The Tax Professionals Blog

Reporting a Gift from a Foreign Source

Posted by Lee Reams Sr., BSME, EA on

If the value of the aggregate “foreign gifts” (described below) received by a U.S. person (other than an exempt organization) exceeds specified amounts, the U.S. person must report each foreign gift to the IRS. (Code Sec. 6039F)

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Solar Installation Battery Add-On

Posted by Lee Reams Sr., BSME, EA on

Emergency power outages imposed by utilities in high fire prone areas during periods of high winds and low humidity as well as other disaster areas can be a major inconvenience especially for those that work from home. The answer may be a solar charged battery. 

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Timing of Home Acquisition Debt Expenditures

Posted by Lee Reams Sr., BSME, EA on

When must a home purchase, construction cost or home improvement expenditures be made in order for a loan to be treated as acquisition debt?  The answer can be found In Notice 88-74 and here is what the Notice has to say on the issue:1. Acquisition - In the case of the acquisition of a residence, debt may be treated as incurred to acquire the residence to the extent of expenditures to acquire the residence made within 90 days before or after the date that the debt is incurred. 2. Construction or Substantial Improvement - In the case of the construction...

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Home Office as Qualified Property for Section 199A Purposes

Posted by Lee Reams Sr., BSME, EA on

A question was raised as to whether a home office can be included in the total of qualified property used in determining QBI when using the section 199A(b)(2)(B)(ii) 2.5% of unadjusted basis of qualified property (UBIA) limitation.

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Disaster Loss FMV Safe Harbor is Misleading

Posted by Lee Reams Sr., BSME, EA on

Rev. Proc. 2018-8 can be quite misleading. Under the “purpose” the Rev. Proc. leads the reader to believe that the Rev. Proc. provides an alternate and more taxpayer-beneficial way of determining a casualty loss. The following is an exact quote from the Rev. Proc. with the misleading wording italicized.  

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