I recently heard a former celebrity tax lawyer speak. And while much of his talk involved some pretty grim issues of tax fraud, he started his talk by discussing the practice of celebrity tax law.

One interesting question he presented was the issue of whether celebrities should be taxed on the many goodies they receive by virtue of their celebrity status. While many of these items seem gifts, on the surface, a true gift is really characterized by detachment and disinterest.

Can we really say that many of these items given to celebrities are ”gifts”?  Read more... (336 words, 1 image, estimated 1:21 mins reading time)

The fabulous and  ever-so-brilliant Kari is  granted a scholarship to attend a spectacular East Coast University.  The University offers to cover all her expenses, including her dorm, her tuition and her books for the first year. 

What does the IRS expect from her?

We could answer the question by using complicated tax concepts and fancy tax words. 

Or, we could simplify it.  Remember that the simple answer is not the most comprehensive answer, so you’re always best using this as a starting point and seeking competent tax counsel from your accountant or attorney.  Read more... (107 words, 3 images, estimated 26 secs reading time)

Sigh.  Aren’t gifts wonderful?  And with the Holiday season approaching, who isn’t excited about getting gifts.

But, as we already know, we must report our income.  And by that, the Internal Revenue Code says that we must report all income from whatever sources earned.

Nooo!  Not my gifts!

Relax.  There are certain items that are excluded from income.

Umm, translation please?  Read more... (440 words, 2 images, estimated 1:46 mins reading time)

Annie is a fabulous and savvy businesswoman.  She has a successful decorating business and is doing very well for herself. 

Celia owns her own hair studio. She decides to call Annie up one day to have her studio decorated.

Celia: ” Hi Annie, I am remodelling my hair studio and was wondering if I could hire you to decorate it.”

Annie:  “Sure.  You’re studio is small enough. I imagine that I could do your entire studio for $800.   Read more... (215 words, 1 image, estimated 52 secs reading time)

So, you had a fun and productive year. You either had a fabulous job or you started your own savvy business.  And you have the cash to show for it. 

And now, with April 15 around the corner, the mean-old IRS wants a bite of that cake. 

But  how much cake are they getting and how do you figure out how big a slice to give them?   Read more... (557 words, 4 images, estimated 2:14 mins reading time)