Life Insurance By John R Bullis

Nancy Bullis John's Articles

Life insurance can be great to provide benefits to the family, charities or others.  The death benefit is generally tax free! It is best to work with an experienced independent agent, in person.  Buying a policy over the internet may result in buying a policy that does not provide all the flexibility and benefits that would be best for you.  …

New Waiver of IRA 60 Day Replacement Rules – By John R. Bullis

Kim Pilant John's Articles

IRS Revenue Procedure 2016-47 gives information and guidance about waivers of the 60 day rollover requirement of IRA distributions.  You can print it out and use the model letter IRS provided. If you take a distribution from your IRA, 403(b), 457(b) or a qualified retirement plan, you can pay it back within 60 days and there is no tax on …

ROTH IRA Conversions Using Planning – By John R. Bullis

Kim Pilant John's Articles

You can convert your regular IRA to a ROTH IRA. The value converted is taxable income.  If the value goes down after conversion, you can change your mind and cancel the conversion if you do it by Oct. 15th of the year following the conversion. It is called Cherry Picking that gives you the ability to convert to several ROTH …

Selling a Stock to Reduce Your Income Tax By John R. Bullis

Nancy Bullis John's Articles

No one I know makes 100 decisions and finds all 100 were right or good decisions.  We all make mistakes. If you purchased a stock say for $10,000 and the value has gone down to $6,000, maybe you should consider selling it to recognize a capital loss. Capital losses are deductible first against any capital gains (both short term and …

Refinancing A Home Mortgage – By John R. Bullis

Kim Pilant John's Articles

Many folks believe home mortgage interest rates will increase in the near future. If you have an adjustable-rate mortgage or a high fixed rate mortgage you got some years ago, maybe you should look into refinancing now. The tax rules on deducting interest on your new home mortgage loan can be a little complicated. The interest on the new loan …

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 …