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Electric Car Tax?
You might have received some tax credits for purchased a certain kind of hybrid vehicle, depending on the year, etc. Let’s ignore that benefit. Now you are driving pretty much gas free. Gas free or practically gas free also means many states are noticing a significant drop in tax revenues from the pump. Thus, electric cars…
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1041’s and Capital Gains
If a trust has capital gains, the trust pays the tax except in the final year when the trust is closed. In any other year, if beneficiaries receive a distribution, they are taxed on any ordinary income over and above deductible expenses. If there is not a distribution, the trust pays the tax on the ordinary income. Not…
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Personal Residence Sale – History of Law
A taxpayer’s principal residence is a capital asset. Upon the sale of a principal residence, the taxpayer realizes capital gain or loss. However, no loss is recognized, because a residence is personal in nature. In the case of a sale that produces gain, the Code, as amended by the Taxpayer Relief Act of 1997, provides an…
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Can Unused Rental Losses be Deducted in a Bankruptcy?
Can you deduct unused rental losses in a bankruptcy? LAW: Under IRC § 469(g), current and carryforward passive activity losses are fully deductible in the year of an entire disposition in a fully taxable transaction to an unrelated party. A qualifying disposition may create a Net Operating Loss (NOL) which can be carried back. See IRC § 172 Once…
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Who Paid the Most Tax ?
The latest year data available form the IRS indicates the top 10% of US taxpayers in 2011 paid 68.3% of all federal income tax paid in 2011. […]Read More… from Who Paid the Most Tax ?