Put Some 'Preparation' in Your Tax Preparation

Tuesday, January 23

Tax Preparation might be one of the least appropriately named services I know of. The definition of ‘preparation' is the action or process of making ready for an event or undertaking. In the case of tax preparation this should mean the process of making ready to pay your taxes. Unfortunately, tha...

Pride Comes Before a Fall

Sunday, December 31

My father-in-law figured out the benefits of real estate investing decades before there was a Bigger Pockets. Working as an architect in the 1960s and 70s he started a side gig purchasing single and multi-family properties around his home town of Pittsburgh. When I married his daughter in 1992 h...

We Should Be Asking Better Questions

Sunday, December 10

Should my brother travel by train?That is a very simple question, but you can’t answer it. Not in any meaningful way. It’s a yes/no question, so you could just guess, but even if you’re right we’d all know it was just a guess. If you wanted to answer that question credibly, reasonably, or authori...

Playing Chicken with the IRS

Wednesday, November 29

Sorry for the title of this post. I can't resist a good pun. (Or even a bad one!)Charles and Laura M. own a poultry farm in Texas, where they raise chickens for the third largest poultry producer in the US, Sanderson Farms. In 2005 the M’s formed an LLC (CL Farms) and elected to be taxed as an S-...

The IRS Solution - Tax it All!

Tuesday, November 21

Sometimes I learn multiple lessons from reading a single Tax Court opinion. Such was the case recently when I read the opinion from Judge Nega regarding real estate investors Steven and Stacy E (SSE). The IRS and SSE disagreed on several issues and Judge Nega had to settle these matters in Tax C...

The $300,000 Log Book

Tuesday, November 14

My previous two blog posts were about Tax Court cases that ended unhappily for the tax payers. Before everyone starts thinking Tax Court is just a place where tax payers go to get bad news let me present a case with a happy ending. Sometimes tax payers get good news at Tax Court. Such was the cas...