Article Highlights: Limitation to Losses within Disaster AreasCost versus Market ValueHome Tax LossesHome Tax GainsReplacement PropertiesHome Gain Exclusion The late-2017 tax-reform package changed the rules for personal casualty losses, which now are only deductible if they occur in a federally declared disaster area. As a result, if a home is destroyed in a forest fire [...]
Article Highlights: Reason for ConversionBasisDepreciationCash Flow versus Tax Profit or Loss Passive LossesHome Gain Exclusion There are many reasons to convert a home into a rental, such as to ensure that a prior home produces income and appreciation after the owner buys a new home; to maximize the tax benefits for an elderly person who [...]
Article Highlights: MarriageBuying a HomeHaving or Adopting ChildrenGetting DivorcedDeath of Spouse Throughout your life there will be certain significant occasions that will impact not only your day-to-day living but also your taxes. Here are a few of those events: Getting Married – If you just got married or are considering getting married, you need to [...]
Article Highlights: October 15 is the extended due date for filing federal individual tax returns for 2018.Late-filing penalty Interest on tax due. Other October 15 deadlines. If you could not complete your 2018 tax return by the normal April filing due date and are now on extension, that extension expires on October 15, 2019. Failure to [...]
Article Highlights: Purchase CostsPointsMortgage PaymentsProperty TaxesInflationGain ExclusionRenting Versus Owning Housing is a big expense for everyone. The choice generally involves either renting or purchasing – and financing that purchase with a home loan. While purchasing, people may contact real estate agents Charlotte or near their neighborhood to gain an insight on the average price in [...]
Article Highlights: Matching SeasonIRS LettersFake LettersDemand for Immediate Payment Every year, the vast majority of taxpayers file their returns with the IRS between the end of January and the April due date. However, the IRS does not just take taxpayers’ word regarding the information on their returns. For this reason, tax season is followed by [...]
Article Highlights: Tax-Free Income from Working AbroadForeign Earned Income and Housing ExclusionsForeign Self-Employment IncomeClaiming or Revoking the Exclusion U.S. citizens and resident aliens are taxed on their worldwide income, whether they live inside or outside of the U.S. However, qualifying U.S. citizens and resident aliens who live and work abroad may be able to exclude [...]
Article Highlights: Tax ReformUnderpayment PenaltiesW-4 Modifications for 2020Withholding EstimatorPenalty Abatement Was your 2018 federal tax refund less than normal, or – worse yet – did you actually owe tax despite usually getting a refund? If so, this was primarily due to the last-minute passage of the Tax Cuts and Jobs Act at the end of [...]
Article Highlights: IRS FocusAbout CryptocurrencyTax Treatment IRS Compliance ProgramLetters Being Sent If you own cryptocurrency, you need to know that the IRS has owners of cryptocurrency in its sights because many cryptocurrency owners are not reporting or paying taxes on their cryptocurrency transactions. In fact, the IRS is so focused on this issue that it [...]
Article Highlights: Tax Loss for a Security Sold or That Is WorthlessProving Worthlessness Selling a Worthless Stock by Year-endBrokers May Accommodate Clients Capital Loss Deduction If you are like most investors, you occasionally will pick a loser that declines in value. Sometimes, a security can even become worthless when the issuing company goes out of [...]
