U is for Unrealized Gains and Losses. We’re in the process of selling our house. It is not worth as much this year as it was a few years ago (this, according to Trulia and other valuation sites) although it’s worth more than when we bought it. For tax purposes, we will actually have a…
Taxpayer asks: I’m confused. Both my wife and I have home offices, each using about 5% of the total home square footage. Last year, we replaced the both the hot water heater and the washer/drier. For the hot water heater, I think it’s very clear, that improvement directly impacts our home office use, so I…
T is for Tenancy. If you ask taxpayers how their assets are titled, many will simply say “joint ownership.” Under the law, however, there is no such thing as simple “joint ownership” – assets may be held jointly in one of a few different ways. For federal income tax purposes, it’s important to realize that…
Wesley Snipes is a free man… mostly. TMZ is reporting that the 50-year-old film actor has been released from prison. According to the popular site, Snipes was released on April 2 and transferred to the New York Community Corrections Office. He will be on house arrest thereafter until July 19. If my math is correct,…
Who had the best holiday weekend? Looks like it might have been Dallas Cowboys quarterback Tony Romo, who signed a 6-year $108 million contract extension. Jerry Jones, Cowboys owner, president and general manager said about the signing: In today’s game, every NFL franchise understands the importance of production and continuity at the quarterback position, and,…
I’m a man, I’m not just a fashion designer. – Stefano Gabbana Now, Gabbana can add “tax evader” to his resume. Both Stefano Gabbana and his partner, Domenico Dolce, together known as the fashion duo Dolce & Gabbana, were fined in connection with charges of tax evasion this week by a Milan tax court. Prosecutors…
As Tax Day creeps closer, I’ve been getting a slew of messages – on Twitter, email, and Facebook – hopeful that the big day will be pushed off a little bit more this year. Nope, not a chance. It’s true that tax season feels as though it’s rushing by faster than ever this year. That’s…
S is for Statute of Limitations. All good things must come to an end… And even the Internal Revenue Service has a limit on how much time can pass before they may no longer assess and collect on federal income taxes. In the legal world, these time limits are called the statute of limitations (SOL)….
R is for Recapture Rule (Alimony). The rules for regular alimony payments are pretty simple. If you receive alimony payments, you report those payments as income at line 11. If you make court-ordered alimony payments, you can deduct those on your federal income tax return. The deduction is an “above-the-line” deduction, meaning that you don’t…
(Note: Now that this post is a few days old, not everyone gets the joke. I don’t want to spoil the surprise at the end but, er, read with a grain of salt. And don’t stop midway!) With sequestration in full swing, Congress has been searching for new ways to raise revenue for the nation’s…