question? I might just make it the topic of my next blog entry.