How To Report Gains and Losses from Securities Transactions – IRS Form 8949

The requirements for reporting short-term and long-term transactions on separate IRS Form 8949's by type A, B or C are still required. When the totals on brokerage statements include both type A and type B transactions, you will need to

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Posted in Capital Gain, Capital Loss

Determining Tax Basis and Holding Period

According to IRS Publication 544 holding period is generally speaking the length of time a capital asset is owned. It is important because of the tax benefits of long term capital gain or loss treatment according to IRC Sec 1223. If

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Posted in 1031 Exchange, 1231 Exchange, Asset Classification, Basis, Capital Gain, Capital Loss, Cost Basis, Tax Guidance & Preparation

IRS Form 982 – Reducing Tax Attributes of Depreciable Property for Cancelled Debt

If debt is canceled in a bankruptcy case or during insolvency you must use the excluded amount of debt to reduce certain “tax attributes” including the basis of certain assets as well as losses and credits. Essentially by reducing tax

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Posted in Bankruptcy

Self Employed Health Insurance Insurance Deduction: Worksheet v. IRS Publication 535

If you qualify to take the deduction, use the Self-Employed Health Insurance Deduction Worksheet to figure the amount you can deduct. However use IRS Publication 535 instead if any of the following applies. You had more than one source of income subject

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Posted in Deductible Expense, Health Insurance, Partnership, Self Employ, Small Business, Sub-chapter S

IRC 108 Tax Obligations in Bankruptcy

First off regarding income, do not include a canceled debt in gross income if any of the following situations apply: The cancellation takes place in a bankruptcy case under the U.S. Bankruptcy Code. The cancellation takes place when the debtor

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Posted in Bankruptcy, Cancelled Debt

Taxes, Insolvency and the Bankruptcy Estate

You are insolvent when your liabilities exceed the Fair Market Value (FMV) of your assets. It is important to determine your liabilities and the FMV of your assets immediately before the cancellation of debt to determine whether or not you are

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Posted in Bankruptcy, Insolvent

Ranking Tax Debt in Bankruptcy

According to IRS Publication 908, Bankruptcy Tax Guide, generally the automatic stay rules prevent a creditor from taking actions to collect debts incurred before a bankruptcy petition is filed. However automatic stay rules do not universally apply. Exceptions include an IRS

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Posted in Bankruptcy, Cancelled Debt

Exemption from IRS Filing in Bankruptcy

Here is the hard part, to qualify: 1. The corporation must have ceased business operations and must have neither assets nor income for the tax year. 2. The exemption request must be submitted to the local IRS Insolvency office handling

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Posted in Bankruptcy, Foreclosure, IRS Centralized Insolvency, Tax Filing Status, Tax Guidance & Preparation

IRS Notice 2006-83: The Bankruptcy Estate

When an individual files a bankruptcy petition under chapter 7 or 11 of the bankruptcy code a bankruptcy estate is established. The bankruptcy estate is treated as a separate taxable entity. If a trustee is appointed, the trustee is responsible

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Posted in Bankruptcy, Entity Classification, Foreclosure, Tax Guidance & Preparation

What is a Dependent Qualifying Relative?

According to IRS Publication 501, Exemptions, Standard Deductions and Filing Information. a dependent qualifying relative can be any person who lives with you all year, is not a qualifying child of another taxpayer, and someone for whom you provided over half of his

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Posted in Dependent
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