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...
by | Jun 17, 2011 | Accounting & Bookkeeping, Business Profit & Cash Flow Tips, Business Success Series, Cash Flow, Cost Cutting, Current Affairs, Income Taxes, Small Business Owners, Small Business Success Series, Surviving an IRS Audit Series, Tax Tip of The Week
Every business owner has tons of business expenses that they “need” in order to run their business. And, every business owner believes that everything they spend should be deducted on their tax return. But, the tax code makes reporting these expenses to the IRS...
by | Jun 10, 2011 | Accounting & Bookkeeping, Books, Cost Cutting, Current Affairs, Tax Tip of The Week
On July 1, 2011 the federal unemployment tax (FUTA) rate is set to drop by 0.2% when a special surtax is scheduled to lapse. President Obama is pushing for it to be extended permanently; but, congress is unlikely to go along with the extension. This means that...
