One of exclusions available to reduce the tax liability that comes with receiving a cancellation of debt is available by calculating your insolvency at the time of the discharge of debt. Internal Revenue Code § 108(a)(1)(B) states that gross income does not include any amount which would be includible in gross income by reason of… Read more »
Cancellation of Debt – Introduction
One form of income that often catches taxpayers unaware is cancellation of debt. These are generally reported to the IRS through forms 1099-C or 1099-A. Settling a credit card debt with a bank for an amount less than what was owed might relieve you from one liability, but doing so potentially creates another liability to… Read more »
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Supreme Court decides for the Government in King v. Burwell
I am in the process of getting my masters degree in taxation. My professors give tests that not only question our ability to use practical application for hypothetical tax situations, but also charge us to be able to cite court rulings to back up our decisions. My tax practice is in the state of Oregon,… Read more »
ACA Impact on Health Reimbursement Accounts & Employer Payment Plans on Small Employers
All of the tax professionals facilitating webinars and seminars brought up the impact the ACA will have on employer nontaxable reimbursements to employees for health insurance and out-of-pocket medical expenses. Whether a plan was an out-of-pocket medical expense reimbursement plan under IRC (Internal Revenue Code) section 105, a health insurance reimbursement arrangement under IRC section… Read more »