by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Many employer‑provided benefits are taxable unless a specific exclusion applies. A fringe benefit is generally included in income unless the employee pays fair market value or the law provides an exclusion. For tax purposes, even not performing services (such as under...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
A taxpayer may be able to exclude income from the cancellation of qualified principal residence indebtedness. This exclusion applies to debt discharged after 2006 and before 2026. If the exclusion is used, the taxpayer must reduce the basis of the principal residence...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
A taxpayer who meets Section 121 requirements may exclude gain from the sale of a main home. If the exclusion does not apply, the sale is reported on Form 8949 and flows to Schedule D. A main home is the place the taxpayer lives most of the time. It may be a house,...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Interest on municipal bonds is generally excluded from federal income tax when the bond is issued by: A state The District of Columbia A U.S. possession A political subdivision of any of the above The bond must finance a public purpose. Even when interest is excluded,...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Certain types of income are not taxable. These exclusions reduce gross income without requiring deductions. Many exclusions apply only when specific statutory conditions are met. Major Income Exclusions Municipal bond interest Interest from state and local government...
