Excellence Tax Services

Ordinary Income v. Capital Gains on Selling Foreclosed Property

WENDELL V. AND SHARON T. GARRISON v. COMMISSIONER U.S. TAX COURT December 1, 2010   Facts: Wendell Garrison, in the years under question, 1998 to 2000, was a Mortgage Broker making about $40,000 a year from his mortgage business. Also during this time period he and his wife bought and sold foreclosed properties, flipping them as quickly as possible, holding them for a period averaging about four months. The Garrisons reported the income from the properties as capital gains rath... READ MORE Posted February 01, 2011 at 04:40 PM

Charitable Contribution for Donating House to Fire Department

ROLFS v. COMMISSIONER 135 T.C. No. 24 November 4, 2010   Issue: Whether taxpayer can take a deduction for donating his house to the local Volunteer Fire Department which burned it down in a training session.    Facts: The Rolfs paid $600,000 for a house and 3 acres of lakefront property in the Village of Chenequa, Wisconsin. The Rolfs decided that they wanted to demolish the 1900-era structure and build a new house on the site. An acquaintance told them that they had a similar ... READ MORE Posted February 01, 2011 at 04:38 PM

IRS Failed to Find Taxpayer’s New Address in Innocent Spouse Case

TERRELL v. COMMISSIONERU.S. COURT OF APPEALS, 5TH CIRCUIT Docket No. 09-60822   Issue: Whether the taxpayer had filed an innocent spouse relief determination request in a timely manner when the IRS received returned undelivered Notices from the US Post Office. This case is an appeal of a Tax Court Decision in which the Tax court sided with the IRS.   Facts: In September 2006 Pamela R. Terrell, a resident of Texas, received a notice of deficiency of over $660,000 in unpaid taxes... READ MORE Posted February 01, 2011 at 04:37 PM