Article Highlights: Trading in a VehicleSelling a VehicleGifting a VehicleDonating a Vehicle to Charity If you are buying a new car, are you wondering what to do with the old one? You actually have a number of options, some of which have tax implications and some of which don't. These options include trading the car [...]
Article Summary: Foreign Account Reporting RequirementFinancial Crimes Enforcement NetworkPenalties for Failure to FileType of Accounts AffectedForm 8938 Filing Requirements U.S. citizens and residents with a financial interest in or signature or other authority over any foreign financial account need to report that relationship by filing FinCEN Form 114 if the aggregate value of the accounts [...]
Article Highlights: IRS Enforcement CampaignVirtual CurrencyValuationTransactionsCharacter of the Gain or LossForeign Currency TransactionsForeign Bank and Financial Account (FBAR) ReportingPayment for Goods and ServicesAcquiring Virtual CurrencyVirtual Currency MiningEmployee PaymentsIndependent Contractor Payments1031 Exchanges The IRS announced in late July 2019 that it is ramping up its campaign to ensure that taxpayers with cryptocurrency transactions report these transactions [...]
Article Highlights: Income as a FactorFiling Status as a Factor85% Maximum TaxableBase AmountsDeferring IncomeMaximizing IRA Distributions Whether your Social Security benefits are taxable (and, if so, the amount that is taxed) depends on a number of issues. The following facts will help you understand the taxability of your Social Security benefits. For this discussion, the [...]
Article Highlights: Collecting TipsTip SplittingService ChargesRecord KeepingEmployer Reporting Allocated Tips Anyone who collects tips must include those tips in their taxable income. This requirement is not limited to waiters and waitresses; it applies to anyone who collects tips, including taxicab, Uber, Lyft, and similar drivers; beauticians; porters; concierges; and delivery people. Tips are amounts freely [...]
August 12 - Report Tips to Employer If you are an employee who works for tips and received more than $20 in tips during July, you are required to report them to your employer on IRS Form 4070 no later than August 12. Your employer is required to withhold FICA taxes and income tax withholding [...]
According to one recent study, the vast majority of Americans who are between the ages of 55 and 64 say that they have only saved, on average, about 12% of what they'll need to live out their retirement years in comfort. Things have gotten so severe that experts believe that about 64% of working aged [...]
First, don’t panic. Audits are relatively rare, as fewer than 1% of taxpayers grouped by income level will get that dreaded notice on IRS letterhead. Per the linked statistics, for the average American who earned $50‒70K per year, only about half a percent of those tax returns got audited. If you made between $25‒50K or between $75‒100K, [...]
In the largest possible sense, handling the cash flow for your new business is exactly what it sounds like ‒ you're trying to get the clearest level of visibility into "money coming in versus money going out" as possible. But managing cash flow is also about a lot more than that, too. It's about making [...]
Article Highlights: Home Equity LoanHome Equity Interest DeductionAlternative Minimum TaxAbove-the-Line Interest DeductionQualified Expenses If you are considering borrowing funds to finance your college education or that of your spouse or children, it is important that you understand that the student loan interest deduction is not limited to the interest paid on government student loans. In [...]
