For years, owners of rental properties that show a tax loss have had to contend with the tax law\’s \”passive loss\” limitations. With limited exceptions, real estate rental losses may be used only to reduce passive income – the rental losses are not currently deductible against non-passive income, such as salary. Now, owners of real […]
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More people are using health savings accounts (HSAs) to help pay unreimbursed medical expenses and to set money aside for future health care expenses. HSAs are available only to individuals who have a qualifying high-deductible health plan (HDHP). Employers may offer an HSA option along with an HDHP, or an eligible individual with an HDHP
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Many people believe that gifting a personal residence to their children will help reduce their estate taxes. However, because the federal estate-tax exclusion amount is currently set so high ($5,340,000 in 2014), very few people can expect to have federally taxable estates. As a result, unless state estate taxes are a concern, the smart tax move
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Income Strategies in Retirement, When you retire, you will probably have several sources of income. These may include traditional individual retirement accounts (IRAs) , Roth lRAs, pensions, 401(k) or 403(b) accounts, mutual fund and brokerage accounts, and Social Security. You\’ll want to have a strategy for managing your income and withdrawing from your accounts that
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Is your activity a business or a hobby? Hobbies and Taxes, it\’s important to know because if the IRS views your activity as a hobby rather than as a business, your tax deductions for business-type expenses are subject to certain limitations. Business Versus Hobby To qualify as a business, an activity must be conducted for
Tax Issues for Divorcing Individuals, when a couple divorces or separates, there are many issues that need to be sorted out. One issue many forget to discuss is taxes. Here is a look at some of the tax issues divorcing couples may encounter. File Jointly or Separately? For tax purposes, a person\’s marital status is
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Taking 529 Plan Withdrawals, to make the most of your Section 529 college savings plan, consider the following. Qualified expenses. Withdrawals from a 529 college savings plan are tax free, provided the withdrawals are not more than the account beneficiary\’s qualified higher education expenses for the year. Qualified expenses include tuition, fees, books, supplies, and
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New Rules Under the Affordable Care Act, the U.S. Treasury Department recently issued final regulations regarding the \”shared responsibility\” requirements placed on certain employers by the Affordable Care Act (ACA). These final regulations ease some rules and delay the phase-in of others. Covered Employers As of January 1, 2015, employers are required to provide qualifying
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Repairs Versus Improvements, if you own a business or an income-producing property, you know there is an important tax difference between a \”repair\” and an \”improvement.\” The cost of a repair can be deducted in its entirety in the year it is incurred, but the cost of an improvement must be capitalized and is generally
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Taking a Casualty Loss, the news is filled with stories of people losing their property and even their entire homes to hurricanes, tornadoes, fires, and winter storms. If you have suffered a property loss, you may be able to claim a \”casualty loss\” tax deduction. A \”casualty\” is the destruction of property from some sudden,
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