The Tax Professionals Blog

When petitioners filed for Chapter 7 bankruptcy, they sought to exclude roughly $300,000 in an inherited individual retirement account (IRA) from the bankruptcy estate using the “retirement funds” exemption.

Background: As you all should know Sec 580b of the California Code of Civil Procedure (CCP) provides that no deficiency shall be owed or collected, and no deficiency judgment shall be awarded, with regard to a purchase money trust deed on a dwelling for not more than four families given to a lender to secure repayment of a loan that was used to pay all or part of the purchase price of that dwelling, occupied entirely or in part by the purchaser.

The IRS announced that it is discontinuing its historical opposition to this exclusion and will now treat Medicaid waiver payments as excludable regardless of whether care provider is related or unrelated to eligible individual.

The California Competes Tax Credit is an income or franchise tax credit available to businesses that come to California or stay and grow in California. 

The Tax Court denied his deductions for transportation and other auto-related expenses involving travel between his residence and various worksites.