Spidell's Federal Taxletter: Taxpayers denied refund in spite of next business day mailing rule


Who knew the concept of “next succeeding day” could be so complex?

By David Ellis, CPA 

Guest Contributor - August 2019 

When it comes to matters such as insurance claims, lawsuits, and tax refunds, it’s a pretty good general rule not to wait until the absolute very last day...


Spidell's Federal Taxletter: Marriage Tax Foreclosure Alert


The IRS can foreclose on a married couple’s jointly owned property even though only one spouse owes back taxes.

By David Ellis, CPA

Guest Contributor - June 2019

In most instances when two people join in marriage, it results in a lifetime of sharing. They share life’s triumphs and tragedies great and small. Sometimes, as in the case of...


Spidell's Federal Taxletter: The Innocent Spouse: A Close Look At A Classic Case


On appeal, the court sees a very different story. 

By David Ellis, CPA 

Guest Contributor - April 2019

At first it looked like Karen Wilson had finally caught a break. Her husband, Lloyd, had gone from a small-time self-employed insurance salesman earning about $30,000 a year, to a maven of international finance netting $20,000 a month...


Expertise.Com: Best Accountants In Pasadena, California 2019


Ellis & Ellis CPAs, Inc.

Ellis & Ellis CPAs, Inc. is an accounting firm backed by almost 55 years of service in the area. Services include tax entity preparation/compliance for... 


Opporty.Com: Top-5 Management Accounting Companies in Pasadena, California


David Ellis is the managing partner of Ellis & Ellis, CPAs, Inc. located in Pasadena, California. He has over 30 years of experience in the practice of Divorce, Trust/Estate, and other... 


AccountingWeb.Com: Advice on Dividing IRAs in a Divorce


By David Ellis CPA

Managing Partner

Ellis & Ellis CPAs Inc.

When a couple divorces, it is not unusual for the retirement plan of one or both spouses to be the most significant asset that must be divided. If the plan is a... 


Divorce Tax Alert: Turning Post Tax Reform Support into Equivalent of Deductible Alimony


By David Ellis, CPA

March 8, 2019

The Tax Cuts and Jobs Act of 2017 (aka Tax Reform) put an end to the deductibility of alimony for divorces when the agreement specifying the terms under which the alimony... 


Quick Tax Refund from Fire Loss Alert


By David Ellis, CPA

January 7, 2019

If you have an otherwise deductible “casualty loss” from a Federally Declared Disaster, there is a special election that allows you to deduct the loss on your tax return for the immediately preceding year. Thus, a person who paid income tax on a 2017 return could... 


Huge New Auto Tax Deduction Alert


By David Ellis, CPA

December 14, 2018

Tax Reform has given us many gifts, not the least of which is what I call “the get a giant tax deduction when you trade-in your business auto loophole”. Here is how it works, prior to 2018, when you traded-in your business auto, the basis of the old vehicle was automatically...


Divorce Tax Alimony Alert: Student Loan Payments Ruled to be Deductible Alimony


By David Ellis, CPA

November 13, 2018

Vanderhal v. Commissioner T.C. Summary Opinion 2018-41 (attached). The Tax Court has ruled that payment of former spouse's student loan obligations are deductible alimony despite IRS claim to the contrary...


Divorce Tax S Corporation Stock Alert: You can still Trust your Trust(s)


By David Ellis, CPA

November 8, 2018

In private letter ruling 2018834007 (attached) IRS has ruled that a S Corporation will not be considered to have a Second Class of Stock, (which would void the Company's S Corporation Status), because of... 


Divorce Tax Bankruptcy Alert


By David Ellis, CPA

November 7, 2018

In a recent Bankruptcy case, the court ruled that IRA and 401k funds that were awarded to man from his wife's accounts were not exempt from creditors. The court reasoned that the exemption only applied to the the person who originally created...


Divorce Tax Alimony Alert: Deducting alimony when divorce is not finalized prior to January 1, 2019


By David Ellis, CPA

November 5, 2018

In spite of much that has been written to the contrary, a strong case can be made that it is not necessary to have a divorce finalized prior to January 1, 2019, in order to deduct the related alimony payments...


Home Mortgage Tax Loophole?: Home Mortgage Money For College Tax Loophole Alert


By David Ellis, CPA

October 27, 2018

As most people know by now, Tax Reform put the final nail in the coffin of using the equity in your home to finance a college education via tax deductible home mortgage...


Divorce Tax Legal Fees Alert


By David Ellis, CPA

September 14, 2018

Tax Court Rules Rich Guy can’t deduct $3 Million in Attorney and other Professional fees paid for keeping $47 Million in Partnership Distributions out of the hands of his ex-wife.  Sky M. Lucas v. Commissioner T.C. Memo 2018-80 Docket No 24111-16, June 11, 2018...



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