by | Sep 7, 2011 | Accounting & Bookkeeping, Cash Flow, Current Affairs, Income Taxes, Tax Tip of The Week
The following is a list of tax breaks that are scheduled to expire at the end of this year: The 2 percent cut to the employee share of social security tax. College tuition write-offs. The $250 write-off of teacher supplies. The write-off of state sales tax. The 100...
by | Aug 30, 2011 | Current Affairs, Income Taxes, Tax Tip of The Week
Married taxpayers have many benefits when filing a joint tax return. But joint filing comes with a catch. Each spouse is liable, jointly and separately, for any tax, interest, and penalties related to the return. This liability exists even after a divorce. This...
by | Aug 8, 2011 | Current Affairs, Income Taxes, Tax Tip of The Week
In this economy it is not unusual for a taxpayer’s debt to be forgiven or just written off. In general, cancelled debt that the taxpayer was personally liable for is taxable. But, there are the following exceptions where cancelled debt is not taxable: Cancelled debt...
by | Jul 29, 2011 | Books, Cash Flow, Current Affairs, Income Taxes, Personal financial planning, Tax Tip of The Week
These are common question from my clients. Like most things in tax law the answer is not simple. First, property received from an inheritance is not taxable. This includes cash, property, stocks & bonds, below-market sales, debts that are forgiven and partial...
by | Jul 24, 2011 | Accounting & Bookkeeping, Current Affairs, Income Taxes, Tax Tip of The Week
A tax court ruled (Wheeler, TC Summ. OP. 2011-83) that a taxpayer could not deduct mortgage interest on payments she made on her boy friend’s house that she also lived in. The facts presented during the trial also showed that she paid the entire mortgage at one point,...
by | Jul 15, 2011 | Accounting & Bookkeeping, Current Affairs, Income Taxes, Tax Tip of The Week
The case involved a mother who was diagnosed with dementia. Her doctor certified that she needed continuous care to ensure that she took all her medicine. Her son hired caregivers to assist her. The tax court ruled (Est of Baral, 137 TC No.1) that these payments were...
