Contribution to Corporation, then Sale of the Corporation

Most income tax planning involves questions about income, deductions or credits, character, or timing, or some combination of these questions. When viewed from these categories, even simple transactions can present tax planning opportunities. The contribution of property to a corporation by its shareholder is an example. A contribution triggers taxable income to the shareholder. Our……

Charter Boat Expenses are Miscellaneous Itemized Deductions

We live in a complex society. Even common activities can be exceedingly complex. Take a charter boat operation, for example. One has to consider the various laws for registering the boat; laws that dictate where and when the boat can operate; the laws governing the crew and its activities; and financing and loan and insurance…Continue…

How Long Does Probate Take in Texas

Yahoo! Finance ran an article entitled “How Long Does Probate Take.” The article sets out several circumstances that can slow down the probate process. The article is not Texas-specific, so many of the circumstances do not really apply for probates in Texas or are more nuanced than mentioned in the article. The article provides an…Continue…

Probate Claim vs. Probate Administration Expense

What does Texas law say about a creditor trying to collect a debt from someone who died? You may be surprised to learn that some debts can be erased as part of the probate process, somewhat like discharging debts in bankruptcy. The case of Ullrich v. Est. of Anderson, 740 S.W.2d 481 (Tex. App.‒Houston [1st…Continue…

Rental Tax Losses for Those With Irregular Hours

Tax cases are interesting in that they apply a fairly well-developed set of rules to varying fact patterns. These varying fact patterns can result in surprising, and often unintended, consequences. The more complex the tax law in question, the more likely it is that the outcome will be something other than what Congress may have…Continue…

IRS Lien on Trust Assets

As long as the government tries to collect taxes, there will be taxpayers who try to find ways to not pay the taxes. These tax payment avoidance options often involve co-ownership of property or, in many cases, trusts. The recent United States v. Simones, No. 1:20-cv-00795-PJK-SCY (D.N.M. 2021) case shows how the IRS is able…Continue…