Archive for Milton Boothe

How To Qualify For Exempt Under The Affordable Care Act (Obamacare)

Under the Affordable Care Act, individuals must fall into one of the following 3 categories: (1) Those who have qualifying health insurance (minimum essential coverage), (2) those who qualify for an exemption from the responsibility to have minimum essential coverage, or (3) those who are required to make the shared responsibility payment (penalty) when they file their federal income tax return.
Those who fall in category 2 are exempt from the requirement to maintain minimum essential coverage and thus will not have to make a shared responsibility payment (penalty) when they file their federal income tax return.

Generally, you may be exempt if you: (a) have no affordable coverage options because the minimum amount you must pay for the annual premiums is more than eight percent of Read More

Written by | Posted in Affordable Healthcare Act

If The IRS Sends You A Bill That You Can’t Pay… Please Don’t Have A Heart Attack!

A few years ago, a client came to me almost at the point of a nervous breakdown. He had been recently audited by the IRS and subsequently received a tax bill in the mail for over $180,000! After briefly perusing the documents he brought in, I quickly realized that something was significantly amiss with this tax bill. So I advised him not to panic, but to leave his documents with me. After comparing the audit adjustments with his documents, I decided that we had to go and pay the IRS a visit.

A couple weeks later, we were sitting down with the officer who had conducted the audit and his manager, and after reviewing the audit adjustments together, the amount originally assessed was eventually cut in half. The audit officer, who appeared to be a rookie, had apparently done a very poor job. Read More

Written by | Posted in Individual • IRS • Tax Controversy

Tax Advantages of Investing In Real Estate

As the economy shows signs of improvement, with the stock market rebounding and unemployment falling steadily, it is only reasonable to believe, all thing being equal, that the housing market will also rebound, and will once again become a very viable investment vehicle. There are a number of distinct tax advantages to be derived from investing in real estate, and this article will look at some of these advantages. For both middle and high-income individuals alike, the tax advantages of investing in real estate can be substantial. Some of the advantages are as follows:

Depreciation:

The IRS allows investors to depreciate (deduct from rental income) the cost of a residential rental building over a period of 27.5 years, and 39 years for nonresidential Read More

Written by | Posted in Capital Gains • Real Estate

The IRS Does NOT Make Threatening Telephone Calls—Beware of The Scammers!

As the tax season heats up, so does the activity of the scammers. These scammers, who feed on people’s innate fear of the IRS, use this opportunity to place themselves right at the top of their game. I have heard of many instances of people receiving calls from individuals purporting to be IRS officers, who are making demands for payment of taxes on underreported income, and threatening imprisonment and/or seizure of assets if you do not comply with their demands. Also, they seek to obtain your personal information in the process.

Allow me to state categorically that these people are NOT IRS officers! When the IRS raises an assessment, they NEVER contact you initially by telephone. The typical MO of the IRS is to send you a written notice in the mail. This notice gives you the opportunity Read More

Written by | Posted in IRS • Tax Fraud/Evasion/Crimes • Tax Tips

A Dozen Plus Reasons Why You Should Do Your Own Taxes

Scott Brown (not his real name), an associate of mine, is the owner of a single member LLC. Scott who files a Schedule A, Schedule C, Schedule D (stock trading), and Schedule E, has previously had his taxes done at H & R Block. But Scott became quite disappointed with Block’s services, when I pointed out to him that he was not receiving his annual depreciation deductions. Consequently, I encouraged him to purchase a copy of the e-book “Doing Your Own Taxes is as Easy as 1,2,3,” for tax year 2013. Disgruntled with his tax preparer, Scott finally decided to take the plunge and do his own taxes.

Scott also purchased a popular tax software, and using it in conjunction with the e-book, he quickly realized that doing his own taxes was not quite as difficult as he’d always perceived it to be. Read More

Written by | Posted in Tax Tips
  Recent Entries »