Those no longer able to drive cars will be pleased to learn that a golf cart can be exempt as a “motor vehicle,” at least in Oklahoma. Bankruptcy Judge Janice D Loyd of Oklahoma City said that hers was the first opinion in the country to take on the exemption status of a golf cart. Her opinion, however, does not say whether a golf cart would remain exempt if it were actually used to pay golf. She also does not state whether or not a golf cart would be exempt if it were electric-powered.
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The owner of a Peculiar, Mo., business pleaded guilty in federal court to tax evasion. Jason Rigoli, 42, waived his right to a grand jury and pleaded guilty before U.S. District Judge Stephen R. Bough to a federal information that charges him with one count of tax evasion.
Rigoli, who has owned and operated Granite Construction Services, LLC, since 2006, admitted that he has not filed a federal personal, business, or employment tax return since at least 2013. Rigoli also failed to pay state income taxes, state employment taxes, workers’ compensation taxes and unemployment taxes. As part of his scheme, Rigoli used his business bank accounts for all his personal expenses. Rigoli used proceeds of his tax fraud to pay for travel, restaurant meals, and liquor. Rigoli falsely told IRS agents that he always paid his employees by check. Rigoli also falsely told IRS agents that he paid his employees “by 1099,” when in fact, Rigoli often paid employees with cash and filed no Forms W-2 or Forms 1099 for his employees.
Under the terms of the plea agreement, Rigoli must pay restitution to the IRS in the amount to be determined by the court at sentencing. Rigoli must pay $10,188 in restitution for unpaid employment taxes. The government may argue at the time of sentencing that the attempted loss from Rigoli’s criminal scheme totaled $250,000 to $550,000. Under federal statutes, Rigoli is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
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A used car salesman from Imperial, Missouri, appeared in federal court and confessed to hiding over $300,000 in sales commissions from the IRS. Prosecutors with the U.S. Attorney’s Office for the Eastern District of Missouri said Donald Benck pleaded guilty to three counts of making a false statement on an income tax return. Between 2014 and 2016, Benck recruited acquaintances to collect commissions by check, which they’d cash in and give that money to Benck. His acquaintances would then keep a small fee for themselves. The checks the acquaintances cashed add up to about $326,000 in checks.
Benck’s employer gave 1099 forms to his acquaintances since Benck did not report the income on his tax returns or notify his tax return preparer of the commissions. According to the prosecutors, Benck underreported his income on 1040 forms for 2014-2016. Benck declined to document $31,300 of his income in the 2014 tax year, $131,400 for 2015, and $93,035 for 2016. As a result, the IRS reported a tax loss of $84,092. Benck’s sentencing is set for November 18.
Anyone pursuing higher education, including specialized job training and grad school, knows it can be pricey. Eligible taxpayers who paid higher education costs for themselves, their spouse or dependents in 2021 may be able to take advantage of two education tax credits. The American opportunity tax credit and the lifetime learning credit can help offset education costs by reducing the amount of tax they owe. If the American opportunity tax credit reduces the tax to zero, the taxpayer could receive a refund up to $1,000.
To be eligible to claim either of these credits, a taxpayer or a dependent must have received a Form 1098-T, Tuition Statement, from an eligible educational institution. However, there are exceptions for some students. To claim either credit, taxpayers must complete Form 8863, Education Credits, and file it with their tax return.
Here are some key things taxpayers should know about each of these credits.
The American opportunity tax credit is:
Worth a maximum benefit of up to $2,500 per eligible student
Only available for the first four years at a post-secondary or vocational school
For students pursuing a degree or other recognized education credential
Partially refundable; Taxpayers could get up to $1,000 back
The lifetime learning credit is:
Worth a maximum benefit of up to $2,000 per tax return, per year, no matter how many students qualify
Available for all years of postsecondary education and for courses to acquire or improve job skills
Available for an unlimited number of tax years
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As the new school year begins, the Internal Revenue Service reminds teachers and other educators that they’ll be able to deduct up to $300 of out-of-pocket classroom expenses for 2022 when they file their federal income tax return next year.
Courtesy of the Internal Revenue Service
This is the first time the annual limit has increased since the special educator expense deduction was enacted in 2002. For tax years 2002 through 2021, the limit was $250 per year. The limit will rise in $50 increments in future years based on inflation adjustments.
For 2022, an eligible educator can deduct up to $300 of qualifying expenses. If they’re married and file a joint return with another eligible educator, the limit rises to $600. But in this situation, not more than $300 for each spouse.
Who qualifies? Educators can claim this deduction, even if they take the standard deduction. Eligible educators include anyone who is a kindergarten through grade 12 teacher, instructor, counselor, principal or aide in a school for at least 900 hours during the school year. Both public and private school educators qualify.
What’s deductible? Educators can deduct the unreimbursed cost of:
Books, supplies and other materials used in the classroom.
Equipment, including computer equipment, software and services.
COVID-19 protective items to stop the spread of the disease in the classroom. This includes face masks, disinfectant for use against COVID-19, hand soap, hand sanitizer, disposable gloves, tape, paint or chalk to guide social distancing, physical barriers, such as clear plexiglass, air purifiers and other items recommended by the Centers for Disease Control and Prevention.
Professional development courses related to the curriculum they teach or the students they teach. But the IRS cautions that, for these expenses, it may be more beneficial to claim another educational tax benefit, especially the lifetime learning credit. For details, see Publication 970, Tax Benefits for Education, particularly Chapter 3.
Qualified expenses don’t include the cost of home schooling or for nonathletic supplies for courses in health or physical education. As with all deductions and credits, the IRS reminds educators to keep good records, including receipts, cancelled checks and other documentation.
Reminder for 2021 tax returns being filed now: Deduction limit is $250 For those who received a tax filing extension or still need to file a 2021 tax return, the IRS reminds any educator still working on their 2021 return that the deduction limit is $250. If they are married and file a joint return with another eligible educator, the limit rises to $500. But in this situation, not more than $250 for each spouse.
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The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning Oct. 1, 2022.
For individuals, the rate for overpayments and underpayments will be 6% per year, compounded daily, up from 5% for the quarter that began on July 1. Here is a complete list of the new rates:
6% for overpayments [5% for corporations]. (payments made in excess of the amount owed)
5% for the portion of a corporate overpayment exceeding $10,000.
6% for underpayments. (taxes owed but not fully paid)
8% for large corporate underpayments.
Courtesy of the Internal Revenue Service
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. Generally, for a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points, and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
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Americans added an additional $46 billion to their credit card debt during the second quarter amid the ongoing decades-high inflation. Balances saw the most severe increase in over 20 years, according to the Federal Reserve Bank of New York. Credit card debts grew 5.5% from the first to second quarters and 13% year-over-year. The report indicates that Americans are experiencing extreme financial hardship as talk of a potential recession persists and borrowing costs and debts continue to climb. Overall, American’s mortgage and non-mortgage debt increased by $312 billion during the second quarter. This marks the most substantial nominal increase since 2016, according to a New York Fed statement.
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With exceptions inapplicable to the action, appeal is possible only upon final judgment, which is the judgment that resolves all issues as to all parties. That question is for an appellate court to determine without regard to the parties’ or circuit court’s perceptions. Plaintiff filed an action in circuit court, including a claim for breach of fiduciary duty, and then filed Chapter 7 bankruptcy. In bankruptcy, the claim for breach of fiduciary duty was not scheduled, not administered, and not abandoned.
Claimant settled an earlier claim for repetitive injury to the “left upper extremity [,]” then made a later claim related to claimant’s left wrist, which the Labor and Industrial Relations Commission denied because of the settlement. Claimant challenged that conclusion of law as if it were a finding of fact, and so used an inapplicable analysis, but the Court of Appeals can nonetheless discern the challenge raised in claimant’s brief. The settlement “included pain in the left shoulder and numbness and tingling in the left hand, both of which are anatomical components of the left upper extremity [,]” and medical evidence showed that the wrist injury had the same cause as the rest of the earlier claim. The Commission did not err in concluding that the Commission had no authority over the later claim. Ronald Lamy vs. Stahl Specialty Company (Overview Summary) Missouri Court of Appeals, Western District – WD85163
Real property lease included an option for lessee to renew, which required lessee’s notice of intent to renew six months before the lease terms’ expiration. After the lease’s expiration, lessee continued to pay, and lessor to accept, rents before lessor filed an action for unlawful detainer. “By remaining in possession and paying rent after the expiration of the lease, the lessee elects to exercise the option [while, s]imply by accepting rent, the lessor waives the written notice requirement” for the entire term even if the amount does not cover the entire term. Evidence that lessee did not provide the required notice, and lessor’s statement to lessee about that fact, are therefore irrelevant. An appellate court need not review multifarious points relied on. Circuit court’s judgment for lessee affirmed. Eighty Hundred Clayton Corp., Respondent, vs. Lake Forest Development Corp., Appellant. (Overview Summary) Missouri Court of Appeals, Eastern District – ED110390
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