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IRS can REVOKE PASSPORT if Debt is greater than $50k
A new law in effect November 5, 2015 in H.R. 22 creates IRC (Internal Revenue Code) Section 7345. It allows the IRS to REVOKE, DENEY or LIMIT PASSPORTS if the debt owed is greater than $50,000. This includes penalty and interest. If you have an installment agreement, or in Tax Court this does not apply. More detailed…
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2015 & 2016 Simple IRA Contributions
Maximum Simple IRA contributed by an employee is $12,500 in 2015 and 2016. Catch-up contributions. If permitted by the SIMPLE IRA plan, participants who are age 50 or over at the end of the calendar year can also make catch-up contributions. The catch-up contribution limit for SIMPLE IRA plans is $3,000 in 2015 and 2016. […]Read More… from…
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2016, 2015 & 2014 IRA’s Simples SEP 410(k) 403(b) Profit-Share
2016 2015 2014 IRAs IRA Contribution Limit $5,500 $5,500 $5,500 IRA Catch-Up Contributions 1,000 1,000 1,000 IRA AGI Deduction Phase-out Starting at Joint Return 98,000 98,000 96,000 Single or Head of Household 61,000 61,000 60,000 SEP SEP Minimum Compensation 600 600 550 SEP Maximum Contribution 53,000 53,000 52,000 SEP Maximum Compensation 265,000 265,000 260,000…
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Rental property placed in Service
We are buying a new build vacation rental home. We’ve paid the deposit and the home will be ready in early March. I assume the mortgage interest is deductible (and not the full mortgage payment) in which case I would expect the yield to be circa $1k pm after all deductions. YOU ARE CORRECT, only the…
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Distributions from Sub S – Income?
This example shows why distributions are not income. DISTRIBUTIONS ARE NOT INCOME YOU ARE TAXED ON THE PROFITS OF THE COMPANY WHETHER YOU TAKE A DISTRIBUION OR NOT. Example 1: Let’s say you alone start a new company and you put in $10k. The first year the company makes a profit of $100k. That makes…