Tax

Individual federal income tax rates don’t appear to be increasing next year except for taxpayers with adjusted gross incomes over $10 million. Also, the estate tax stepped-up basis rules for inherited property are not expected to change. Make the most of your charitable giving by donating appreciated property. Stocks, mutual funds, or real estate, that…

Traditional and Roth IRAs Max contribution $6k or $7k for those 50 or over. Best for individuals with modest ability to save for retirement. SIMPLE IRA Max contribution $13,500 or $16,500 for those 50 or older. Best for Midsize businesses with up to 100 employees SEP IRA Max contribution $58k Best for business owners with…

Then You Better Study and Pass all Your Tests Generally, passive (rental) losses are ONLY deductible against income that you do not materially participate in, i.e., passive activity income. Losses that exceed your passive activity income are carried forward to the next year (indefinitely or until the related property is sold). However, Real Estate Professionals…

I have selected 15 provisions that will affect many of my clients. Basically, I find the bill to be extremely flawed. However, there are a few provisions I support, but very few. Let me hear from you on what you think. One year extension of expanded child tax credit; permanent extension of refundability. I am…

Magic Show or Circus Act? Primer: The estate tax is imposed on bequests at death as well as inter-vivos (during life) gifts. A certain amount of each estate is exempted from taxation by the federal government. The exemption applies to total bequests and gifts (not including the annual gift exemption of $15,000 per year per…

You know that investing in real estate is one of the best ways to increase your net worth. For most Americans, real estate equity is the largest source of their wealth. But with the market at all time highs, should you buy real estate now? Many experts believe that the real estate market will not…

Taxpayers who are not actively involved in their real estate rentals cannot deduct their losses against other income. However, taxpayers who are actively involved in their rental endeavors may be able to deduct some or all their losses. These taxpayers are limited to deducting $25,000 or less of their rental losses against other income. Taxpayers…

In high cost locales, employees can get $292 tax free each day. The daily stipend is $198 for other areas. For meals and incidentals only, the rates are $71 a day in high-cost areas and $60 elsewhere. The per diem rate for incidental expenses is $5 per day. Self-employed individuals can use the meals and…

Alimony Deduction, Auto for Business, or Annuity Investments Bonus Depreciation, Bunching Deductions Charity Contributions, Capital Gains/Losses, Childcare Credit Deductions and Dependents Education Credits Filing Status or Flexible Spending Account Gifts, Gambling Losses Health Savings Accounts or Home Offices Installment Sales and IRA Contributions Like Kind Exchanges Meals for Business, Medical Expenses, Military Moving Points, Property…