Passive Activity Loss Rules – What you Need to Know Before Investing in a Passive Activity
Passive income: Something that every investor strives for because what better income is there than income earned by doing nothing at all. Publication 925 defines passive activities as trades or businesses in which you do not materially participate in, such as businesses that you do not manage or operate yourself, investments, and real […]
How Gambling Income and Losses are Treated for Tax Purposes
When most people hear the world gambling, they automatically think of Las Vegas and casinos. However, when the IRS thinks of gambling, they refer to all different forms of gambling such as horse races, casinos, sports betting, raffles, and lottery winnings. Additionally, gambling winnings can come in different forms as well. For example, cars, trips, […]
Tax Breaks for Higher Education
Are you saving for college, currently paying tuition, or paying on a student loan? Or do you have children that may go to college in the future? If so, there is probably a tax break for you. Higher education can be very expensive, but there are ways to possibly get some of your money back […]
Vacation Home Rental Rules
Do you have a vacation home you only use for part of the year? Would you like to utilize this home for extra income, but are not sure how to do it correctly? We can help you! If qualified, you may prorate any expenses incurred between personal and rental use. The tax benefits receive are […]
Can Depositors Protect Their Funds When it Comes to Bank Failures?
Headlines about recent bank failures may have depositors feeling uneasy about their money and questioning how much control they really have over their deposits once they drive off from the bank. Below, are five steps that depositors can take to better protect themselves and their funds in todays financial climate. Verify that the bank is […]
Rules to Consider When Rolling Over a Retirement Account
Saving for retirement is an essential part of financial planning that can provide tremendous benefits, especially if done correctly. There are a multitude of different accounts and plans, each with their own benefits, costs, and rules which must be taken into consideration. At some point, you may find yourself transferring funds from one retirement account […]
Claiming Your Dependents
Trying to get the biggest tax break is not easy in todays times, especially when you earn a higher income. The good news is that claiming your dependents is a great way to help you get that tax break that you deserve. Lets start by defining what a dependent is. A dependent is someone who […]
Gift Tax Exclusion – How it Works
According to the IRS, when someone gives another person money and does not receive full consideration in return, they are making a gift. Full consideration is the fair amount of compensation that would otherwise be paid if the parties were not related. Gifts are considered income to the recipient and are subject to taxation. A […]
IRS Installment Agreement Options
If it turns out you owe the IRS but cannot pay your taxes all at once when due, you may request an IRS Installment Agreement (or payment plan) to pay your debt over time. What Are My Options? Depending on how much you owe and your financial situation, there are several common types of IRS […]
Are your Attorney Fees Tax Deductible?
Anyone who hires a lawyer is more likely than not going to incur attorney fees. The reason why the lawyer is hired however, be it for a child custody case or to write a patent, will affect the treatment of these expenses. This is because not all attorney fees are treated equally, as some of […]