| Tax Court |
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| The main purpose of the Tax Court is to give the taxpayer an opportunity to be heard before he or she is compelled to pay any tax within the Court's jurisdiction, including income, estate, gift, self-employment, or special excise taxes. When a taxpayer receives a notice of deficiency from the Internal Revenue Service, he or she may decline to pay the tax and may petition the Tax Court to review the deficiency. The Tax Court is the only judicial body from which a taxpayer may obtain relief without the payment of taxes. More... |
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| Stock Options |
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| Some corporations give their employees options to buy or sell stock or other property as payment for services. The question of when you are required to report income resulting from the receipt of the option depends on whether they are nonstatutory or statutory options. Your employer can tell you what kind of option you are holding. More... |
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| Disability Pensions |
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| Payments received from disability pensions financed by an employer are generally considered taxable income. These payments might include amounts for personal injury or sickness through an accident or health plan. If the taxpayer and the employer shared in the cost of the plan, only that portion of the payments resulting from the employer's contributions are taxable. If the taxpayer paid the entire cost of the plan, none of the payments are considered taxable income. However, if the payments were reimbursements for medical costs made in a previous year that were deducted as medical expenses, they may give rise to taxable income. More... |
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| Taxability of Property Exchanged for Corporate Stock |
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| You have decided to acquire enough stock in a corporation to control it by owning at least 80 percent of the combined voting power of all voting classes of stock and at least 80 percent of the outstanding shares of each class of nonvoting stock. You transfer property to the corporation, and you get your stock. Was there a taxable event? More... |
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| Deduction for Investment Interest |
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| Taxpayers often borrow money in order to buy property held for investment. The deductibility of this interest is not permitted if the property yields tax-exempt income. Even if the income from the investment is taxable, the amount of any interest deduction is limited by to the taxpayer's net investment income, which is defined by tax laws as the excess of investment income over investment expenses. More... |
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