The Tax Exchange - June 2016
A recent court case emphasizes that the burden of proof is on the taxpayer when it comes to claiming deductions. On May 17, 2016, the Texas Comptroller of Public Accounts released a decision denying the costs of goods sold (COGS) deduction for costs incurred by a taxpayer in the business of information technology consulting services because the taxpayer did not demonstrate it was entitled to the deduction.
On May 11, 2016, the Tennessee Court of Appeals issued a decision holding that a retailer could not receive bad debt deductions for a third-party credit card provider’s bad debt write-offs.
Pension max is often offered to individuals as a way for couples to more affordably manage life insurance expense. But as with many financial “savings” strategies, there is significant risk involved. Risk that your life insurance agent may not be aware of or fully disclose.