| Reparation Payments |
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| Congress has specifically excluded from gross income payments received after January 1, 2000, by individuals who suffered Nazi persecution during World War II or by their heirs or estates. These excludable payments are also not included in any tax provision that takes into account excluded income in computing modified adjusted gross income, including the taxation of social security benefits. More... |
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| Mailing a Tax Return |
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| Even though more and more taxpayers are filing their returns electronically each year, there are still millions of individuals who elect to file paper returns. You complete the appropriate forms, include any required attachments, stuff the whole package into an envelope, and march down to the local post office to complete the process. More... |
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| Civil Damages for Collection Actions |
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| What if you feel that an Internal Revenue Service employee intentionally disregarded the law in collection procedures against you? Do you have any recourse against the government? Surprisingly, depending on the facts of your case, the answer just might be yes. More... |
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| Family Partnerships |
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| Under certain circumstances, Congress permits income splitting among numerous family members to avoid higher tax brackets by the use of the "family partnership." If capital is a material income-producing factor in the business, a family member will be recognized as a partner for federal income tax purposes only if he or she acquires a genuine capital interest in a partnership through a bona fide transaction. He must actually own the partnership interest, and he must actually control it. The transfer may be accomplished by gift or by a purchase. Capital is an income-producing factor if the operation of the business requires substantial inventories or investments in buildings, machinery, or equipment. More... |
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| Mortgage Interest Credit |
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| Low-income taxpayers who purchase a residence may be entitled to a federal income tax credit for part of their home mortgage interest paid each year. The credit is a direct dollar for dollar reduction of taxes owed. Generally, a qualifying principal residence may not cost more than 90 percent of the average area purchase price, but it can go as high as 110 percent in some targeted areas. More... |
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