At least it’s a higher-class crime this time: rapper Beanie Sigel got a two-year sentence for skipping out on over $700,000 in fefderal income taxes. Mr Sigel has an idea of what the next two years might be like, having done time in 2004-2005 on weapons and drug charges. TaxGrrrl has the scoop.
I think he at least has a hobby loss problem. Kay Bell: Is Batman cheating on his taxes?
What’s the lesson? If you’re one of the unfortunate souls still trying to unload a spec home you built pre-2008 and you’re angling to take an ordinary loss, you need to know the factors, and behave accordingly. Run it like a business, keeping books and records. Try like hell to sell the property through advertising, hiring unrelated brokers, etc… And for god’s sake, don’t admit you were “just trying to get rid of it.”
Taxing the Rich, and Missing the Point (Christopher Bergin):
The President’s proposal to temporarily extend the tax cuts for the middle class may have been smart election politics; I don’t know. What I do know is that it would help perpetuate a tax system – for which the Republicans share equal blame – that is unfair and unsustainable. Now, how does that protect any of us in the middle class in the long run? Like a lot of other things in our tax code now, it’s a ruse.
Smoke-filled rooms? What Does Poker and Revenue Neutral Tax Legislation Have in Common? (Brian Strahle)
Daniel Shaviro: What’s so special about “small business”?:
“Small business” sounds good rhetorically, whether you are trying to put a misleading face on support for the top 0.1%, like the Republicans, or simply trying for a more generally faux-populist tone, like the Democrats. Tax breaks for “big business” certainly don’t sound as wholesome. But there is no particular reason to favor one part of the business sector over another, or to give businesses a tax incentive to stay small
Or to clobber one over the other, either.
And tax increases, too: Essential reading: Obama, Democrats put tax cuts at center of 2012 agenda, and more (Tax Break)
Howard Gleckman: Taxes Don’t Always Drive the Economy–Sometimes the Economy Drives Taxes (TaxVox)
I get a very kind mention from Peter Reilly today:
The Blogger With Whom I Feel Most Sympatico
Joe Kristan is a CPA with Roth and Company PC in Des Moines, Iowa. Joe describes the Robert Flach version of tax season as a two month death march. He actually has the temerity to criticize the Pro, before whom, I stand in awe and wonder. In his Tax Update, he will often pick up the same cases that I do. He has taken to having many of his posts be Tax Roundups, which reflect a pretty good sampling of other tax blogs.
Totally unrelated to taxes, but well worth looking at is another blog of Joe’s that is inactive, presumably due to lack of further material. It is called 42-72817. The number is the serial number of a B-24 that was shot down in 1944. The top turret gunner, who survived the crash, was Joe’s father.
Peter is a prolific and perceptive tax blogger, one of the best of a group of new tax bloggers who have emerged in the past year or so. It’s the sudden abundance of excellent material from Peter and others that is behind these Tax Roundups; there’s so much good stuff out there now that I should link to, and this format helps me do that.