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When a husband says, “We are partners,” what does he REALLY mean?
The husband ran a successful medical practice earning over $650,000 in gross income. He employed his wife as a sales representative and paid her a little over $30,000/year. The couple had four small children. The wife didn’t participate in her husband’s meeting over finances and management.
The IRS found that the medical practice underreported its income by over $100,000. Over $40,000 tax liability notice of deficiency was mailed to the couple. The couple also faced a significant penalty for the underreporting/ underpayment.

Inventory
How Cost of Gods Sold Affects Income & Tax Bracket An increase in the Beginning Inventory decreases?income for the year. An increase in the Ending Inventory increases?income for the year. An increase in Beginning Inventory means that you will pay tax on the sale of that inventory?later?(when you sell it). An increase in the Ending…
Tax Implications When Foreigners Investing In Real Estate in the US
Tax Implications When Foreigners Investing In Real Estate in the US The tax would be reported to the US because the property is located in the US. Under the treaty, it states ARTICLE 6 Income from Real Property1. Income derived by a resident of a Contracting State from real property (including income from agriculture or…
Foreigners Investing in US Real Estate
Common errors investors make: Realtors are usually not familiar with tax requirements regarding foreigners. When a foreigner is looking to invest in Real estate in the US, the first thing I notice is that the tax system at where they are from is much different from the system in the US.? Under Code Section 1445,…

Investment Strategy
Investment Strategy. Options. Important. This post is NOT investment advice. Investments in Etrade options are NOT FDIC-insured and may lose value all the way to $0. Buying puts/shorting a stock has severe or unlimited risks. Day trading option has very big leverage and serious potential to profit (or to lose money). One of my favorite…

IRS’ application of petitioner’s remittance after the tax liabilities has been assessed constituted a payment of that tax liability.
On December 28th, 2021 the US Tax Court reviewed and decided whether “the taxpayer has paid more than was owed, where such a determination is necessary for a correct and complete determination of whether the proposed collection action should proceed”. (per T.C. Memo. 2021-142 UNITED STATES TAX COURT Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent…