Monthly Archives: January 2014

Family Mortgages Come Under IRS Scrutiny

The IRS insists that i’s must be dotted and t’s crossed before the IRS will allow taxpayers to deduct mortgage interest on a “qualified residence.”  If the formalities are not observed, the debtor may be denied a deduction while the creditor must nonetheless report the interest payments


Beanie Baby Creator Avoids Jail Time, Pays Steep Penalties for Undisclosed Offshore Accounts

On January 14, 2014, Beanie Baby creator H. Ty Warner was sentenced to two years of probation and 500 hours of community service resulting from his guilty plea for tax evasion.  In addition, Warner was required to pay approximately $16 million in back taxes and interest and


Appraiser’s Error Results in Severe Penalties For Taxpayers who Convey Conservation Easement

In November 2013, the United States Tax Court upheld the charitable deduction for a conservation easement claimed on the taxpayers’ income tax return but reduced its value and upheld the 40 percent gross valuation misstatement penalty.

In 2006, taxpayers George Gorra, a real estate professional, and Leila Gorra, ...