TaxAudit Blog

As the law currently stands for individual taxpayers, starting in the 2026 tax year, you will be able to deduct estate planning fees related to tax planning.

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Details regarding the disposition of grouping of activities in order to more easily satisfy the material participation requirements for the RE Pro status.

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My brother's wife died and he was left with the house. He gifted (no exchange of money) me the house and I sold it. How do I report capital gains?

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Electing to group properties together into one activity to qualify for real estate professional status comes with some disadvantages. Let's explore more.

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Your son does not need to report or pay tax on the $70,000 you gifted him from the inheritance your wife received from her mother’s probate! Let's explore more.

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We sold my wife's parents' house. Do we have to pay taxes on it if we put it in a money market account in our name?  It depends on a taxpayer's circumstances.

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I received 3 1099 forms - 1 for interest and two from houses which were sold in the months after his passing. Is the estate required to file a return?

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As the person wrapping up your loved one’s financial affairs, you know at the very least you will need to file their final individual income tax return.

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New Jersey, NJ imposes a tax on the beneficiaries of estates. The tax return requires the tax be paid by the estate on behalf of all the estate’s beneficiaries.

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You can "deduct" real estate taxes paid over the course of owning a piece of land in the year the land is sold, if the land was vacant, but there is a catch.

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If the income items on the Schedule K-1 are sufficiently large, they will generate additional taxes due on your return. You will need to amend your tax return.

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Funeral and burial expenses can be deducted if they were paid out by the estate of the deceased person. However, most estates never use this deduction.

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Real Estate taxes might be deductible on your personal or business taxes, it depends on your situation. Let's start by looking at the tax assessor’s bill.

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The reality is you can sell your house to your child, grandchild, or anyone else for that matter, for $1. But just because you can doesn’t mean you should.

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Generally, when you inherit money it is tax-free to you as a beneficiary. However, like so much in tax law, the answer to this question is “it depends.”

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The IRS generally has three years from the date the returns were filed to audit. However, in certain circumstances a return can be audited within six years.

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Real estate closing costs can be pesky things. And since you are paying for them, can you at least deduct them from your taxes?

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Starbucks? Coffee beans? Lattes? What do they have to do with taxes? Don’t worry, we will get to that! But first, let’s discuss your Golden Years again...

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My husband and I bought a home. We sold our old house a few months later. Will the profit on the old house be taxed if we do not roll it into the new house?

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The expenses I paid out on my rental were $12,000 more than my rental income, yet my tax return shows a deductible rental loss of zero. Why?

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My wife and I bought a townhouse in 2014. What tax deductions can we take?

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I had a new roof put on the house. Is it tax deductible? A new roof is generally considered to be an improvement to the structure.

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If I'm going to do home repairs, such as a roof and heating, which will cost about $15,000, would it be better to take out a home equity loan to pay for it or..

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We live in Florida, and we are thinking about buying a second home in Maine for the summer months. Will we be able to deduct the mortgage interest on our taxes?

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We bought our home in 2009, in Arkansas, did major improvements, and then leased it out from 2010 though 2014. We now have the place up for sale...

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My personal residence cost basis is higher than the expected sale price. Is there a way to get a tax benefit from a loss on this property?

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I completed a short sale in 2014 and was wondering if it’s possible to avoid taxes on the difference. I sold it for $142,000, the bank got $127,000, and the...

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How do you know if you have spent substantially full time repairing and maintaining a rental property when you stay in it so it doesn't count as a personal day?

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We took out a home equity loan to redo our basement. The contractor did not perform the work as agreed and what was performed had to be torn out...

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I have a good friend who owns two rental homes here in California. The tales he tells regarding these “assets” are not for the faint of heart.

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