Contribution to Corporation, then Sale of the Corporation

Most income tax planning involves questions about income, deductions or credits, character, or timing, or some combination of these questions. When viewed from these categories, even simple transactions can present tax planning opportunities. The contribution of property to a corporation by its shareholder is an example. A contribution triggers taxable income to the shareholder. Our……

Charter Boat Expenses are Miscellaneous Itemized Deductions

We live in a complex society. Even common activities can be exceedingly complex. Take a charter boat operation, for example. One has to consider the various laws for registering the boat; laws that dictate where and when the boat can operate; the laws governing the crew and its activities; and financing and loan and insurance…Continue…

How Long Does Probate Take in Texas

Yahoo! Finance ran an article entitled “How Long Does Probate Take.” The article sets out several circumstances that can slow down the probate process. The article is not Texas-specific, so many of the circumstances do not really apply for probates in Texas or are more nuanced than mentioned in the article. The article provides an…Continue…

Pfizer: Vaccine Safe for Children

Parents of elementary school students in the Houston area felt welcome relief on Monday when Pfizer announced its vaccine is safe and effective for the 5- to 11-year-old age group. The findings represent a key step toward inoculating a younger population that so far is unprotected from the virus. Right now, only children 12 and…Continue…

Factors Showing Innocent Spouse Relief

The IRS has wide discretion in how it administers our tax laws. This discretion is power in its purest sense. This power can be wielded to destroy hard-won reputations, careers, and fortunes and it can even cost individuals their freedom. These powers can come from ambiguities in our laws. They can come from restrictions in…Continue…

Probate Claim vs. Probate Administration Expense

What does Texas law say about a creditor trying to collect a debt from someone who died? You may be surprised to learn that some debts can be erased as part of the probate process, somewhat like discharging debts in bankruptcy. The case of Ullrich v. Est. of Anderson, 740 S.W.2d 481 (Tex. App.‒Houston [1st…Continue…

Rental Tax Losses for Those With Irregular Hours

Tax cases are interesting in that they apply a fairly well-developed set of rules to varying fact patterns. These varying fact patterns can result in surprising, and often unintended, consequences. The more complex the tax law in question, the more likely it is that the outcome will be something other than what Congress may have…Continue…

Galveston County Reports its First COVID-Related Death in a Child

Kali Cook, a 4-year-old Galveston County girl, was running around her Bacliff home Monday, gleefully batting the fake red eyelashes her grandmother had given her for Labor Day. By 2 a.m., she had a fever. By morning she was gone. The 4-year old died of COVID-19 in her sleep Tuesday at 7 a.m., her mother…Continue…