| Prepaid Farm Expenses |
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| Generally, taxpayers who use the cash method of reporting income and expenses must take deductions and credits in the year in which they are paid. There are exceptions to this rule for tax items such as prepaid expenses, which often must be accounted for in a different year in order to more clearly reflect income. More... |
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| Early Distributions from Traditional and Roth IRAs |
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| You have been diligently putting money away in your Individual Retirement Account (IRA), but something has come up and you would really like to be able to get your hands on some of that money. However, you have heard that there are big penalties and taxes to be paid if you make a withdrawal before retirement. Should you take your money out of the retirement account, or should you borrow it from the bank? More... |
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| Tax Court |
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| The main purpose of the Tax Court is to give the taxpayer an opportunity to be heard before he or she is compelled to pay any tax within the Court's jurisdiction, including income, estate, gift, self-employment, or special excise taxes. When a taxpayer receives a notice of deficiency from the Internal Revenue Service, he or she may decline to pay the tax and may petition the Tax Court to review the deficiency. The Tax Court is the only judicial body from which a taxpayer may obtain relief without the payment of taxes. More... |
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| Circulation Costs |
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| If you are the publisher of a newspaper, magazine, or other periodical, you can deduct the costs of establishing, maintaining, or increasing circulation as a current business expense. However, this general rule of deductibility is limited. A current deduction is not available for expenditures for the purchase of land or depreciable property or for the acquisition of circulation through the purchase of any part of the business of another publisher. In addition, a deduction is not permitted for the cost of purchasing another publisher's list of subscribers. These expenditures must be capitalized. More... |
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| Workers' Compensation Benefits |
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| If you are an employee who receives benefits under a workers' compensation act for personal injuries or sickness incurred in the course of employment, you do not have to include those benefits in your gross income for federal income tax purposes. In addition, if you are the survivor of an employee who died of injuries sustained during the course of employment, you are not required to add the benefits paid to you under a workers' compensation act to your gross income. Benefits are excludable even if the injury to an employee is not permanent and the employee is not totally disabled. More... |
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