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Foreclosure Cash For Keys Not Taxable As Service Income
One tax preparation point is worth mentioning here. I would have done the computations much as the CPA did and I would have also reported the $7,500 as income and then backed it out, which might have avoided a document mismatch. Frankly, I’m not sure that would have worked. And it is possible that that is what the Bobo’s CPA did and it got picked up anyway, but given the low stakes and the weakness of the IRS position, this really feels like everything was on autopilot from the point at which Greentree decided they needed to issue a separate 1099 for the “cash for keys”.
What To Do Right Away In Anticipation Of Coming Trump Tax Cuts
Generally, it is better to give appreciated property, but if you really want to put the pedal to the metal you will need to give some cash to get to the 50% of AGI limit. You might want to consider using a donor-advised fund which will allow you to spend more time deciding which specific charities to benefit. Also, some smaller charities don’t have the infrastructure to deal with large donations. The best-known donor-advised fund is probably the one run by Fidelity which has over $15 billion in assets. They explain the whole process pretty well. They are not the only alternative of course, but if you want to be picky about who you use, you should start looking into it now.
There has been some controversy about the effect that donor-advised funds are having on philanthropy. Apparently some people really like to see their charitable account growing and never get around to advising the fund to actually give anything to operating charities. All I can say is don’t be one of those people. In the situation, we are facing where your charitable deduction is likely worth much more on your 2016 return than it will be in the future the donor-advised fund is a very valuable tool.
IRS Can Sometimes Collect Corporate Tax From Former Shareholders
The shareholders of Little Salt were not alone in being caught by double taxation from a corporate asset sale. It seems that people not paying attention or thinking ahead in 1986 were legion. I shake my head and feel sad, but the people who founded MidCoast Investments, Inc. saw opportunity. They offered shareholders of companies a great deal. After the asset sale when all that was left in the company was money in the bank and an obligation to pay corporate income tax, they would buy the company from you.
A Cheer And A Half For Meritocracy
The system is rigged in favor of anyone who excels at getting her or himself educated to the graduate degree level and then working hard for decades. See, e.g., Barack...
Future Generations Endorses Hillary Clinton
One of the reliefs of post-election will be the end of campaign appeals in my inbox. It is my own fault, as I sign up for everything in the hope of getting material...
Live Blogging Election Night
We went to the Unitarian Universalist Church of Worcester to watch the results. First discussion was what station to watch. I was for Fox since I thought we might...
Top 100 S&P Companies Averaged 25% In Income Taxes Actually Paid
Originally published on Forbes.com. WalletHub's statement, last week, that the S&P 100 pay 28% in total income taxes was not as wildly wrong as I thought it would...
Not Every Women’s Rights Narrative Starts At Seneca Falls
.....memory is made, not found and what we remember matters. - Lisa Tetrault This post is something of a personal reaction to The Myth of Seneca Falls: Memory...
How Much Do Large Corporations Pay In Income Tax ? Probably Less Than You Think
In the case of BH, much of the difference comes from faster depreciation for tax purposes In one of the debates Donald Trump mentioned how much he loves depreciation. Warren Buffett has a more nuanced view of it). Berkshire’s net deferred tax liability grew by $1.263 billion. And as long as the company continues to put more property in service, at least on a dollar basis, than it retires that deferred tax liability, currently $63.199 billion will likely continue to grow.
New York Times Analysis Of Trump’s Tax Position Misses A Lot
What is most disconcerting to me about this particular Times piece is that it does not really appear that Trump was getting away with that much. He did not get a principal reduction from the bondholders, so requiring him to pick up ordinary income at that point would have really been kicking him when he was down. And he did give up equity in return for the more favorable debt terms. Unlike the Son of Boss shelters that would be coming later, everything about this was real. There were real casinos that lost a ton of money. After the restructuring there was as much principal as there had been beforehand and some equity had been surrendered.