In the case of a short-sale nonrecourse loan, should the cancellation of debt (COD) be subtracted from the cost basis or added to the sales price, as per IRS forms 4797, 4681, and Pub 544?

August 30th, 2024

I received a Sch K-1, form 1041, Box 14 with item code H for Foreign Gross Receipts and expenses, categorized as passive income from other countries with a gross amount of $510. Additionally, Box 14 has a code B for Passive Income from other countries with taxes of $36. Do these amounts need to be reported on other forms, and if so, which forms and lines should they be reported on? Also, can the $36 foreign tax be directly reported on page 2 of the 1040 as a foreign tax credit, given that I have other foreign tax credits but do not exceed the $600 allowed for MFJ?

February 14th, 2023

I received an answer from Jax Tax that the 1099 comes from the K-1. However, there is no K-1, only the 1099s that are scrambled on the Schedule E, making them incompatible to add other miscellaneous expenses and compounding errors for depletion. I tried to respond to the answer but could not. I do not have a smartphone or other forms to communicate with you. So far, your answer does not have any help for me at this time!

August 24th, 2024

I think I successfully used TurboTax for tax year 2011, but I'm not sure it went to the IRS. Could you verify that for me please?

December 15th, 2023

I had a tax debt to the IRS for unfiled tax returns. My wife had no taxable income for those years. My accountant, against my instructions, filed the returns as married-filing jointly, pulling her into the tax debt and causing a lien on her property. The accountant just said 'oops'. This has caused significant problems, including the inability to sell the house. What can I do?

November 13th, 2024