So…your spouse or ex-spouse effed up on your joint tax return, either deliberately or accidentally. The IRS sends a letter to both you and your spouse or ex-spouse and is now requesting money from not only him/her, but you. How is this fair? You’re not the one that made the mistake or purposely misled them. [...]
The premium tax credit is available for those who sign up for the Healthcare.gov Marketplace otherwise known as Obamacare (the latter nomenclature may be somewhat pejorative, but that’s not really for me to decide). This credit therefore requires you to get insurance through the government sponsored exchange. It is only available under those circumstances. As [...]
When you sell income producing property related to your business, like machinery or a moonwalk. You have to report that sale somewhere on your return. The result can be an ordinary gain or loss or a capital gain or loss. Unlike income generating property not used in a business, property used in an organized business [...]
http://www.cbs.tc/ This article deals with the nuts and bolts of passive activities and specifically the deductibility of their losses. This is a subject that should be important to people because more and more individuals have investments that qualify as passive activities, and as such could use an introduction into what they are, how their losses [...]
Divorce is ubiquitous. It’s basically an American institution at this point and really a cousin of marriage. In fact, it appears to be so common that the presence of divorce seems to be a factor in the decline of marriage rates, amongst other sociological phenomenon, but enough of my moralizing. The point is divorce has [...]
“Adjustments to income” sounds like you go to the tax shop and they adjust your income, so it gives you a smoother ride through life. In reality, these are amounts that subtract from your income before you take your standard or itemized deduction. They are therefore “above the line” deductions, and are seen in a [...]
There are always a lot of questions when it comes to people’s primary residences. These inquiries generally pertain to capital gains and losses along with deductibility of certain expenses. With the insane increase in the value of homes in the United States over the last thirty years, this issue makes sense to those who have [...]
(For a discussion of the basis and adjusted basis of assets, see here.) The sale of property is generally the first thought I have when I think of the term “taxable event.” There are exceptions but, if an event renders the disposal of an asset taxable, and that disposal was voluntary, then a sale has [...]
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