Joint property can't be sold for husband's taxes
Article Abstract:
The court deemed in the 'Marshall v. Marshall' case that the IRS' sale of a husband's interest in a commonly owned residence it levied on was invalid because the husband could not have put it out for sale without the approval of his wife and the IRS stood in his shoes. The case involved a taxpayer and her estranged husband who jointly owned a residence with right of survivorship. The IRS made a lien on the residence to collect taxes not yet paid by the husband, consequently levying on and selling his interest at a public auction, with neither husband nor wife redeeming the property within 180 days of the sale through repayment of the purchase price plus 20%-per-year interest. The taxpayer argued that the sale of the residence was void because it was homestead property and the Minnesota law does not allow the husband to convey his interest without the consent of the wife. The district court agreed with the taxpayer.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1996
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Law practice not a hobby
Article Abstract:
The Tax Court concluded in 'Westphal, ' TCM 1994-537, that a self-employed woman attorney can deduct the losses she incurred in her practice from her tax report. The case was brought up by IRS when it decided that her losses should be disallowed because the lawyer did not claim any deductible items as business losses on Schedule C. The Tax Court looked at four factors in determining the case: the manner with which the business is carried out, the expertise of the taxpayer in the activity, the time and effort spent by the lawyer in the activity, and the history of the losses of the taxpayer. The taxpayer was able to meet the standards set for the variables, except in the history of losses. Nevertheless, the court stated that the history of losses is not reflective of any absence of a profit motive.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1995
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