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#8
03-13-2005, 10:56 PM
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 Re: interest on inheritance tax deficiency David Woods, EA, ChFC, CLU wrote: - quote - > > > > > > > This year, I paid the state of delaware interest on unpaid
The citation you are looking for is not IRC 162, but in TR 1.163-9T. It's too> > > > > > > inheritance tax i owed on a investment property (vacation > > > > > > > home) that I inherited years ago. I sold the property this > > > > > > > year and the settlement attorney said this interest is an > > > > > > > "investment interest expense" and deductible. Is this true? > > > > > > No. And don't take tax advice from an attorney who doesn't > > > > > > practice in that area. > > > > > As an attorney I have to agree with you. I often hear of > > > > > attorneys giving the most horrid advice that relate to tax > > > > > matters when they have no legitimate reason for doing so. > > > > This guy does practice in the area, and is a tax attorney > > > > (Bar admission: U.S Tax Court). So I am really confused > > > > now. > > > The issue is quite simple. What is the interest related to? > > > Is it related to the acquisition of the property or to an > > > unpaid tax liability? Clearly the interest is on the tax > > > liability. Therefore it is not deductible. > > Maybe this is bogus but what about the logic that says part > > of the acquisition of the property was the payment of > > inheritance tax. A payment that had interest due. The > > interest was not a penalty, but interest on an unpaid debt. > Fine. Let me put it in simpler terms. You cannot deduct > the interest on ANY unpaid tax liability. For ANY reason. > See Sec. 162. It's against public policy. bad that the Tax Court didn't buy my argument in 2003 that this regulation (introduced December 1987) hasn't naturally expired [by 1998] ("temporary" does not mean "forever"). << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#7
03-08-2005, 09:56 AM
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| Re: interest on inheritance tax deficiency David Woods, EA, ChFC, CLU wrote: - quote - > Fine. Let me put it in simpler terms. You cannot deduct
Does that apply to an accrual basis corporate taxpayer who> the interest on ANY unpaid tax liability. For ANY reason. > See Sec. 162. It's against public policy. got "a little behind" on his trust fund taxes? ChEAr$, Harlan Lunsford, EA n LA Mon 7 mar 2005 << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#6
03-07-2005, 08:31 AM
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| Re: interest on inheritance tax deficiency - quote - > > > > > > This year, I paid the state of delaware interest on unpaid
Fine. Let me put it in simpler terms. You cannot deduct> > > > > > inheritance tax i owed on a investment property (vacation > > > > > > home) that I inherited years ago. I sold the property this > > > > > > year and the settlement attorney said this interest is an > > > > > > "investment interest expense" and deductible. Is this true? > > > > > No. And don't take tax advice from an attorney who doesn't > > > > > practice in that area. > > > > As an attorney I have to agree with you. I often hear of > > > > attorneys giving the most horrid advice that relate to tax > > > > matters when they have no legitimate reason for doing so. > > > This guy does practice in the area, and is a tax attorney > > > (Bar admission: U.S Tax Court). So I am really confused > > > now. > > The issue is quite simple. What is the interest related to? > > Is it related to the acquisition of the property or to an > > unpaid tax liability? Clearly the interest is on the tax > > liability. Therefore it is not deductible. > Maybe this is bogus but what about the logic that says part > of the acquisition of the property was the payment of > inheritance tax. A payment that had interest due. The > interest was not a penalty, but interest on an unpaid debt. the interest on ANY unpaid tax liability. For ANY reason. See Sec. 162. It's against public policy. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#5
03-03-2005, 07:09 AM
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| Re: interest on inheritance tax deficiency David Woods, EA, ChFC, CLU wrote: - quote - > "gpatterson53[at]hotmail.com" <gpatterson53[at]hotmail.com> wrote:
Maybe this is bogus but what about the logic that says part> > Stuart A. Bronstein wrote: > > > "David Woods, EA, ChFC, CLU" <dwoods[at]woods-financial.com> wrote: > > > > "gpatterson53[at]hotmail.com" <gpatterson53[at]hotmail.com> wrote: > > > > > This year, I paid the state of delaware interest on unpaid > > > > > inheritance tax i owed on a investment property (vacation > > > > > home) that I inherited years ago. I sold the property this > > > > > year and the settlement attorney said this interest is an > > > > > "investment interest expense" and deductible. Is this true? > > > > No. And don't take tax advice from an attorney who doesn't > > > > practice in that area. > > > As an attorney I have to agree with you. I often hear of > > > attorneys giving the most horrid advice that relate to tax > > > matters when they have no legitimate reason for doing so. > > This guy does practice in the area, and is a tax attorney > > (Bar admission: U.S Tax Court). So I am really confused > > now. > The issue is quite simple. What is the interest related to? > Is it related to the acquisition of the property or to an > unpaid tax liability? Clearly the interest is on the tax > liability. Therefore it is not deductible. of the acquisition of the property was the payment of inheritance tax. A payment that had interest due. The interest was not a penalty, but interest on an unpaid debt. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#4
03-03-2005, 05:14 AM
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| Re: interest on inheritance tax deficiency "gpatterson53[at]hotmail.com" <gpatterson53[at]hotmail.com> wrote: - quote - > Stuart A. Bronstein wrote:
Ask him if he has actually spent time to research the issue.> > "David Woods, EA, ChFC, CLU" <dwoods[at]woods-financial.com> wrote: > > > No. And don't take tax advice from an attorney who doesn't > > > practice in that area. > > As an attorney I have to agree with you. I often hear of > > attorneys giving the most horrid advice that relate to tax > > matters when they have no legitimate reason for doing so. > This guy does practice in the area, and is a tax attorney > (Bar admission: U.S Tax Court). So I am really confused > now. If he hasn't, talk to your tax preparer first, and perhaps have the two of them talk. By the way, my off-the-top-of-the-head reaction is that I would agree with the attorney on the point. But I haven't researched the issue, so my opinion is worth every penny you paid. Stu << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#3
02-28-2005, 06:38 PM
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| Re: interest on inheritance tax deficiency "gpatterson53[at]hotmail.com" <gpatterson53[at]hotmail.com> wrote: - quote - > Stuart A. Bronstein wrote:
The issue is quite simple. What is the interest related to?> > "David Woods, EA, ChFC, CLU" <dwoods[at]woods-financial.com> wrote: > > > "gpatterson53[at]hotmail.com" <gpatterson53[at]hotmail.com> wrote: > > > > This year, I paid the state of delaware interest on unpaid > > > > inheritance tax i owed on a investment property (vacation > > > > home) that I inherited years ago. I sold the property this > > > > year and the settlement attorney said this interest is an > > > > "investment interest expense" and deductible. Is this true? > > > No. And don't take tax advice from an attorney who doesn't > > > practice in that area. > > As an attorney I have to agree with you. I often hear of > > attorneys giving the most horrid advice that relate to tax > > matters when they have no legitimate reason for doing so. > This guy does practice in the area, and is a tax attorney > (Bar admission: U.S Tax Court). So I am really confused > now. Is it related to the acquisition of the property or to an unpaid tax liability? Clearly the interest is on the tax liability. Therefore it is not deductible. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
02-27-2005, 01:53 PM
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| Re: interest on inheritance tax deficiency Stuart A. Bronstein wrote: - quote - > "David Woods, EA, ChFC, CLU" <dwoods[at]woods-financial.com> wrote:
This guy does practice in the area, and is a tax attorney> > "gpatterson53[at]hotmail.com" <gpatterson53[at]hotmail.com> wrote: > > > This year, I paid the state of delaware interest on unpaid > > > inheritance tax i owed on a investment property (vacation > > > home) that I inherited years ago. I sold the property this > > > year and the settlement attorney said this interest is an > > > "investment interest expense" and deductable. Is this true? > > No. And don't take tax advice from an attorney who doesn't > > practice in that area. > As an attorney I have to agree with you. I often hear of > attorneys giving the most horrid advice that relate to tax > matters when they have no legitimate reason for doing so. (Bar admission: U.S Tax Court). So I am really confused now. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
02-25-2005, 01:29 AM
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| Re: interest on inheritance tax deficiency "David Woods, EA, ChFC, CLU" <dwoods[at]woods-financial.com> wrote: - quote - > "gpatterson53[at]hotmail.com" <gpatterson53[at]hotmail.com> wrote:
As an attorney I have to agree with you. I often hear of> > This year, I paid the state of delaware interest on unpaid > > inheritance tax i owed on a investment property (vacation > > home) that I inherited years ago. I sold the property this > > year and the settlement attorney said this interest is an > > "investment interest expense" and deductable. Is this true? > No. And don't take tax advice from an attorney who doesn't > practice in that area. attorneys giving the most horrid advice that relate to tax matters when they have no legitimate reason for doing so. Stu << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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02-24-2005, 09:12 AM
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| Re: interest on inheritance tax deficiency "gpatterson53[at]hotmail.com" <gpatterson53[at]hotmail.com> wrote: - quote - > This year, I paid the state of delaware interest on unpaid
No. And don't take tax advice from an attorney who doesn't> inheritance tax i owed on a investment property (vacation > home) that I inherited years ago. I sold the property this > year and the settlement attorney said this interest is an > "investment interest expense" and deductable. Is this true? practice in that area. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
02-23-2005, 05:12 AM
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| interest on inheritance tax deficiency This year, I paid the state of delaware interest on unpaid inheritance tax i owed on a investment property (vacation home) that I inherited years ago. I sold the property this year and the settlement attorney said this interest is an "investment interest expense" and deductable. Is this true? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| deficiency, inheritance, interest, tax |
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