IRS Failed Again, Relief Granted Innocent Spouse By John R. Bullis

Nancy Bullis John's Articles

Windy and Richard Harris filed their 2011 individual income tax return.  In 2012 they separated and then were divorced. The tax return reported her sole owner business as a real estate agent and a second Schedule C with Windy and Richard as proprietors of “Harris Stables”.  He bought about 20 acres to do the activity-first to raise horses and later …

IRS Loses Another Tax Court Case – By John R. Bullis

Kim Pilant John's Articles

The issue is how to define “insolvency” to determine if the cancellation of debt is taxable income or not.  Code Section 108(d)(3) defines “insolvency” as “…the excess of liabilities over the fair market value of assets…”. Mr. and Mrs. Schieber had mortgage debt cancelled in 2009.  He was retired and received monthly payments from a retirement plan that was a …

There are Many Capital Gain Tax Rates – By John R. Bullis

Kim Pilant John's Articles

Someone asked the other day “what is the tax rate on capital gains?”.   Like most tax questions, the answer can be a little complicated.  It depends on several things. If the capital gain is for a stock or most other capital assets owned less than 1 year, the answer depends on your other income.  If you have relatively low taxable …

Home Mortgage Interest Tax Information – By John R. Bullis

Kim Pilant John's Articles

What is paid for interest on qualified home mortgages can be an itemized deduction on Schedule A of form 1040. The 2016 form 1098 reports the amount of interest paid and some new additional information.  It is to show the balance of principal owed at Jan. 1, 2016, the date the mortgage began and the address of the property that …

Poor Sam Wyly Owes IRS – By John R. Bullis

Kim Pilant John's Articles

Most folks know that our tax rules require reporting of worldwide income.  Now special forms are required to disclose foreign financial assets (Form 8938 and FinCEN 114). If the taxpayer does not live abroad, if the total value of foreign financial assets on the last day of the year is more than $50,000 for a single person or $100,000 for …

President Trump’s Tax Goals

Nancy Bullis Kelly's Articles

One month into a new President.  He’s checking things off his list that he promised to do.  One yet to be done has to do with MAJOR tax reform.  There is not enough room in a small column like this to go over all Donald Trump’s proposals, but here are a few that will impact most Americans which seem to …