Tax planning ideas for individuals, businesses, estates and trusts, Ideas for building an extraordinary business, News about Financial Insider Weekly television series episodes
Read More
This week’s interview on Financial Insider Weekly is with William Mitchell, CPA Our interview subject is, “I owe back taxes to the IRS! Now what should I do?”
Tags: collection, debt, internal, irs, owe, revenue, service, Tax matters
According to Revenue Ruling 92-92 and page 3 of IRS Publication 4681, cancellation of debt attributable to passive activity expenditures, such as purchase of the rental property, is passive activity income. For a rental property, the debt cancellation income should be included on line 3 of Schedule E as “rental income” for the property.
Tags: cancel, debt, foreclosure, sale, short
California has enacted relief legislation for cancellation of mortgage debt relating to the acquisition of a principal residence, effective for taxable years 2009 through 2012.
Tags: california, cancellation, debt, residence, Tax matters
Governor Schwartzenegger vetoed SBX8 32 last Thursday, March 25, 2010. The bill included many provisions conforming California tax laws to Federal tax laws, including a limited conformity to an exclusion from taxable income for cancellation of debt for a principal residence.
Tags: california, cancel, debt, residence