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Free Legal Advice

How Is a Realisation of Real Property Taxed?

The proceeds from the mere realisation of the capital assets or from the change of investment not give rise to income according to ordinary concepts or talk profit arising from a profit-making undertaking or plan within the meaning of the legislation, even if the realisation that changes carried out in the most advantageous manner. Of course, the capital gains tax provisions may apply in relation to property acquired on or after the 1985.
In the Scottish Australian mining case, a coal mining company exhausted the main coal seam on land that it owned. It then subdivided the land, constructive roads and railway station, granted land to public institutions and then sold the subdivided parcels for profit. It was held that the taxpayer was merely realising capital asset to its best advantage. In the NF Williams case, the High Court commented that an owner of land who holds it until the price of land has risen and then subdivides and sells it is not exchanging in an adventure in the nature of trade or carrying out a profit-making scheme, even if a landowner seeks the advice of experts as to the best method of subdivision and sale or carries out work such as grating, levelling, roadbuilding in the provision of water and power.
More recent examples of the principle that the proceeds from the mere realisation of the S of the assessable as ordinary income are where the profits realised on the sale of subdivided farming land all receipts under agreements for the sale of timber growing on the taxpayers land or the progressive sale of farming property or the profits from the sale of the subdivided orchard are all the exempt from the calculation as assessable income. This reason, the realisation of real property is often not considered an element of assessable income.…

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Law Firm

You Can Work Well With an Unreasonable Boss – But Here’s the Trick

Actually, tricks would be more accurate for a boss that is that unreasonable. Following are some tips that will be very helpful to you in your daily communications with that unreasonable boss.
Most of us have had to deal with a problematic boss at one time or another in our work life. It can be tremendously annoying, and frustrating, for any employee who is just trying to do their job properly to have to deal with such a superior at work. Such a person can make work virtually unbearable.
The daily tipping point is usually when the employee has to personally interact with that overbearing and unreasonable boss. And it is especially worse, when the discussion involves a sensitive subject.
There are some tips, or tricks, that will probably work if you act accordingly:
1) Whatever you do, do not get cocky. This could be difficult, but very important not to do. Do not let your confidence, which is basically a good thing, overflow into a cocky attitude. That could just ignite an outburst from him or her.
2) Conversely, if you appear to be easily submissive or meek, you’re setting yourself up to be bullied. Concerning this, and #1 above, act confident and competent just enough. That should do it.
3) Be polite. That goes without saying, regardless of your voice and personality. Just be polite, show respect, but without much more. The last thing you want to give that unreasonable boss of yours is ammunition to use against you.
4) This is very important to remember when in a conversation with a particularly difficult boss. That is, the way that you raise your statements, the points that you raise. If you are discussing a particularly sensitive subject, such as relations between management and employees, try best to get your thoughts across without politicizing the subject or making a snide remarks. Again, you would be asking for trouble.
Bluntness would probably not be appreciated. That could be a problem with close friends even; with that unreasonable boss, that is obviously just another way to unintentionally set him off. You must be very patient, as unreasonable as that is to you. Remember, you’re not dealing with a reasonable human being; and, unfortunately, they are your boss.
5) there are limits, even when dealing with a very unreasonable boss concerning your self respect. He or she is not the boss of your entire life; hopefully for no more than eight hours a day, five days a week. By showing you have a strong backbone, without getting in their face, but rather remaining so-called calm, cool, and collected, you probably do just fine, and leave that day in a relatively good state of mind.
If you are having problems with a bullying boss at work, the Undercover Lawyer can help! Check him out here.…

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General Article

Tips For Contacting the IRS For Tax Help – What You Don’t Know Might Hurt You

Tips For Contacting the IRS For Tax Help – What You Don’t Know Might Hurt You

IRS Commissioner Douglas Shulman has pledged that IRS agents will have more flexibility to reach tax settlements with taxpayers who have fallen on hard times and owe back taxes, but it is important to remember that “Revenue ” is the IRS’s middle name.

With the IRS, making things “easy” means separating taxpayers from their money with as little friction as possible. What is good for the IRS generally is not’t good for you. Additionally, while you may owe some back taxes, your tax liability may not be as much as the IRS believes.

It is important to consult with a tax attorney or Certified Tax Resolution Specialist to go over your case before you contact the IRS because everything you say to that friendly government agent “can and will be used against you.” Confiding your tax woes to the IRS is not a good idea – it would be like confessing your sins to a prosecutor without your defense attorney present.

But if you are determined to contact the IRS for tax help, you need to be smart unless you want increase your audit risk and/or tax liability. It isn’t just “what you don’t know can hurt you,” it is what the IRS agents themselves don’t know that can really hurt you.

The IRS Will Give You Bad Tax Advice 43% Of The Time

If you have collection-related matters, bank levies, tax liens, your wages are being garnished or you’re being audited, instead of calling a tax attorney or Certified Tax Resolution Specialist, your first impulse might be to call the IRS itself to seek clarification on your back tax issue. Unfortunately, while the IRS might tell you why they are going after you, they have a horrible track record for giving out tax relief advice on how to resolve back taxes and IRS problems.

The IRS offers 10 reasons you should visit its Taxpayer’s Assistance Centers “for good old-fashioned face-to-face assistance from the Internal Revenue Service. No recorded menus. No hold music.” Sounds great! But there’s one big reason not to. Without a tax attorney or Certified Tax Resolution Specialist on your side, you have an even greater chance of making your back taxes situation worse.

It’s important to keep in mind that when you work with the IRS, their agents, unlike tax attorneys or Certified Tax Resolution Specialists, often don’t have the proper training to provide you with the tax help that you need. When you make that call to the IRS 1-800 help line number, you’re essentially putting your financial fate in the hands of someone that doesn’t have the knowledge or experience to deal with your tax situation. It is the job of a tax attorney or a Certified Tax Resolution Specialist to make sure that IRS representatives adhere to their own rules.

My best advice, if you do end up on the phone with the IRS, is to take down the rep’s name and their extension number so you have a record of who you’re talking to. A lot of them don’t give you their name, and they don’t want to give you their badge number. Those are the people you’ll really have to watch out for.

How to Ensure You Don’t Pay A Penny More to the IRS Than What You Owe

Fortunately, there is a way to greatly increase your odds of a favorable resolution. Tax attorneys or Certified Tax Resolution Specialists are dedicated to fighting for you when they go to battle with the IRS. And the money you spend on tax attorney or Certified Tax Resolution Specialist fees will be saved many times over in the taxes and penalties that you do not have to pay.

So if you get that scary letter from the IRS, you don’t have to feel alone because a tax attorney or Certified Tax Resolution Specialist can help you and go to bat with the IRS on your behalf! Know that if you try to represent yourself before the IRS, you will end up in a losing battle. Plus expert tax help from a tax attorney or Certified Tax Resolution Specialist can help you ensure you don’t pay a penny more to the IRS than what you owe.

For any back taxes under $10,000, you can pick up the phone and give the IRS a quick call and they’ll set you up on a small monthly payment plan for $100-$115/month. You will not have to fully disclose your financial information (where you work, how much is in your .) to be able to be set up with a reasonable payment plan unless you owe more than $10,000.

Negotiating Your Back Taxes and IRS Debt

Most tax attorneys and Certified Tax …

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General Article

The Top 2 Commandments To Handling Any IRS Tax Controversy

The Top 2 Commandments To Handling Any IRS Tax Controversy

Yes, I realize there are already thousands of articles published on handling IRS controversies relating to a whole host of matters. Most focus on particular tax topics, such as how to handle an audit or representing oneself pro se in the U.S. Tax Court. So long as the information is accurate, then great, I hope you, the taxpayer, find whatever you are looking for.

One problem that I see, however, is that very few articles focus on the absolute fundamentals of dealing with any IRS controversy. And when I say “tax controversy,” let me just clarify by saying that for me the term “tax controversy” entails many things, but for purposes of this article, a “tax controversy” is when the IRS takes issue with one of your previously submitted tax returns or failure to file a tax return.

When dealing with the IRS, it is essential that you understand some very fundamental things. So essential, in fact, I refer to them as the 5 Commandments.

Commandment I: Do Not Ignore the IRS!

Seems simple enough, but even cynics would be surprised at the number of people who simply ignore the IRS in the hopes they will just lose interest and go away. Unfortunately, the IRS does not go away. As a matter of fact, it is quite the opposite. Failure to respond to IRS inquiries will eventually give the IRS the right to impose its will on you. That amount in controversy is no longer in controversy – it is now assessed and owed. Let me provide an example.

Example 1 – Taxpayer John purchased his first set of stock in the beginning of 2008. The total amount purchased was $10,000. John quickly realizes 2008 is a terrible year to start buying stocks so manages to sell all his stock by the end of 2008 for $8,000. As you can see, John lost $2,000 in this process. Now, let us say the IRS sends taxpayer John a letter stating that it disagrees with how John treated his capital gains with respect to the stocks bought and sold in 2008 and would like him to submit additional paperwork in order to substantiate his claims of the stock’s basis. Instead of responding, however, John ignores the letter from the IRS. In fact, John ignores all subsequent letters as well. As a result, the IRS disallows the $2,000 loss and instead assesses an $8,000 gain.

As you can see, this $10,000 swing will greatly affect his tax liability, and thus the amount he will owe to the IRS. But wait! What about John’s basis? Shouldn’t the IRS know John had to have some basis in the stock?

Yes, the IRS does know John has some basis in the stock, but the point to remember here is that the IRS is not responsible for determining the stock’s basis, John is responsible. When John does not respond to the IRS letters, the IRS is left with no choice but to treat the stock as if it had a basis of zero.

Trust me when I say this – if you try to work pro-actively with the IRS, you will be treated fairly. If you decide to ignore the IRS, they simply cannot give you the benefit of the doubt.

Commandment II: Do Not Panic

People make irrational decisions when panicked. My advice – remain calm. Personally, the IRS reminds me of a turtle. A turtle is smart, but slow. Garnishing wages and levying on property are actions of last resort and take a long time to come about. The IRS simply does not want to have to take your case that far. Also, the IRS rarely hands cases over to the Department of Justice in order to bring criminal charges against you. Honestly, the IRS does not think you are worth it, so do not give them a reason to make it worth their time. Remain calm and you will make good decisions.…

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General Article

How FHA Loans Help You Buy A House

How FHA Loans Help You Buy A House

Federal Housing Administration (FHA) has been a homebuyer’s favorite since it was created by the Department of Housing and Urban Development. It was started with the purpose of helping first time buyers. FHA does not provide loans; it insures loans given by any private lenders. It helps the buyers, especially low income buyers, in buying affordable houses.

Contrary to the conventional mortgage companies which often ask for 20% of the purchase price as down payment, FHA requires only 3.5% as down payment, which includes the processing fee of the loan. If you wish to know the amount of mortgage credit you are eligible for, go through the HUD website and check your credit limit. If the price of the house that you are planning to buy is within this limit, FHA can insure the loan.

Additionally, lending institutions generally will not give you a loan for repairing the house that you are buying. Under FHA rules, repairing and restructuring of the house may also be financed. Amounts provided for repair is put in escrow account so that it can be used as per the requirement.

Another popular benefit of FHA is the reverse mortgage. A citizen above 62 years of age without any major source of income other than social security can do a reverse mortgage his house through the FHA if he has clear title. The citizen can stay in the house and get money during his lifetime to pay his medical bills etc. He would not be required to repay the loan as long as he stays there.

It is wise to make house energy efficient. FHA helps home owners in adding energy efficient features to the house. In this case too, a borrower needs a 3.5% down payment upfront and gets the rest 96.5% financed by a mortgage company.

Mobile or manufactured homes are increasingly popular. In a state like Florida, one third of the houses are mobile homes as the cost of living has made it more desirable. FHA loans are available to people who own the land to place their mobile homes on, or those who will place their mobile homes in mobile home parks.

A person may be eligible for an FHA insured loan even if he has a bad credit history or is in financial problems. It can also help an individual in buying a house after a discharge from bankruptcy. The FHA rates are most competitive and the mortgage terms are usually as straightforward as any basic mortgage, although there is always extra paperwork which must be signed at closing.

FHA insured loans are available to everyone, however, they are primarily used by the first time house buyers, buyers in lower and middle income groups and the buyers with poor credit ratings. The only drawback is the extensive paperwork that you have to do. For that, you might need to consult a real estate attorney to understand the terms and conditions properly before you buy the desired house.

* This article does not constitute legal advice and does not establish an attorney-client relationship.…

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Statutory

Bankruptcy and Your Marriage

You might read the title of this article and shudder. After all, bankruptcy can’t be a good thing for a marriage, can it? If you’re like many people, you may be under the impression that bankruptcy always means bad news. However, we’d have to tell you that you’re wrong. In fact, bankruptcy might be the best thing that ever happened to your marriage!
If you’re marriage is struggling, there’s a good chance that a lot of the difficulty is financially-related. Everyone knows that money issues are one of the biggest struggles that most couples go through. From money management and budgeting to strategies for approaching debt, even the closest couples sometimes disagree about money. Those disagreements become even more serious when dealing with the kind of debt that involves bankruptcy.
Seeing a Marriage Counselor
If your marriage is burdened by serious debt, many people are probably quick to recommend you see a marriage counselor. For many couples, marriage counseling can be a great way to address and resolve many of the relational issues they face. Many marriage counselors are more than qualified to help you work through some of the financial issues that strain your relationship.
However, not even the best marriage counseling can get rid of your debt. Solvency is hard to come by; and, it might take bankruptcy for you to get the solvency you so desperately need! While other debt solutions are available, the biggest problems need the most extreme solutions. More and more couples are finding bankruptcy to be a terrific “extreme” solution.
Seeing a Bankruptcy Lawyer
Here’s where the bankruptcy lawyer comes in. While your bankruptcy lawyer might not provide you with relationship advice, a good bankruptcy lawyer will help you attain solvency through the bankruptcy process.
When the heavy financial burden is lifted from your shoulders, you and your spouse will notice that your relationship becomes much easier. After bankruptcy, there’s no more fighting about how debt will be addressed; there are no more disagreements over what expenses have to be cut in order to pay a bill. Further, the bankruptcy process can be a mutual learning experience and teach both of you valuable skills for the future.
Bankruptcy might be the smartest money management tactic the two of you ever employee. If you’re curious to learn more about the bankruptcy process, and you’re serious about getting rid of debt and saving your relationship, contact a bankruptcy attorney. Why not you and your spouse? Don’t delay in getting your life back on track!…

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Common Law

A Divorce Lawyer Offers Advice on Prenuptial Agreements

With statistics showing that one in three marriages now end in divorce, the sad facts are that however true love may seem, it may not always last. While some may consider such a process unromantic, a pre-nuptial agreement can help assuage any concerns about potential ‘gold-diggers’ and help keep things less messy, should a marriage end in divorce. A Manchester divorce lawyer can help you draft a prenuptial agreement or offer expert legal advice on what to do with it, should you and your partner be considering divorce.
Woolley and co. Solicitors offer this definition of what a prenuptial agreement actually is, “A prenuptial agreement provides clarity for couples in respect of their finances and children in their relationship. The Courts are not obliged under UK law to keep to the agreement but unless there have been significant changes they are likely to regard the agreement as very persuasive.” It basically covers each partner for their assets, should the relationship end in divorce; a popular ‘prenup’ is that each partner takes away exactly what they brought to the marriage, which often protects the wealthier of the spouses.
The fact that UK Courts are not technically obliged to keep to the agreement shows that prenuptial agreements are not particularly popular in England, with America being a nation more known for its ‘prenups’. The Hollywood film ‘Intolerable Cruelty’ showed George Clooney and Catherine Zeta Jones battling over their various assets in glossy Technicolor; while this film obviously glamourised the process of prenuptial agreements, celebrities can often have fairly ridiculous clauses written into their prenups, including the number of times that the couple must have sex per week and a 100,000 dollar fine if the wife’s weight climbs above 120 pounds! (The guilty parties shall remain nameless…)
In our more normal, less crazy world, prenuptial agreements can still be taken out as an effective ‘damage control’ device, should the relationship sour. As the ‘Prenuptial Agreements’ website states, “The range of what can be in a prenuptial agreement is flexible and can accommodate most of the individual wants and desires that a marrying couple may have. On the other hand, there are some strict rules about what cannot be in a prenuptial agreement.” Such rules include clauses about the custody of children and infidelity, yet can also cover more subtle nuances about marital problems; it is well worth getting a divorce lawyer to go over the rules with you and discuss the best course of action for you to take.
A prenuptial agreement does not necessarily mean that you do not take your relationship as seriously as others, it may just be a sign that you are not naive about the truths and facts about marriages; it may just be worth researching, should you want a safety net below your marriage.…