The rules about investing in a home of greater or equal value within a certain period of time after the sale are long gone (1997). The current rules… if you lived in the home 2 our of the last 5 years from the date of sale, your GAIN can be up to $500,000 (married filing […]
Veterinary Cost Deductible?
YES for a service dog who helps the visually impaired and other people with physical disability. This includes the cost to purchase the service dog, training, dog food, grooming, etc. This is a MEDICAL EXPENSE. for 2014, this is done on Schedule A subject to the total medical being greater than 10% of Adjusted Gross Income (or 7.5% of AGI if […]
Life Estate Taxes to Seller
Tax Implications to the Seller The sale of a life estate in the home is considered a partial sale of an interest in real estate subject to income tax on any gain realized. The sale would qualify for the homestead exemption under Section 121 of the Internal Revenue Code that allows for an exclusion of gain […]
2014 Tax Law-not totally known
Technically, the sales tax deduction lapsed after 2013. Congress for the last several years has waited until December to decide what the law is… and much of it is retroactive. So, right now there is no sales tax deduction for vehicles and other major purchases…. but probably it will be un-lapsed (that a word?)… or renewed for […]
2015 Social Security Withholding
Social Security Taxable Maximum Rising to $118,500The maximum amount of earnings subject to Social Security tax will rise to $118,500 in 2015, from the current $117,000, the Social Security Administration announced October 22, 2014 […]
2014 Social Security Wage Base
2014 Social Security wage base will increase by $3,300 to $117,000. The rate of 6.2% for social security remains the same and applies to both the employee and the employer. The rate of 1.45% for medicare remains the same and applies to both the employee and the employer and applies to the total wages (no limit). A […]
Is 2014 PMI tax deductible?
PMI is Private Mortgage Insurance. It is a premium paid by the homeowner to lower the risk of the mortgage holder since equity % is below their requirement (generally 20% required). So, is PMI tax deductibe in 2014? MAYBE. So many of the laws for the last couple of years have been unknown until December, and […]
Partnership Basis when contributed property is sold
Example……. Partner 1 contributed cash Partner 2 contributed stuff Both count toward their basis in the partnership. The stuff is valued at the Fair Market Value. That being said… Partner 2 has BASIS in the stuff contributed to the partnership BUT that basis may be less than the Fair Market Value. Nothing taxable yet. Example: You and […]
Read More… from Partnership Basis when contributed property is sold
HSA – Random IMPORTANT info
Reimbursements may include Health Insurance while collecting unemployment. Disbursements not used for qualified medical expenses are taxable AND PENALIZED 20% Cannot be enrolled in Medicare Cannot be claimed as a dependent on someone else’s tax return. Your plan cannot allow for prescription drug coverage before deductible is met. […]
2014 SIMPLE IRA SET UP
Who: All employers interested in retirement plans (this is what we do) What: Simple IRA’s When: Can sign up until September 30, 2014 for new plans and fund later. Why: Cause you are going to want to retire someday. It is never too early nor too late to start. How Much Can an Employee Contribute: Up to $12,000 per employee […]