Taxpayer asks: I sold a primary residence last yr and bought a new one. I did not gross over $250,000 on the sale of the house. What figures should I pay attention to for reporting purposes from the closing sheets? I presume that any taxes paid out prior to the sale of the house are on…
Continuing the list of 40 positions not to take on your federal income tax return because they have been deemed frivolous or fraudulent according to IRS: 8. Only certain types of income are taxable, for example, income that results from the sale of alcohol, tobacco, or firearms or from transactions or activities that take place in interstate…
Continuing the list of 40 positions not to take on your federal income tax return because they have been deemed frivolous or fraudulent according to IRS: 3. A taxpayer’s income is excluded from taxation when the taxpayer rejects or renounces United States citizenship because the taxpayer is a citizen exclusively of a State (sometimes characterized…
Taxpayer asks: I know you have probably gotten these questions hundreds of times, but sorry I need to ask again for my own benefit. First off, I have a little business on the web for which I am self employed and have no employees. This business has been around for a few years however I…
Continuing the list of 40 positions not to take on your federal income tax return because they have been deemed frivolous or fraudulent according to IRS: 20. A taxpayer may avoid tax on income by attributing the income to a trust, including the argument that a taxpayer can put all of the taxpayer’s assets into…
The IRS released its list last week of 40 positions not to take on your federal income tax return because they have been deemed frivolous or fraudulent. The penalties for filing income tax returns based on a frivolous position increased last year from $500 to $5,000, plus interest and additional penalty. Over the next month,…
Luck o’ the Irish to you.
Here’s a newsflash:Richard Hatch doesn’t like prison. I know, stunning. Hatch continues to maintain his innocence, claiming that CBS had agreed to pay his taxes (but of course!), despite his being convicted on tax evasion charges. He claims that his stay at the Federal Correctional Institution in Morgantown, WV, a minimum security facility, is “horrendous”….
I’ve received a number of queries about the capital gains exclusion for the sale of a personal residence (more on that next week). But it made me start thinking about the policy reason for exempting gain and why a limit would be imposed. So, I’m curious to hear what you think. Today’s Fix the Tax…
Taxpayer asks: My mom gave me money through my paypal account. There were 3 separate transactions totaling $380 but was non-business related, do I need to claim these transactions along with the other income from my business since they used my PayPal account?Taxgirl says: Absolutely not! Though I will take this opportunity to discourage you…