I received a principal reduction on a rental property mortgage from $182,804.73 to $90,441.73, resulting in a 1099-C for $92,363. If this amount is added to my income, I owe the IRS $24k. Is there a way to reduce the amount of discharged debt that counts as income?

January 18th, 2024

I was a victim of a scam involving my rental property's mortgage loan, resulting in a monetary loss of over $10,000. I paid $1,500 to an attorney for suing the company, and later became a class representative in a class action lawsuit that awarded me a $1,500 check. I received a 1099-MISC for this amount. My questions are: 1) Do I need to report this as income and be taxed, even though it only recoups part of my loss and the attorney fee I paid? 2) If I do need to report it, how can I report it with my rental property since Turbo Tax doesn’t allow me to put in an income in a box other than rents? 3) If I do need to report it and can’t report under rental property, how can I make this not “taxable” as I don’t think it should be since I’m just recovering some of my previous loss.

June 27th, 2024

A client bought a used Tesla Model S (2012 model) in 2016 for business purposes. Is the tax credit available to her through her business? Does the car have to be new or the owner new?

August 4th, 2023

Is the $3K earned in a five-year-old ROTH IRA taxable, and is that the amount the early distribution penalty is based on, given the taxpayer is 47 years old, has contributed $15K over the years, and liquidates the ROTH for $18K without meeting any exceptions?

July 7th, 2023

Do we have to amortize our VA funding fee, which is listed under line 5 mortgage insurance premiums on my 1098, or can we claim it all in one year?

May 4th, 2023