When replacing a business vehicle, it does make a difference for tax purposes whether you decide to sell it or trade it for the replacement vehicle. If you sell a vehicle that was used for business, the resulting gain or loss is reported on your tax return. As a result, it is generally better to [...]
Sec. 529 plans allow very large sums of money to be put away for a child's college education with the earnings accumulating as tax-deferred and tax-free, if used for qualified college education expenses. Coverdell Education Savings Accounts allow $2,000 a year to be set aside for a child's education. Earnings are tax-deferred and tax-free if [...]
When it comes to college students going back to the campus life there are a few things that students and parents need to be aware of. This article should be beneficial for everyone who is going to college, whether you're a recent high school graduate going to college for the first time, are looking into [...]
When a taxpayer settles a debt for less than its full amount, the forgiven amount of the debt is taxable, unless the taxpayer qualifies for one of two currently available exclusions. With the downturn in the economy and the accompanying drop in home prices that occurred in recent years, many taxpayers are unable to keep [...]
Employer dependent care benefits allow you to exclude up to $5,000 in childcare expenses from your wages. Employer health care plans allow you to exclude the cost of insurance for you and your family from your wages. Employer 401(k) plans allow you to set aside $17,500 ($23,000 if you are 50 years or over) per [...]
If you use independent contractors to perform services for your business and you pay them $600 or more for the year, you are required to issue them a Form 1099-MISC after the end of the year to avoid facing the loss of the deduction for their labor and expenses. The 1099s for 2013 must be [...]
If you use independent contractors to perform services for your business and you pay them $600 or more for the year, you are required to issue them a Form 1099-MISC after the end of the year to avoid facing the loss of the deduction for their labor and expenses. The 1099s for 2012 must be [...]
Frequently, taxpayers think that gifts of cash, securities, or other assets they give to other individuals are tax-deductible and, in turn, the gift recipient sometimes thinks income tax must be paid on the gift received. Nothing is further from the truth. To fully understand the ramifications of gifting, one needs to realize that gift tax [...]
Congress created the "Kiddie Tax" to prevent parents from placing investments in their child's name to take advantage of the child's lower tax rate. Kiddie Tax rules apply most often to children through the age of 17, although children aged 18 through 23 who are full-time students may also be affected. Under the Kiddie Tax, [...]
The alternative minimum tax, originally created to curb tax shelters and tax preferences of the wealthy, can now apply to the average taxpayer. Six commonly encountered deductions routinely cause the average taxpayer to be hit by the AMT. Incentive stock options can also have a profound impact on the AMT. There are two ways to [...]
