asked
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
As a U.S. citizen graduating in May 2017 with no current income, can my non-resident alien father, living abroad, transfer funds to my bank account (less than $100,000 within a tax year) as a gift to cover my living expenses, and are these funds tax-exempt? Additionally, are there any documents required to prove the gift and does the origin of the wire transfer matter?
November 18th, 2024
I lived in property A from January to May and rented it on Airbnb for 13 days. I bought property B in March and owned it for 303 days in 2015. Out of these, 45 days were leased for free to the sellers, 15 days were spent on remodeling, and 92 days were rented at market price via Airbnb. Do I need to report income from property A? For property B, can I assume a 70% / 30% split between personal and rental use? How should I capitalize or expense the following for property B: $28K in interest (from form 1098), property tax, $20K in remodeling (with $10K having receipts and $10K having only check photocopies), $4K for a furnace (with only a check photocopy), $500 for a dishwasher, $1000 in utilities paid when the property was rented via Airbnb, and $1,200 for a couch?
May 1st, 2024
My son has a three-year-old child with court-ordered joint custody. His ex-partner claimed the child on her taxes for the whole year, while my son filed as single and had to pay taxes. Could he have claimed head of household with a qualifying child even if his ex claimed the child for the whole year?
July 5th, 2023
I e-filed my IRS return on January 24, it was accepted on January 28, and I have tax topic 152. I still only have one bar on the Where's My Refund (WMR) tool. Should I be concerned?
August 12th, 2023
I received a phone call from someone claiming to be a tax representative from the IRS, threatening legal action for back taxes and demanding immediate payment. The caller provided an IRM number and a phone number from Seattle, WA, and warned against discussing the matter with anyone. I feel this might be a scam. What should I do?
October 19th, 2023