A couple got behind on their mortgage. They refinanced in 2010, borrowing an additional $45,000 to pay the past due on their mortgage. The mortgage company issued a 1098 for that year saying it had received less than $10,000 in interest, but the couple claimed that they had paid $48,000 in mortgage interest. The IRS…
Category: Tax
Employment Taxes
In many cases, people pay for domestic and other help, and do not withhold any employment taxes. Then they die. Some say that the executor should ignore the problem. But the problem with that approach is that the executor, or the successor trustee of the living trust, has an obligation to pay taxes including the…
Inflation Adjustments for Income, Estate, Gift and GST Taxes Coming
In November, Treasury and the IRS are expected to announce the inflation-adjusted rates for all income tax brackets, estate and gift tax exemptions, and the generation-skipping transfer tax exemption. Many commentators have already estimated that the 2015 estate and gift tax exemption, and GST exemption, will be $5,430,000 and the annual gift tax exclusion will…
Higher Income, Capital Gains and Medicare Taxes – and What to Do
Beginning January 1, 2013, for tax years that end in 2013, the new 3.8% Medicare tax on net investment income goes into effect for single taxpayers with $200,000 or more of adjusted gross income, and married taxpayers filing jointly of $250,000 or more of adjusted gross income. Tax Applies to ALL Profit on Real Estate…