Read more background and content in the original article posted at http://www.accountingweb.com/topic/tax/2009-recap-celebrities-tax-woes
Duane “Dog” Chapman, A&E reality show, Dog and the Bounty Hunter
Radio and TV host, Alexis Stewart, daughter of Martha Stewart
Survivor winner Richard Hatch
Actors Nicolas Cage and Val Kilmer
Miguel Ferrer (RoboCop) [6]
Chris Tucker [7]
Robin Givens [8]
Hip Hop group Blackeyed Peas
Singers Aaron Carter, Foxy Brown and Toni Braxton
Rappers Method Man, Nas and DMX
Race car driver Helio Castroneves
Pro golfer Jim Thorpe
Boxer Floyd Mayweather
Other sports figures: Ron Darling, Jerry Koosman, Darren McCarty, Julio Cesar Chavez, Michael Vick, and Diego Armando Maradona
Photographer Annie Liebovitz
Politicians Timothy Geithner, Tom Daschle, Nancy Killefer, Al Franken, John Kerry and California governor, Arnold Schwarzenegger.
Most of these people have the wherewithal to fight the IRS. You probably don't. That's why legitimate tax strategies - done right the first time - are so important. Be certain that you rely only on proven, legal tactics (not scams, not off-shore trusts) backed up by court cases and IRS regs.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Sooner implementation will result in greater savings, so act now!
The IRS admits that American taxpayers leave money on the table. Planning to pay less taxes is legal and prudent. Depending upon your goals, career, income, investments, age and family circumstances, I can devise and help you implement strategies that legally reduce your tax payments, so you can stop wasting money on taxes you are not required to pay. Instead, you can put those dollars into education, savings, investments, home improvement, vacations or spend them as you choose.
12/26/09
What documentation do you need, in order to deduct the business use of
- cell phones and similar telecommunications equipment?
- passenger automobiles and trucks?
- home computers and peripherals?
- cameras?
- audio-visual recorders and players?
- other property of a type generally used for entertainment, recreation or amusement?
The above are examples of "Listed Property," which means that the IRS finds them susceptible to non-deductible personal use. The business use of Listed Property is subject to stringent documentation requirements in order to be deductible. The personal use is not deductible.
The required documentation is 1) the amount of the expense, 2) the time and place of the use of the listed property, and 3) the business purposes of the use. In addition, the total non-business use must be identifiable, even if each personal use is not documented.
For cell phones, itemized call lists from the service provider, while not conclusive, are the beginning of the required documentation. These need to be expanded with notations that document the purpose of each business call.
Most of us are familiar with logging requirements for passenger autos and trucks and the mileage books that help document business use. A similar log for the business use of a camera or a/v equipment will meet the strict requirements.
Obviously, this process is burdensome. Nevertheless, Listed Property has been singled out by the IRS as needing special documentation to substantiate and defend a tax deduction for business use.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, but implementation at any time starts saving you money, so act now!
- cell phones and similar telecommunications equipment?
- passenger automobiles and trucks?
- home computers and peripherals?
- cameras?
- audio-visual recorders and players?
- other property of a type generally used for entertainment, recreation or amusement?
The above are examples of "Listed Property," which means that the IRS finds them susceptible to non-deductible personal use. The business use of Listed Property is subject to stringent documentation requirements in order to be deductible. The personal use is not deductible.
The required documentation is 1) the amount of the expense, 2) the time and place of the use of the listed property, and 3) the business purposes of the use. In addition, the total non-business use must be identifiable, even if each personal use is not documented.
For cell phones, itemized call lists from the service provider, while not conclusive, are the beginning of the required documentation. These need to be expanded with notations that document the purpose of each business call.
Most of us are familiar with logging requirements for passenger autos and trucks and the mileage books that help document business use. A similar log for the business use of a camera or a/v equipment will meet the strict requirements.
Obviously, this process is burdensome. Nevertheless, Listed Property has been singled out by the IRS as needing special documentation to substantiate and defend a tax deduction for business use.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, but implementation at any time starts saving you money, so act now!
12/19/09
States scraping for additional tax revenue from non-filers
As an example, effective Jan. 1, 2010, Indiana will allow for a penalty of $10 per day (to a maximum of $500) to be assessed on taxpayers that fail to file an annual individual income-tax return — even if they do not owe tax or are due a refund. Indiana has required taxpayers to file an individual income tax return under these circumstances for decades. However, the possibility of a penalty being assessed is new.
The State says the penalty will not be automatically assessed on taxpayers who have acted on their own to file voluntarily after the annual filing deadline. However, if the Department identifies a non-filer through its own cross-checks and other discovery methods, a penalty will be assessed.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
The State says the penalty will not be automatically assessed on taxpayers who have acted on their own to file voluntarily after the annual filing deadline. However, if the Department identifies a non-filer through its own cross-checks and other discovery methods, a penalty will be assessed.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
12/1/09
Pick your poison - paying your taxes with credit or debit cards
If a taxpayer is paying tax liabilities with a credit card, he probably has not strategically planned for reducing his taxes. Sometimes, however, this method of payment may be the only way to pay the taxes. The companies that process the payment charge the taxpayer a convenience fee of 2.49% of the tax payment for credit card payments. That's a $25 fee on a $1,000 tax bill.
The same service providers process debit card payments of tax liabilities, but for those they charge only a flat fee of $3.95, regardless of the amount of the tax payment.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
The same service providers process debit card payments of tax liabilities, but for those they charge only a flat fee of $3.95, regardless of the amount of the tax payment.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!