Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

You can’t sue Big Brother

Posted by taxguru on November 19, 2015

More and more each day, all aspects of our lives are controlled by unelected bureaucrats who are never held accountable for their actions or the dire consequences that result. 

This is just one small example.

IRS: You Can’t Sue Us Unless We Say You Can

Posted in Crooks, IRS | Comments Off on You can’t sue Big Brother

Stay away from MyRA plans

Posted by taxguru on November 7, 2015

Excellent article from IPI explaining how ridiculous the new bHo sponsored retirement plan for some workers is.

Don’t Bother with myRA

Posted in Retire | Comments Off on Stay away from MyRA plans

Doing the job DOJ refuses to do…

Posted by taxguru on October 27, 2015

Who knows how far this will get; but it just feels good to see someone trying to punish IRS execs for their crimes.

Yes, the IRS chief has earned impeachment

Articles of Impeachment Issued Against IRS Commissioner

Impeachment drags IRS scandal into the spotlight

Lois Lerner and the IRS: Why we need a special counsel now more than ever

House Republicans introduce measure to impeach IRS Commissioner Koskinen

Lawmakers grill Koskinen over IRS targeting scandal, after DOJ ends probe

Posted in Crooks, IRS | Comments Off on Doing the job DOJ refuses to do…

IRS Attacks on Conservatives Approved by DOJ

Posted by taxguru on October 23, 2015

It comes as no surprise that the corrupt bHo Regime Department of Justice would support the IRS attacks on opponents of Our Supreme Imperial Ruler. 

Justice Department Declares Lois Lerner Innocent in IRS Targeting Scandal (The New American)

IRS’ Lois Lerner Skates; An Ugly Precedent Is Set (IBD)

Justice Department: No criminal charges for Lerner, others in IRS scandal  (FoxNews)

DOJ closes IRS investigation with no charges (CNN)

More IRS attacks on bHo critics are now guaranteed to happen with more frequency.

Posted in Crooks, IRS | Comments Off on IRS Attacks on Conservatives Approved by DOJ

2016 Federal Tax Inflation Adjustments

Posted by taxguru on October 15, 2015

Every year around this time, different tax scholars apply the past year’s annual inflation rate to those parts of the IRC that require annual adjustments. 

The first such announcement that I have learned about for 2016 is from The Tax Foundation. Here is the summary of their calculations:

Web – HTML

PDF (4 pages)

Update: IRS Has released its own calculations of the inflation adjustments for 2016:

In 2016, Some Tax Benefits Increase Slightly Due to Inflation Adjustments, Others Are Unchanged

Revenue Procedure 2015-53 with more details (27 page PDF)

IRS Announces 2016 Pension Plan Limitations; 401(k) Contribution Limit Remains Unchanged at $18,000 for 2016

Posted in inflation, IRS | Comments Off on 2016 Federal Tax Inflation Adjustments

Impeaching the IRS Commish?

Posted by taxguru on October 7, 2015

This would definitely be a very significant first and a good warning to others in the IRS. 

Rep. Jim Jordan Says House Will Impeach Head of IRS

Unfortunately, the IRS criminals are really just pawns for the masterminds of the plots to use government power, bHo and his number one partner in crime, Valerie Jarrett, who have already been given immunity from impeachment by our gutless GOP rulers.  

Who knows if impeaching Koskinen for his very obvious and blatant acts of perjury and obstruction of justice will make any real difference in the big scheme of things.  If he is actually convicted for his crimes, it’s safe to say that he will receive a pardon from the White House.

Posted in Crooks, IRS | Comments Off on Impeaching the IRS Commish?

Trump Flunks Basic Taxation Knowledge

Posted by taxguru on September 17, 2015

As I have pointed out for decades, the progressive tax rate structure that punishes (and thus discourages)success in this country has always been a plank in Karl Marx’s Communist Manifesto

Plank 2. A heavy progressive or graduated income tax.

For Donald Trump to not know that fact and in fact, defend this punitive tax rate structure, is unconscionable for someone who claims to be the country’s most powerful and knowledgeable capitalist.

Trump explains to GOP rivals that taxing rich is not socialism

Trump’s claim that because we have had graduated tax rates in this country for a long time automatically means that it isn’t socialistic is ridiculous.  Ben Carson most definitely wins this portion of the debate by calling out the socialist nature of graduated (aka progressive) tax rates. 

Posted in Commies, TaxRates, Trump | Comments Off on Trump Flunks Basic Taxation Knowledge

Tax Refugees

Posted by taxguru on September 13, 2015

While I have dealt with several clients over the past 40 years who have relocated between States in order to reduce their tax burdens, a growing strategy is with those who are actually choosing to leave the USA entirely, as described in this article.

Expatriates choosing to leave the U.S. rather than pay taxes

Depending on the results of the 2016 elections, we could easily see an even larger increase in the number of people taking this step rather than continue to be fiscally raped by short-sighted Rulers who see no problem in squeezing their Golden Geese until they can no longer exist.  Atlas Shrugs.

Posted in Uncategorized | Comments Off on Tax Refugees

Fighting Back Against New Taxes

Posted by taxguru on September 11, 2015

With the dumbing down of our nation’s kids and almost non-existent teaching of American history in public schools, I doubt that very many people recall learning about the infamous 1773 Boston Tea Party, where the colonists protested new taxes on tea

It’s all too rare nowadays when citizens of this country actually take a stand and don’t just bend over and let their supposed Rulers stick another new tax up their rear ends.

I hope the action taken by this group in Chicago are followed all over the nation to at least slow down the growth of Big Brother taxes. 

Chicago sued over ‘amusement tax’ on streaming services Netflix, Spotify

Posted in Uncategorized | Comments Off on Fighting Back Against New Taxes

Gifting via Debt Forgiveness

Posted by taxguru on September 2, 2015

From a Client:

Subject:  Accounting for Girls’ Inheritance "Forward"


Our plan is to loan our daughter and her husband $140,000. Annual payments will be their annual "gifts".  Their loan will be secured by a mortgage on their land and secured by a note @ zero interest. Their closing is soon.

Problem? Or problems?


My Reply:

You are on the right track here.  I’m assuming you are trying to work with the annual tax free gifting exclusion, which is currently $14,000 per donor (giver) per donee (recipient).

You just need to be sure to call the $140,000 a loan in your books and on your kids’.

Each calendar year, you can forgive $56,000 of principal as gifts from you and your wife to your daughter and to her husband.  A letter explaining this each year would be perfect documentation, as would recording it as such in your personal books.  This assumes there haven’t already been other large gifts that would count towards the $14,000 annual limit.  If so, you can just reduce the debt forgiveness by enough to keep the year’s total at no more than $14,000.

Some other relevant trivia:
The gifting limits are done on a calendar year basis.

You don’t need to wait a full year from the date of the loan to make the first debt forgiveness gift. It just needs to be before midnight on December 31, 2015.  Technically, you can give the second one on January 1, 2016.  However, if you do that, you won’t be able to give any more large gifts for the rest of 2016 and stay under the annual limit.

Every few years, the annual limit is bumped up by $1,000 when the cost of living warrants it.  It was last raised to $14,000 as of 2013.  When it is increased to $15,000 in the next year or two, you can increase your annual gifts accordingly.

I hope this info isn’t too confusing and is useful for your gifting plans.  Let me know if you have any questions.



Thanks. Perfect advice.

TaxCoach Software: Are you giving your clients what they really want?

Posted in Gifting | Comments Off on Gifting via Debt Forgiveness


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