Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

Another IRS security breach…

Posted by taxguru on May 26, 2015

Maintaining privacy and confidentiality is harder than ever to do, especially with so many people and companies demanding that we provide them with our SSNs.  It’s doubly worse when you are forced at the end of a gun to reveal all of your most personal and private information to a governmental agency that can’t control who has access to it.

IRS has just admitted to over 100,000 taxpayer accounts being illegally accessed by criminals.  How many were really hacked, nobody will ever know.  What we do know is that this kind of thing will just get much worse, since the same geniuses in charge of IRS cyber-security are responsible for the ever growing personal data associated with ObamaCare.  There will no longer be any such thing as private medical records.

104,000 taxpayers have personal info stolen from IRS website

IRS Statement on the “Get Transcript” Application – From IRS

IRS hit by cyberattack, thousands of taxpayers’ information stolen – Wash. Times



Posted in Crooks, IRS, privacy | Comments Off on Another IRS security breach…

So much for IRS confidentiality…

Posted by taxguru on May 24, 2015

I’m sure all fellow tax pros can attest to the fact that every day in this business brings up new items and situations.  With all of the recent problems IRS has been having with its credibility, here’s a new one I haven’t seen before.  An IRS Collections Agent accidentally broadcast a phone call with a taxpayer on the Howard Stern radio show.

Taxpayer’s Call To IRS Accidentally Broadcast On Howard Stern’s Radio Show – from Forbes

Howard Stern Airs Taxpayer Phone Call to IRS – from Accounting Today


The recording, with Howard Stern and Robin Quivers making fun of it.

I guess, with all of the recent news stories about government employees spending most of their time at work surfing porn sites, the fact that an IRS agent had time to call in to the Stern show from his workplace isn’t that shocking.

Posted in IRS, privacy | Comments Off on So much for IRS confidentiality…

Cap Gain Tax Rates Are Not Simple

Posted by taxguru on May 20, 2015

From a client in Texas:


We are considering marketing our Louisiana property this year. I was banking on just the 15% long-term cap gains tax, but my sister says Obama has done something that adds another 4% to it. Will you please confirm what the rate would be?



My reply:

I’m glad to see that you are researching this ahead of time because there is no quick and easy answer. As with most tax matters, there are actually different rates depending on the type of gain and the level of your other income.

I am attaching some explanatory brochures on this subject.

As you can see on the one called “Stocks, Bonds & Mutual Funds,” the Federal long term cap gain (LTCG) rate goes from zero percent to 20%, depending on your ordinary tax bracket.  If you are in the 15% Fed tax bracket, as you were in 2013 and 2012, the LTCG rate would be zero.

The extra 4% tax your sister referred to is actually a new 3.8% tax on net investment income that was part of the ObamaCare law. Capital gains are part of the net investment income.  However, as you can see on the brochure called “Other Individual Taxes,” this tax only kicks in when your adjusted gross income (AGI) is over $250,000

There are some additional factors that you may have overlooked here.

1.  If the property has been depreciated, the Federal rate on the recapture of that depreciation is 25%.  The best way to see how much recapture you will have is for the partnership’s tax preparer to run a proforma 2015 tax return with a guesstimated sale amount to see what the results will be for each partner.

2.  Being located in Louisiana, any gain from the sale of that property would be subject to that state’s income tax, which would be six percent (6%).  While you probably won’t be subject to the 3.8% net investment income tax, you will definitely be subject to the LA tax.

3.  If the expected taxes are high enough to motivate a 1031 like kind exchange, you need to set this in motion ahead of time.  There are some complications with 1031s that involve property owned by an LLC or partnership if not all of the owners are doing the same thing.

I hope this info is useful.  Let me know if you have any other questions.


Client Response:

Well, it hurts that the capital gain is subject to Louisiana to tax. Sure appreciate your feedback, as always. May have more questions.


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


Posted in CapGains | Comments Off on Cap Gain Tax Rates Are Not Simple

Per Mile Tax

Posted by taxguru on May 20, 2015

For several years now, various governmental entities have been threatening to start levying a per mile tax on vehicles because they aren’t satisfied with what they are already taking in at the fuel pumps and toll collectors.

It looks like,Oregon is going to start that process, which will most likely spread across the county. Of course, as is always the case, this will end being an additional tax and not just a replacement for an existing one.

Oregon to test pay-per-mile idea as replacement for gas tax

This issue reminds me of the following verse from George Harrison’s classic TaxMan song.

If you drive a car, I’ll tax the street
If you try to sit, I’ll tax your seat
If you get too cold I’ll tax the heat
If you take a walk, I’ll tax your feet


TaxCoach Software: Finally! Plain-English Tax Planning That Builds Your Business!


Posted in NewTaxLaws, TaxMan, Vehicles | Comments Off on Per Mile Tax

“You didn’t build that”

Posted by taxguru on May 20, 2015

A recurring DemonRat mantra is that anyone who has done well in what they call “life’s lottery” owes every bit of that success to the government.  Dims, as with their Marxist comrades, actually believe that Big Government is more important to every aspect of everyone’s existence than anything or anyone else, including God.

Ray Stevens just posted this great example of the hypocrisy of this DemonRat philosophy.

While this video doesn’t focus on it, I found it slightly ironic that one of the examples of success, Ted Turner, became a huge supporter of Marxism after he became wealthy.

Posted in Commies, Ray Stevens, video | Comments Off on “You didn’t build that”

Tax Clown

Posted by taxguru on May 12, 2015

One of the Top Ten New Fall Shows from last night’s David Letterman show.

Posted in humor | Comments Off on Tax Clown

Running out the clock…

Posted by taxguru on May 10, 2015

Stalling and refusing to cooperate with investigations is standard practice for the DemonRats.

Two years later, IRS probes drag on


GOP has waited two years for info on IRS correspondence with Dem senators

With the public’s short attention span for these kinds of scandals, as well as the GOP’s unwillingness to push back against any DemonRat criminal activities, the stonewalling strategy is bound to succeed once again.


Posted in Crooks, IRS | Comments Off on Running out the clock…

DemonRat Financial Hypocrisy

Posted by taxguru on April 29, 2015

Yesterday’s episode of NewsBusted had some good zingers on the Dims’ well deserved reputation for cheating on taxes and using corrupt means to raise campaign funds.




From Jimmy Fallon via NewsMax:

Hillary Clinton wrote an Op-Ed for a paper in Iowa about her plans to help the middle class. Middle-class Americans said, “Why didn’t you just say that in a speech?” and she said, “Because I charge $200,000 for a speech.”


There is a new reality show on CBS where a family must decide whether to keep $100,000 in a briefcase or give it away to another family. The show’s called, “We’ll Keep the Briefcase.” It’s the first 10-second-long show in history.


The NFL recently agreed to give up its tax-exempt status. It sounds like a big change, but on the bright side, the Philadelphia Eagles can still write off Tim Tebow’s salary as a charitable donation.


From Argus Hamilton:

Clinton Cash is a new book saying Hillary used her post as Secretary of State to greatly increase her family’s fortune via donations to the Clinton Foundation and high speaking fees for Bill. That’s not fair. She was only trying to close the income inequality gap between the Clintons and David Rockefeller.


Late baby deliveries have become quite normal here in the U.S. Today’s infants peek outside the womb and see the size of the national debt and they refuse to come out.


From Seth Meyers via NewsMax:

Hillary Clinton gave a speech at Columbia University this afternoon. She ended it the way Clintons always end their speeches, by saying, “That’ll be $200,000.”


Bruce Jenner will reportedly make a return to motivational speaking. And it’s going to be a little tougher, because now he’s only going to make 77 cents on the dollar.



Posted in humor, NewsBusted, video | Comments Off on DemonRat Financial Hypocrisy

Miraculous resurrected emails…

Posted by taxguru on April 29, 2015

In spite of the sworn testimony (perjury) by top IRS officials that Lois Lerner’s emails were destroyed  forever, some of them are now popping up.  Of course, the reason for the delay is obvious. The ones that actually mention how they were committing their crimes have been completely destroyed and the thousands of innocuous ones that don’t address their criminal actions are being dumped on the congressional investigators to slow them down.

FoxNews: IRS watchdog recovers thousands of missing Lois Lerner emails


The Hill:  Thousands of new Lerner emails found

Posted in Crooks, IRS | Comments Off on Miraculous resurrected emails…

All talk and no action…

Posted by taxguru on April 26, 2015

Overhauling tax code trendy on presidential stump, but real issue is will House GOP finally pass major reform?

Unfortunately, the chances of any positive tax reform that will help our economy grow are slim because it would require opposing King Barack Hussein O and his Fellow Travelers in Congress, something the GOP in DC refuse to do.  As they have shown over the past six and a half years, the GOP would rather bend over and let bHo have his way with them rather than do anything he doesn’t like and be called racists by the mainstream media propagandists..

Posted in GOP, TaxReform | Comments Off on All talk and no action…


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