| Transfer of Property between Spouses |
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| In general, if you transfer property to or receive property from your spouse, no gain or loss is recognized. This rule applies even if the transfer is made to a trust for the benefit of your spouse or to a former spouse if it was incident to a divorce. The Internal Revenue Code defines a transfer as "incident to a divorce" if the transfer occurs within one year after the date on which the marriage ends, or if the transfer is related to the ending of the marriage.More... |
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| Political Activity by Tax-Exempt Organizations |
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| Under the provisions of the Internal Revenue Code, exempt organizations are not permitted to participate or intervene in any political campaign on behalf of, or in opposition to, any candidate for public office. These exempt organizations include charities, educational institutions, and religious organizations. The federal courts have upheld this condition upon exemption from federal income tax as constitutional. More... |
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| Worthless Securities |
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| If a taxpayer who is not a securities dealer has invested in stocks, stock rights, or bonds that became worthless, he may be entitled to a tax break in the form of a deduction. The loss is only deductible in the year that the stock became worthless, and there is no deduction available for partially worthless stock. Congress has recognized that it is often difficult to determine exactly when a security became worthless. Thus, a taxpayer is permitted to file an amended return for the year in which the deduction should have been taken within the later of seven years from the date of the original return or two years from the date the tax was paid. If the taxpayer errs and takes the loss before the stock has become completely worthless, he can correct the error by amending the original return to eliminate the deduction and by claiming it in the proper year.More... |
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| Non-deductible Business Expenses |
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| Many expenses incurred in operating a business result in deductible expenses for federal income tax purposes. However, Congress has established that some expenditures are clearly non-deductible.More... |
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| Deductibility of Specific Medical Expenses |
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| Under the current tax law, medical expenses are deductible if they exceed two percent of the adjusted gross income shown on the tax return and if the taxpayer chooses to itemize deductions. But are all payments made for our health considered deductible medical expenses? Often, the Internal Revenue Service issues ruling giving taxpayers specific guidance on the deductibility of certain medical procedures and products.More... |
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