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Posts Tagged ‘Tax’

Deductible Muscles

November 15th, 2017

Wheir was a body builder who attempted to deduct some body building expenses because he believed he was in the business of body building. Some of his expenses included bison meat, which he ate at the rate of 3 pounds per day, vitamins, protein shakes, body sprays, massage oils, and body building outfits.

The IRS argued that Wheir’s body building was a personal activity and was not a business of any sort and therefor none of the items were deductible.

The Tax Court ruled party in favor of the IRS, stating that the bison mean and protein shakes were not deductible because both of those items could be consumed by the general public and therefor were considered everyday food items.

However, the Tax Court also ruled partly in favor of Wheir, stating that the cost of the lotions and oils were deductible because those certain products were only available to body builders through a body building magazine and therefore were not generally available to the public. The Tax Court also ruled that the body building outfits were deductible because they were not suitable for normal wear and were an ordinary and necessary expense for body building.

If you are having trouble with the IRS and tax deductions, give us a call at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

Honey, Did You Pay the Babysitter

July 7th, 2017

babysitter

Wouldn’t it be nice if the IRS allowed a deduction so that you and your spouse can go on a date night? Well they don’t. But one woman, in Kingsley v Commissioner, was allowed a deduction for paying a babysitter while she performed charity work. Babysitting fees were deductible when the baby sitter was hired so that the taxpayer could do volunteer work for a charity. This is contrary to the IRS position on the issue which states that such a deduction is now allowable. If you are going to try, the services must have been for a qualified charitable organization and you can’t be reimbursed for your expenses.

If you are having tax issues you can contact us by phone at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

Circus Camp

July 6th, 2017

circus

As any parent knows, kids are expensive especially once they can walk, talk, and play sports or other extracurricular activities. To help with these expenses, the government offers the Child and Dependent Care Credit. This credit is up to $1,050 for one qualifying person or $2,100 for two kids. It is important to know that you don’t have to spend money on both kids to get the full credit. so if one kid spends summer with grandma (free!) and the other spends it at that pricey circus camp they have been dying to go to, you may be able to get the full $2,100 credit.

To qualify, the expense must be incurred for a dependent under age 13, or in some limited instances, a disabled person. the care must have been incurred so that you and your spouse (if married) can work or look for work. Lucky for those parents looking to raise the next superstar athlete, sports camps count if those requirements are met.

If you have any questions about the Child and Dependent Care Credit give us a call at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

Home from Colorado

July 5th, 2017

kansas drug tax stamp

 

Kansas, like several others, actually imposes a tax on the purchase or possession of a controlled substance within the state of Kansas. When the drug dealer pays the tax, they are given a special stamp to attach to the drugs. the stamps are valid for three months. The stamps can be purchased in advance.

If the dealer is found with any drugs that don’t have a valid stamp, they can be subject to penalties for failing to have a valid stamp. These penalties can include fines, seizure of property, or liens against real estate, and, here’s the real kicker, possession of valid stamps don’t make possession of the drugs legal so the dealer can be prosecuted for possession or sale of the drugs even if they have the proper stamps.

If you are having tax issues you can contact us by phone at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

It’s a Girl

March 2nd, 2017

egg donors

Egg donors have to go through a barrage of tests and hormone therapies and as such are compensated rather well. The payout for enduring the process generally runs around $50,000 for those who make it through. In Perez v. Commissioner the tax court finally made a definitive ruling that this money is taxable. Perez tried to argue that the payment was for pain and suffering and thus excludable under Internal Revenue Code Section 104 as a payment for physical injury.

For all you tax buffs it is important to note what the case was not about. It was not a case to determine the tax treatment of selling her eggs. Perez was compensated for her time and would have been paid regardless of whether there was a successful donation. Though income from donating other items such as plasma is taxable.

If you need help with your taxes, contact us at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

You’ve Won a New Car

February 27th, 2017

new car

If you win the prize on a game show in California you have to pay a 10% withholding tax at the conclusion of the filming of the show. So if you didn’t win cash or bring a stack of hundreds with you it may be necessary to sell the prize on the spot. However, if you sell the prize before you use it you can probably claim whatever you sold it back for as the value for income tax purposes. On the other hand, if you use the prize at all you will have to claim the full retail price as the value even if you sell it for significantly less the next day.

If you have tax questions, give us a call at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

Pirate treasure and other found money

February 23rd, 2017

treasure

Unlike the pirates of the past who were stealing from the Spanish crown, any U.S. taxpayer who finds buried loot will have to pay income taxes on it. This was established in Cesarini v. United States.

Mr. Cesarini bought a used piano for $15 and found nearly $5,000 in cash inside. The IRS said that his treasure trove was part of his gross income citing I.R.C. Section 61 and taxed it. Mr. Cesarini had his day in court, but lost. He also lost when he took the case to the Sixth Circuit Court of appeals.

If you need tax help, contact our office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

Camron Hoorfar is named 2017 Lawyer of Distinction

January 5th, 2017

lawyers-of-distinction

Based upon Camron Hoorfar’s Avvo.com rating and numerous favorable reviews, Lawyers of Distinction has named Camron Hoorfar a 2017 Lawyer of Distinction. This award is generally given to the top ten percent (10%) of attorneys in the area.

If you are interested in speaking with Camron, contact our law office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

Missouri Use Tax

June 23rd, 2016

use tax

Be careful what you buy on Amazon and other online stores! All tangible personal property that you store, use, or consume in the state of Missouri is subject to a use tax. It does not apply, however, to goods that have been purchased through a Missouri retailer and been subjected to the state sales tax. The taxable amount is the sales price plus any service charges that are considered to be part of the sale. The intent of the parties to the sale determines whether or not a service charge is considered part of the sale. If you have tax trouble, contact our office at 816-524-4949 or check out our website at Hoorfarlaw.com.

Judges Have to Pay Their Taxes Too

June 20th, 2016

judges

A former U.S. Tax Court Judge and her husband have been indicted for obstructing an IRS audit and conspiracy to evade taxes of more than $400,000. It was found that for part of her term, Diane Kroupa and her husband claimed multiple vacations, wine club fees, spa trips, vacation home expenses and much more as business expenses for their consulting company, Grassroots Consulting. Both are now charged with conspiracy, tax evasion, making and subscribing false tax returns, and obstruction of an IRS audit. Just a friendly reminder that reporting personal expenses as business expenses on your tax return is illegal, regardless of your job position. If you are in tax trouble, contact our office at 816-524-4949 or check out our website at Hoorfarlaw.com.