SOMETIMES the life insurance company is required to pay interest from date of death to the date they issue the check. i.e. You receive $100,010. The life insurance $100k is not taxable. The extra $10 is interest and is taxable. […]
Category: Income Tax
A word of caution on property transfers…..
Let’s say you gave someone $600k of property at today’s market value. It has been owned along time and only $30k is the original purchase price. We can add improvements to the original $30k say a pool, additional room,…. Add those improvements of $40k to the $30k and we have what we call BASIS of $70k. That […]
2024 GIFT TAXES – THE BASICS
In 2024 any individual can give any other individual up to $18,000 of stuff in the calendar year 2024 without any tax implications (no money to pay, no reporting on any tax form). Then the next year could do the same thing. I’d suggest if a check is written that in the memo section the giver […]
MEDICARE WENT UP …. OUCH!
There are reasons for Medicare to Increase…. Your income is higher. That’s good and we hope your income stays higher. But what if it increase because of an unusual event… can we explain that and get it lowered? Well, yes, kind of and maybe. Check this list. Even if your reason is not on this […]
Wash-Sale Rule and Crypto
Selling securities at a loss, then purchasing substantially identical securities within 30 days prohibits the capital loss write-off. This includes transactions between spouses and closely held corp. Crypto losses are CURRENTLY not considered securities. Therefor the wash-sale rule does not apply. […]
2024 Social Security COLA Increase
Cost of Living Adjustment (COLA) will increase 3.2% for more than 71 million Americans. For more information go to www.ssa.gov It is a good idea to go to www.ssa.gov and make sure the earnings records are correct. When I did it, found 2 missing years. Being that I keep all tax returns I was easily able to provide […]
529 Account to Pay College Debt
Up to $10k distributions from 529 accounts can be used to pay college debt… This is a LIFETIME limit, not an annual limit. 529 distributions exceeding $10k are taxable and subject to !0% penalty. […]
GEORGIA Unborn Heart Beat Detected is Dependent!
In 2022, the Georgia Department of Revenue made changes to the definition of a dependent for the purpose of tax preparation. Georgia House Bill 481 added an unborn child with a detectable heartbeat to the definition of dependent, effective 7/20/22. On Georgia individual income tax returns filed for tax year 2022 where, at any time […]
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2022 Vehicle Mileage Rates
For 2022, the standard mileage rates for cars, vans, pickups or panel trucks) is 58.5 cents per mile driven for business use, up 2.5 cents from the rate for 2021, 18 cents per mile driven for medical, or moving purposes for qualified active-duty members of the Armed Forces, up 2 cents from the rate for […]
2022 Gift Tax
Starting in 2022 the gift tax exclusion is $16,000 per donor in a calendar year. […]