I am transitioning from filing married jointly to filing married separately with two separate addresses. I need to know how to report our income, given that Wisconsin is a community property state. My husband is semi-retired with two businesses, one of which is an LLC where he is the sole member, and he made approximately $96,000 with a profit of $18,000 after expenses. He also has a small farm with a loss. I only made $1,000 from his business. How should we report our income and deductions?

October 30th, 2024

My CPA omitted information in 2013 and 2015, causing me to be audited and pay more taxes than necessary. My husband's pension was listed on two 1099 forms, but only one was included in my taxes. This omission is going to cost me a significant amount of money. Can I sue my CPA?

December 10th, 2024

A married couple living in the state of Texas got a final divorce in May of 2015. Living in a community property state, how do the spouses allocate income and deductions that they incurred up to the date of the divorce for tax purposes?

July 30th, 2024

How do I calculate line 20b on form 1040? I work and have one W2. My husband has a pension, and we both receive Social Security benefits.

March 16th, 2023

We closed on a short sale (Freddie Mac) last November, settling on the 1st mortgage but facing a 2nd mortgage issue. The bank on the 2nd mortgage agreed to a $3,000 down payment and $133 monthly payments for 3 years. We were informed we would be issued a 1099 for $125,000 (the 2nd mortgage amount) and owe the IRS approximately $30,000. Our accountant thinks we can claim insolvency, but our financial advisor disagrees. We used very little of the 2nd mortgage to pay down the loan, and most of the HELOC was spent over 1-2 years. The bank is threatening to turn the debt over to a collections agency and is holding back the forgiveness of debt letter. We are expecting an inheritance soon, which could affect our insolvency status. What are the tax implications, and what should we do?

July 6th, 2023