When property is divided up in a divorce, there are no immediate tax consequences. Therefore, if you transfer your interest in the home to your spouse, it will not result in a taxable gain or loss to either you or your spouse. However, let's say that your spouse assumes the home at the community basis. Generally, community basis is what was jointly paid for the home plus the … [Read more...] about Dividing Property in a Divorce
Tax Tips for Self-Employed Individuals
If you are in business for yourself, or carry on a trade or business as a sole proprietor or an independent contractor, you generally would consider yourself self-employed, and you will need to include on your tax return your income and allowable business expenses to determine your net profit. Your net profit is subject to both income tax and self-employment tax. Here are some … [Read more...] about Tax Tips for Self-Employed Individuals
100% Write-Off for Heavy SUVs Used Entirely for Business
The 2010 Tax Relief Act provides a limited-time 100% bonus depreciation allowance for qualified property which allows taxpayers that buy a new heavy SUV and use it entirely for business to write-off the entire purchase price in the placed-in-service year. Heavy SUVs are vehicles with a gross vehicle weight (GVW) rating of more than 6,000 pounds which are exempt from the luxury … [Read more...] about 100% Write-Off for Heavy SUVs Used Entirely for Business
IRS Offers New Opportunity to Come Clean On Offshore Accounts
The Internal Revenue Service recently announced a special voluntary disclosure initiative designed to bring offshore money back into the U.S. tax system and help people with undisclosed income from hidden offshore accounts get current with their taxes. The new voluntary disclosure initiative will be available through Aug. 31, 2011. Each United States person who has a … [Read more...] about IRS Offers New Opportunity to Come Clean On Offshore Accounts
Is the Income Taxable or Non-Taxable?
A question that comes up frequently is whether income you received is taxable or not. Generally, most income you will receive is considered taxable, but there are situations when certain types of income are partially taxed or not taxed at all. To help taxpayers understand the differences between taxable and non-taxable income, the Internal Revenue Service offers these common … [Read more...] about Is the Income Taxable or Non-Taxable?