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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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 […]
EFFECTIVE IMMEDIATELY! The Division of Corporations no longer has authority to waive the $400 late fee for annual reports filed after May 1st. The provision for waiver in s. 607.193(2)(b),F.S. was repealed during the 2010 Legislative Session. All business entities except non-profit corporations must pay the late fee if the annual report is filed after May […]
Recourse vs. Nonrecourse When a debt is canceled by any means (deed in lieu of, foreclosure, short sale,cancellation of debt), the tax impact depends on the type of debt. Debt for which the borrower is personally liable is “recourse debt,” all other debt is “nonrecourse debt.” RECOURSE debt holds the borrower personally liable for any unsatisfied amount owed […]
Question: Are the amounts a taxpayer receives from a “reverse mortgage” taxable? Deductible? Answer: NO to both. Interest on a reverse mortgage loan added monthly to the outstanding loan balance as it accrues is neither taxable in a cash method lender’s gross income nor deductible by a cash method borrower at the time it is added. […]
That depends on the AMOUNT of income AND the TYPE of income. Filing is not required if all of your income is from W2 Wages, Interest, Dividends and Other Miscellaneous Inocme (excluding Social Security) AND if the total income is less than the Standard Deduction plus personal exemptions. 2009 example:A Single person’s standard deduction is $5,700. Add a personal exemption of […]
No. They are considered cosmetic. But what if they are implanted in conjunction with a deductible procedure? Tax Court Case O’Donnabhain (2010), 134 TC No. 4 The Tax Court has held that an individual could deduct as a medical care expense under Code Sec. 213 amounts paid for hormone therapy and sex reassignment surgery that were incurred […]
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Until you know you are going to stick with it (no offense, many clients try stuff and change their mind), I would not consider the extra paperwork involved with having the NEW LLC taxed as a corporation. You can find more information on our website for Sub S Corporations www.USATaxHelp.com and also the why you […]
Per IR-2010-010 the Pension Protection Act of 2006 REQUIRES a non-profit organiztions that does not file the necessary information form for three consecutive years to AUTOMATICALLY lose their Federal tax-empt status. This has been in effect since January 1, 2007. ENUF SAID! Contact us for more info at USATaxHelp.com […]
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CONSUMER ALERT! Please be aware that COMPLIANCE SERVICES (not to be confused with the Florida corporation, Compliance Services, Inc.) is mailing notices to new business entities wanting “Annual Minutes” and a fee of $125. be paid for filing. These notices are NOT from the Dept. of State, Division of Corporations. “Annual Minutes” are NOT required […]
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