Posts Tagged: taxes

Catch 22: Money from Legalized Marijuana

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Video Updates.

Banks, including state-chartered ones, are reluctant to provide traditional services to legal marijuana businesses in Washington state and Colorado. Since the marijuana businesses are conducted almost entirely in cash, it is exceedingly difficult for these shop owners to open and maintain bank accounts, and ultimately accept credit cards. Questions: 1. Why won’t the banks open… Read more »

Not a good argument

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In a ruling on December 23, 2013, the U.S. Tax Court denied a Florida MBA student, with little work experience the claim for deduction of his tuition costs as a business expense. Questions: 1. What was the concentration (major area of study) of the student’s MBA degree? 2. What was the amount of the bill… Read more »

Tax breaks disappearing in 2014

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting, Managerial Accounting.

Unless Congress extends the tax deductions that are set to expire at the end of 2013, credits and deductions benefiting everyone from teachers and students to homeowners are scheduled to expire. Questions: 1. Which of these eight deductions will affect you personally? 2. Which of these eight deductions will affect your parents and other family… Read more »

Double-Dipping Pain

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Uncategorized.

Many homeowners are being taken to court by their lenders long after their houses were taken in foreclosure. How? Lenders are filing new motions in old foreclosure lawsuits and hiring debt collectors to pursue leftover debt, plus court fees, attorneys’ fees and tens of thousands in interest that had been accruing for years. Questions: 1…. Read more »

The Saga of Derek Jeter and Taxes

Posted by & filed under Accounting Principles, All Articles, Auditing, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Video Updates.

When I saw that Derek Jeter was in the news this week for changing residences from New York to Florida to lower his taxes, it made me wonder about what ever happened to Christian Lopez. Christian, a 23-year-old cellphone salesman from Highland Mills, N.Y, was the fan that caught Derek Jeter’s 3,000th hit and returned… Read more »

The Disappearing Debt Suddenly Reappears!

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, Intermediate Accounting, Managerial Accounting.

Jackie Esposito, of Guilford, Conn., got a letter that said her debt with JPMorgan Chase was canceling the amount she owed on a home equity account. While most people would be excited to get such a letter, Ms. Esposito was not. That is because Ms. Esposito had the debt legally wiped out three years ago… Read more »

Private Equity Firms and A Tax Strategy Investigation

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, Intermediate Accounting.

Eric Schneiderman, the New York attorney general, is investigating abusive tax strategies at some of the nation’s largest private equity firms. As part of these efforts, last week, he subpoenaed documents from more than a dozen firms hoping to uncover conversion of certain management fees collected from their investors into fund investments, which are taxed… Read more »

Labor Department Violations

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, Managerial Accounting.

On Tuesday, the Labor Department announced that it had levied a $34,000 fine on C. J.’s Seafood for safety violations. This is the company that supplies crawfish to WalMart. In addition, the agency also ordered C. J.’s to pay $214,000 for wage and hour violations. Questions: 1. Where is the company based? 2. Specifically, how… Read more »

Tsunami of fraud

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Watch out Florida! Coming to a town near you! Identity theft has violent criminals trading guns for laptops. Ledgers are stolen for social security numbers in order to file phony tax returns. Most times, refunds are returned on convenient but hard-to-trace prepaid debit cards. In addition, postal workers have been harassed, robbed and, in one… Read more »

Salute to Tax Day

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting.

According to Adam Davidson (et. al), if economists ran the tax system, there would be virtually no exemptions or loopholes. But instead, he submits, businesses, rich people, Congressmen and attorneys spend a shockingly large amount of time lobbying for tax breaks or exploiting the loopholes that exist. The tax code in 1913 was 27 pages… Read more »