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 […]
Read More… from IRS can REVOKE PASSPORT if Debt is greater than $50k
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. […]
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 […]
Read More… from 2016, 2015 & 2014 IRA’s Simples SEP 410(k) 403(b) Profit-Share
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 […]
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 […]
Special hardship exemptions have to be applied for…. and when taxpayer receives an ECN (exemption certificate number) we can input that and the penalty goes away. Has to be applied for…. Here is the link. https://www.healthcare.gov/health-coverage-exemptions/hardship-exemptions/ If you have not done so, you should explore this…. some possible exemptions……. Required care of a loved one […]
Something BIG has changed effective Jan 1, 2015. Old law… you could rollover each IRA once in a 12 month period. New law… Limited to one rollover per 12-month period, regardless of the number of IRA accounts. (US Tax Court in Bobrow v Commissioner). […]
2014 Estimated Tax – Sould I Pay It? Depends on what type taxpayer you are. Are you Wanting to pay in the absolute minimum such that next April you may owe a bunch but with no penalty? Or, are you wanting to pay in during the year such come next April 15th you are about even? […]
LONG TERM CAPITAL GAINS (LTCG) First, take all of your income including Capital Gains…. Now, assume that figure is all ordinary income… after your itemized deductions and personal exemptions…. This is your theoretical taxable income. What tax bracket is that? Theoretical Ordinary Tax Rate Long Term Capital Gain Rate 10% or 15% 0% 25%, 28%, […]
NET INVESTMENT TAX There is a 3.8% additional tax for investment income (ordinary dividends, interest, annuities from non-qualified plans, royalties, net rental income & capital gains) when the modified adjusted gross income is over $250,000 for married filing joint ($200,000 if single or head of household, $125,000 if married filing separate). That is the bottom […]
