Category Archives: Income Tax

IRS Issues Summer 2007 Statistics of Income Bulletin

Courtesy of IRS – IR-2007-153 WASHINGTON — The Internal Revenue Service today announced the release of the summer 2007 issue of the Statistics of Income Bulletin, featuring data from 21.5 million individual income tax returns that reported non-farm sole proprietorship activity in tax year 2005. Profits from all non-farm sole proprietorships totaled $269.9 billion in […]

Tax on Barry Bonds’ Ball

Today we hear from Christine in PA who throws us this curve ball. She says, “I just saw on the news that the gentleman that caught Barry Bonds 756th home run ball is selling it because he can’t afford the tax bill for just possessing it. I’m not aware of the tax that would be […]

Related Parties – Installments

Today we hear from Barry in WI who is doing research. He says, “I am searching for the IRS definition concerning related parties and installment notes between related parties and any new cases concerning this issue.”

Charity Buys Raffle Ticket

Today TaxMama hears from Jim in Missouri who’s come up with a winner. “I am on the board of directors for a Lutheran school. We wish to enter a raffle for a prize (car, jewelry, etc.), then offer whatever what is won at our annual dinner/silent auction night. If we win one of the items […]

IRS Wants YOUR opinion – Updates to Corporate and Partnership Tax Forms

IRS Seeks Comments on Updates to Corporate and Partnership Tax Forms WASHINGTON — The Internal Revenue Service has released for comment and discussion draft revisions to Form 1065, U.S. Return of Partnership Income, and Form 1120, U.S. Corporation Income Tax Return. The IRS plans to have the forms and related schedules ready for use for […]

Clergy Home Building

Today TaxMama hears from the Minister’s wife in Kentucky, who tells us, “My husband’s housing allowance is exempt from taxes. We are currently building a home, while temporarily living with relatives until its completion. Will we be able to deduct any of the expenses from the construction of this new home? For example, we’re already […]

Military Tax Relief Bill

Courtesy of NAEA Finance Members Introduce Military Tax Relief Bill Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Chuck Grassley (R-IA) this week introduced legislation that would grant significant tax breaks to members of the military, veterans, and their families. S. 1593, the Defenders of Freedom Tax Relief Act of 2007, would: Make […]

Inmate Income

Today TaxMama hears from Karen in the Tax Parlor, who’s curious. “I’m seeing in my tax prep software, a reference to “inmate income”. Is income earned by inmates taxed or handled differently? Just curious.”

State Taxes

Today TaxMama hears from Georgette in the Tax Parlor, who says. “While I assume that I should be reporting the income I earn online, ClickBank in particular, I am unsure about state tax for PA. I am not charging state tax for digital downloads. So do I only have to report the income I make […]

Lottery Win

Today TaxMama hears from Brain, in the Tax Parlor, who tells us. “Recently I won $4,000 in a state lottery. I spent about $500 for the purchase of a batch of lottery tickets all at once. I was wondering if I could subtract the cost from the proceeds I won?” Dear Brain, I’ll bet that’s […]