A client has a house he has lived in since 2002, with a first mortgage of $590,000 and a second mortgage of $209,000 that was forgiven on October 30, 2015. The bank is foreclosing on the house, and the house is valued at $700,000. Is the cancellation of the second mortgage debt tax-free since it has been his primary residence? Is the house considered an asset as of October 30, and how does this affect his tax situation if the first mortgage is successfully foreclosed?

May 3rd, 2023

My wife and I operate an S Corp in NYC. In February 2015, we sold our apartment building at a gain and purchased another building for far less through a Section 1031 exchange. We have long-term capital gains on the sale less the amount reinvested into the 1031 exchange. Can we take these monies out and invest them personally without paying tax on these monies again? How would I account for this withdrawal on my books? Is this double taxation?

February 7th, 2023

What is the correct way to use a small business loss from 2014 as a deduction on 2015? Can it be done on Schedule A, line 28 under miscellaneous deductions?

May 28th, 2023

Our Subchapter S Corporation sold our office/warehouse building used since 2007 for a $140,022 loss. Is the proper treatment treating this as an ordinary loss on Form 4797 and showing it on line 4 of 1120S? We had no other gains or losses.

March 30th, 2024

Can I include my stepdaughter and her son on my taxes to claim head of household, even though I don't claim them as dependents and they file their own taxes, while I am divorced from her father who does not live with us?

September 16th, 2024