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Alimony can be used as Compensation for IRA purposes.. yup!
Taxable alimony and separate maintenance payments received by an individual are treated as compensation for IRA purposes. For a summary of what compensation does and does not include, see Publication 590 – Table 1-1 on page 4. […]Read More… from Alimony can be used as Compensation for IRA purposes.. yup!
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Compensation for IRA purposes is what exactly?
To contribute to a traditional IRA, you must be under age 70 1/2 at the end of the tax year. You, and/or your spouse if you file a joint return, must have taxable compensation, such as wages, salaries, commissions, tips, bonuses, or net income from self–employment. Taxable alimony and separate maintenance payments received by an individual…
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S Corp Shareholder Sells – Short Year Accounting
Taxpayer decided to sell his stock in the company, as opposed to an asset sale. This means the buyer has the responsibility to prepare the corporate tax return. Taxpayer has agreed to do an accounting of the year up to the date of sale and present this information to the buyer. In the contract, please…
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Pools & Hot Tubs Deduction
There is a great deal of mis-conception about the deductibility of Hot Tubs & Pools. First, you must have a doctor’s prescription. Second, how much did it really cost you? The theory is the Pool or Hot Tub has added value to the home. Let’s say the item cost $15,000. It has not added $15,000…
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HIRE ACT
SUMMARY The Hiring Incentives to Restore Employment Act. Businesses can receive two tax incentives for each new worker. To qualify the employee must have been unemployed during the 60 days before beginning their new job or worked fewer than 40 hours during that 60 day period. It applies to anyone hired between February 3rd and December 31st of…