A recent Tax Court case shows why old tax records can remain important decades after a transaction. When a carryforward is used, taxpayers may need to prove where it originated, how it was calculated, and what remains. Learn what records should be preserved for capital losses, AMT credits, NOLs, passive losses, and other tax carryforwards.

An S corporation can own rental real estate, but appreciating property can become expensive to remove. Learn how property distributions, leveraged contributions, LLC elections, liquidation, Section 1031 exchanges, self rental rules, estate planning, former C corporation status, and California taxes can affect the structure.

A 1031 exchange can defer gain from California real estate, but moving out of California does not necessarily eliminate California tax on that deferred gain. Learn how Form FTB 3840 works, how California tracks deferred gain through later exchanges, why California and federal basis can differ, and what proposed Regulation Section 17951-7 could change.

Moving out of California does not end California tax exposure on real estate you still own in the state. This guide explains California source gain, Form 593 withholding, former residences converted to rentals, installment sales, Section 1031 exchanges, and what nonresident sellers should review before escrow closes.

Nondeductible IRA contributions create tax basis that can remain important for decades. Learn how Form 8606 tracks that basis, how the pro rata rule affects Roth conversions and IRA distributions, and why keeping the right records can prevent previously taxed money from being taxed again.

IRS CP59, CP516, and CP518 notices mean the IRS believes a required federal tax return is missing. If the issue remains unresolved, the IRS can calculate tax from third party information. Multiple years, missing records, business income, and substitute returns often require a more detailed review.

A California FTB Notice of Proposed Assessment is not yet a final tax bill. Before the 60 day protest period expires, the proposed tax, penalties, federal adjustments, California differences, and supporting records should be reviewed to determine whether the assessment is correct.

IRS math error notices can result in immediate tax adjustments, but taxpayers generally have 60 days to request abatement. Learn what IRC Section 6213 provides and when the new Math and Taxpayer Help Act notice rules become effective.

California residency does not depend only on where you spend the most time. The nonprecedential Ajith decision illustrates how California evaluates domicile, temporary absences, physical presence, and continuing connections when determining whether a taxpayer remains a California resident.

The July 10, 2026 deadline identified for many potential Kwong refund claims has passed, but that does not mean every claim is closed. Learn how IRC Sections 6511, 6532, and 7508A affect current COVID 19 disaster refund claims and why the pending Federal Circuit appeal still matters.

IRS penalty relief changed in 2026 with the introduction of Automatic Exemption from Penalty. Learn how AEP, First Time Abatement, reasonable cause, account transcripts, and current eligibility rules affect IRS penalty notices.

A missed or underpaid June 15 payment no longer automatically eliminates the 2026 California PTE election. Learn how the 12.5% owner credit reduction is calculated, when the election may still produce federal tax savings, and how to prepare for the 2027 deadline.

The federal SALT deduction limit rises to $40,400 for 2026, but California taxpayers may lose part of the deduction when modified adjusted gross income exceeds $505,000. Learn how income tax, property tax, year end payments, and the PTE elective tax affect the deduction.

Certain IRS penalties require written supervisory approval under IRC Section 6751. Learn the current timing rules, which penalties are excluded, and how the final Treasury regulations affect penalties assessed after December 23, 2024.

A foreign owned U.S. LLC may need Form 5472 even when it owes no federal income tax. The answer depends on its tax classification, ownership, and transactions with related parties. Learn the rules and the cost of missed filings.

A tariff refund may be taxable income, a reduction of cost of goods sold, an inventory adjustment, or a basis adjustment. The answer depends on how the original tariff cost was reported.

Can an LLC member or partner receive a W-2? The answer depends on how the business is taxed. Learn when owners qualify as employees, how partnerships should report owner compensation, and what may need to be corrected when payroll was processed incorrectly.

A recent Tax Court case shows how the IRS may disallow business deductions when personal expenses, family costs, travel, meals, reimbursements, and shareholder advances are run through a company without proper records or a clear business purpose. For business owners, the lesson is direct: keep clean records, separate personal and business spending, and document why each expense belongs to the business.

The Tax Court denied more than $456,000 in horse business losses after finding that weak financial records, commingled funds, no credible profit plan, and eighteen years of losses outweighed the taxpayers’ expertise and substantial effort. Schumacher v. Commissioner shows what business owners must document to protect deductions under Section 183.

One missing sentence in a charity receipt can eliminate an otherwise valid tax deduction. Wells v. Commissioner shows why donors must obtain a timely acknowledgment that states whether the charity provided goods or services, and why Form 8283 is not enough.