Financial Advisory Tax Service Management Services
Putney-Klein Special Reports
IRS Attacks Rental Real Estate Losses
Starting this year the IRS is beginning a new audit program that focuses on rental real losses. Why now, you ask? Because of a 2008 Government Accountability Office study that reported that at least 53% of individual taxpayer’s with rental real estate activity misreported their rental real estate activity, resulting in an estimated $12.4 billion of underreported income.
That report spurred the Treasury Inspector General for Tax Administration (TIGTA), an independent overseer, to evaluate how the IRS covers individual tax returns with rental real estate activity and to propose changes. These changes amount to a call to war on real estate cheats. As a result, the IRS is now going to require substantial additional accounting records for all real estate investors.
Special Tax Bulletin – 2010 Tax Relief Act
2010-12: A Tax Odyssey
The year has ended with a bang! Congress and the White House have acted at the Eleventh Hour. Tax uncertainty has gone away for two years. Taxes will remain the same, with some extra benefits.
The presidential signing--of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010--an $858 billion package of renewed tax cuts, unemployment benefits and fixes to the uncertainty surrounding the estate tax and AMT. Economists expect the bill to raise U.S. economic growth by one percentage point in 2011, perhaps definitively avoiding a double-dip recession. But the bill will also raise America's $14 trillion government debt.
