The IRS expects that more than 70% of taxpayers will receive a refund in 2017.¹ What you do with a tax refund is up to you, but here are some ideas that may make your refund twice as valuable. Double your savings Perhaps you’d like to use your tax refund to start an education fund …
Do I need to file a gift tax return?
If you transfer money or property to anyone in any year without receiving something of at least equal value in return, you may need to file a federal gift tax return (Form 709) by the April tax filing deadline. If you live in one of the few states that also impose a gift tax, you …
Will I owe income taxes when I sell my home?
In general, when you sell your home, any amount you receive over your cost basis (what you paid for the home, plus capital improvements, plus the costs of selling the home) is subject to capital gains taxes. However, if you owned and used the home as your principal residence for a total of two out …
Due Date Approaches for 2016 Federal Income Tax Returns
Tax filing season is here again. If you haven’t done so already, you’ll want to start pulling things together — that includes getting your hands on a copy of last year’s tax return and gathering W-2s, 1099s, and deduction records. You’ll need these records whether you’re preparing your own return or paying someone else to …
Key Retirement and Tax Numbers for 2017
Every year, the Internal Revenue Service announces cost-of-living adjustments that affect contribution limits for retirement plans, thresholds for deductions and credits, and standard deduction and personal exemption amounts. Here are a few of the key adjustments for 2017. Retirement plans Employees who participate in 401(k), 403(b), and most 457 plans can defer up to $18,000 …
Substantiating Your Charitable Gifts
When you claim a federal income tax deduction for charitable contributions, you must substantiate the contributions by maintaining certain records. The records must establish the charity to whom the gift was made, the amount of cash or the type and value of other property donated to charity, whether anything was received in consideration for the …
Tougher Rules For Claiming the Child Tax Credit
A number of changes went into effect this year as a result of the Protecting Americans from Tax Hikes (PATH) Act of 2015 and other recent legislation. One of the changes added tougher compliance rules for those claiming the Child Tax Credit.
When Your Home is Not a Principal Residence
“Houston, we have a problem.” Who could ever forget those famous words as one catastrophe after another unfolded for the astronauts in the movie, Apollo 13? After considering a recent client related situation, it hit me – America, we have a problem! OK, I know that’s the number one topic these days – the problems …
Donating a Building to the Local Fire Department – A Few Things You need to know
Suppose you have an old house on your property, but you would really like to tear it down and build a new one. The demolition will cost $10,000 and you just really do not want to spend the money. A good friend offers you advice, or maybe the idea just pops into your head. I will …
Individual Federal Tax Return Deadline (It’s NOT 4/15/2016)
For 2016, the individual tax filing deadline is not Friday April 15 as you might think. It is actually Monday, April 18. Why? As it turns out, April 15 is a legal holiday in Washington, DC – Emancipation Day. Therefore Federal individual returns and Form 4868 automatic extension requests are not due until Monday, April 18. …