According to Revenue Ruling 92-92 and page 3 of IRS Publication 4681, cancellation of debt attributable to passive activity expenditures, such as purchase of the rental property, is passive activity income. For a rental property, the debt cancellation income should be included on line 3 of Schedule E as "rental income" for the property.
Avoiding California real estate property tax reassessment
On this week’s Financial Insider Weekly interview to be broadcast in San Jose and Campbell May 5 we discuss California real estate change of ownership rules as they relate to estate planning and business tax planning.
Gift tax break for 2010 may be an opportunity
Under the Economic Growth and Tax Relief Reconciliation Act of 2001, the maximum federal gift tax rate for 2010 is 35%. If Congress does nothing, the maximum rate will return with a vengence to 55% in 2011, plus an additional 5% surtax for taxable transfers over $10 million until the benefits of lower brackets are phased out.
Coping With Federal Estate Tax Repeal
On this week’s interview on Financial Insider Weekly to be broadcast in San Jose and Campbell this Wednesday, April 28 with attorney James Quillinan we discuss the implications of the repeal of the federal estate tax for 2010,
California extends debt cancellation tax relief for homeowners
California has enacted relief legislation for cancellation of mortgage debt relating to the acquisition of a principal residence, effective for taxable years 2009 through 2012.
S Corporation advantages
Although S corporations have some disadvantages compared to partnerships and limited liability companies, they also have some important advantages.
Real Estate Investment Alternatives
On the Financial Insider Weekly interview to be broadcast in San Jose and Campbell this Wed, April 21 at 4:30 pm Comcast Ch 15, I discuss with Lori Greymont real estate investment alternatives other than real estate foreclosure packages or REOs
Investing in real estate foreclosure packages (REOs)
On this week’s interview on Financial Insider Weekly we discuss investing in real estate foreclosure pages or REOs.
Hedging strategies for employee stock options
On this week's interview on Financial Insider Weekly to be broadcast in San Jose and Campbell this Wednesday, April 7 we discuss hedging strategies for employee stock options, including incentive stock options (ISOs) and non-qualified stock options (NQOs).
California cancellation of debt conformity vetoed
Governor Schwartzenegger vetoed SBX8 32 last Thursday, March 25, 2010. The bill included many provisions conforming California tax laws to Federal tax laws, including a limited conformity to an exclusion from taxable income for cancellation of debt for a principal residence.