Divorces by Older Folks – By John R. Bullis

Kim Pilant John's Articles

Divorce rates for folks over age 50 are increasing. That leaves less time to adjust and recover both financially and emotionally. Older folks may have decided they don’t want to live the next 20 or more years with someone they don’t love. Sometimes they have just “grown apart” and want to do life differently. It is estimated about 80% of …

Miscellaneous Deductions for Non-Grantor Trusts and Estates – By John R. Bullis

Kim Pilant John's Articles

Beginning in 2018, individual taxpayers do NOT get deductions for miscellaneous itemized deductions on Schedule A of form 1040. The Tax Cuts and Jobs Act of Dec. 22, 2017 eliminated those deductions for individuals. However, Trusts that are not Grantor Trusts for an individual still living (known as Non Grantor Trusts-Trusts for after the grantor’s death) and Estates are allowed …

Planning a Successful Retirement – By John R. Bullis

Kim Pilant John's Articles

The traditional retirement planning is not helping folks develop a written plan for non-financial aspects according to Robert Laura. Traditional planning is getting the Will and Power of Attorney forms with Trusts in some cases, all to reduce taxes and plan for distribution of assets. What is also important is to do a written retirement plan for non-financial aspects. He …

Fraudulent Form 1099-Misc Damages – By John R. Bullis

Kim Pilant John's Articles

Dr. Nicholas Angelopoulos (Dr. Nick) received an IRS Notice in 2011 for additional income taxes in 2007 based on form 1099-MISC sent to him. The form showed $159,000 as taxable income to him, but it should have been about $38,000. Dr. Nick sued his former partners in district court for issuing a fraudulent form 1099-MISC with intent to cause him …

When Does a Business Activity Begin – By John R. Bullis, CPA

Kim Pilant John's Articles

Tax Code Section 195 covers when a business begins and when the expenses are deductible. Mr. H. Samadi claimed business driving expenses in 2013 and 2014 in his “real estate sales” business. He did not make any commissions as a licensed real estate salesman in years 2013 and 2014. He did drive from his brother’s home in Marina to Sacramento …

Property Manage Held to be Employee – By John R. Bullis

Kim Pilant John's Articles

In a Tax Court Memo Decision, the property manager of a 60 unit apartment complex was found to be an employee, not an independent contractor. The owner, Hampton Software Development LLC (Hampton) did not issue form 1099-MISC or any other 1099 form to the manager. Mr. Herndon, for the $2,000 per month he was paid. The court looked at various …

Net Investment Income Tax – By John R. Bullis

Kim Pilant John's Articles

It is bad enough to pay income tax but Form 8960, Net Investment Income Tax for Individuals, Estates and Trust is an additional amount to pay in certain circumstances. That form computes the extra 3.8% Medicare tax that applies if the “passive income from interest, dividends, annuities, and some rental income, royalties, some partnership, S corporation and trust income that …