Go to My Way Is Better - A Look At Income Taxes
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posted by
star4sky5
on January 12, 2007 at 8:36 PM
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Bankruptcy Is Section 108 Gain
Evil Spender Woman is not married at this time. I will find a usitable mate later. As for bankruptcy, it is likely that the wife also signed on the note and they would have section 108 gain. Because they are in bankruptcy, one of the requirements for excluding income from taxation, they would have to reduce any tax attributes they might have. After that, they ould have to follow the provisions of IRC 1017 to reduce the basis in real estate, depreciable property first. Don't forget to file form 982 with the 1040.
Who can explain tax in 55 words or less?
posted by
taxguy
on January 12, 2007 at 8:32 PM
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I came late to the story
Is the Evil Spender Woman married to someone or is she just messing up her own finances?
Oh BTW, the Paulsen scenario, from his first run for president, was from a speech where he was explaining different economic systems in terms of a man with two cows:
In capitalism, the man sells one cow to make the downpayment on a bull. Then he puts both in his wife's name and declares bankruptcy.
Explain the tax ramifications in fifty words or less. Be specific. (Oh, sorry, that was Evil English Teacher channelling through me.)
posted by
cpklapper
on January 12, 2007 at 5:48 PM
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