sggaq.blogg.se - Turbotax home and business 2017 trial

Whether Bulakites is entitled to deduct the payments that he sent his wife in the 20 tax years.

In 20, the taxpayer paid her approximately $50,000 per year.īy trial in the Tax Court, the remaining issues included: Though no formal agreement was signed, he agreed to increase payments to his ex-wife to $5,000 per month. As part of their separation agreement, Bulakites was to pay his ex-wife $2,000 per month for spousal support until the sale of the marital residence, at which point his payments would increase to $8,000.Since he had previously been unsuccessful in his attempts to sell the house, Bulakites claimed at trial that there was no hope of a sale. In 2009, Bulakites and his ex-wife legally separated and were divorced a year later. However, the Great Recession affected his ability to sell his house for a profit, and Bulakites could only pay back part of the amount. The promissory note was due in less than a year, but Bulakites planned to sell his home and use the proceeds to pay the note when it came due in October 2008.

To pay the settlement, the taxpayer took out a loan that was secured by his home. He was named as a defendant for his work on the plan, and in 2007, he was required to pay $500,000 as part of a global settlement. Several years prior, Bulakites was involved in a lawsuit that arose when 401(k) plan participants at Wasley Products sued the company where Bulakites worked at the time. The taxpayer had a rough couple of years leading up to the years at issue, and some of the events came into play in the case. Bulakites contended that he had sufficient evidence to prove some of the deductions, but blamed others on the software he used. After examining his returns, the IRS questioned the number of unsupported tax deductions that he had claimed in 20. Though he worked for a firm whose clients are mostly accountants, Bulakites relied only on TurboTax when he prepared his own returns.

The taxpayer, Barry Bulakites, is an insurance consultant in California. A recent Tax Court decision, illustrates, once again, the folly in filing inaccurate income tax returns and taking deductions that are unsubstantiated!