So, you’ve purchased QuickBooks with the expectation that it will solve all of your bookkeeping problems, right? Then, you find out you don’t even know where to begin!

In a recent court case (TC Summ OP. 2011-17) the Tax Court allowed an interest deduction for a house that was never built. A married couple took out a loan and bought a beachfront home, tore it down and planned to build a new house on the site. However, they could not do so until a state environmental agency granted them a permit. That process dragged on for two years. By that time, the local real estate market had crashed and the couple couldn’t get a loan to cover the construction costs, so they sold the land at a loss.

The IRS Office of Chief (legal) Council provided a clarified interpretation of income tax debt discharged in bankruptcy. The IRS and the courts have determined that tax debts may be discharged in bankruptcy in the past, but in this determination, they held that individual income tax debts do not qualify for discharge.

In these difficult financial times and declining home values, we have helped numerous clients navigate the tax issues of Cancellation of Debt (COD). A COD is created when a taxpayer sells their home in a short sale (sales price is less than the mortgage amount), has a property foreclosed upon, or settles a credit card debt for an amount less than the current balance.

Have you ever wondered if the group that you donated money to is a qualified charitable organization that makes your donation tax deductible?

From May 1, 2012 – June 15, 2012 the State of Ohio will allow you to pay any unpaid Ohio taxes and waive all penalties and half of the interest of any balance due amounts.