You might have received some tax credits for purchased a certain kind of hybrid vehicle, depending on the year, etc. Let’s ignore that benefit. Now you are driving pretty much gas free. Gas free or practically gas free also means many states are noticing a significant drop in tax revenues from the pump. Thus, electric cars […]
1041’s and Capital Gains
If a trust has capital gains, the trust pays the tax except in the final year when the trust is closed. In any other year, if beneficiaries receive a distribution, they are taxed on any ordinary income over and above deductible expenses. If there is not a distribution, the trust pays the tax on the ordinary income. Not […]
Personal Residence Sale – History of Law
A taxpayer’s principal residence is a capital asset. Upon the sale of a principal residence, the taxpayer realizes capital gain or loss. However, no loss is recognized, because a residence is personal in nature. In the case of a sale that produces gain, the Code, as amended by the Taxpayer Relief Act of 1997, provides an […]
Can Unused Rental Losses be Deducted in a Bankruptcy?
Can you deduct unused rental losses in a bankruptcy? LAW: Under IRC § 469(g), current and carryforward passive activity losses are fully deductible in the year of an entire disposition in a fully taxable transaction to an unrelated party. A qualifying disposition may create a Net Operating Loss (NOL) which can be carried back. See IRC § 172 Once […]
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Who Paid the Most Tax ?
The latest year data available form the IRS indicates the top 10% of US taxpayers in 2011 paid 68.3% of all federal income tax paid in 2011. […]
RMD for 70 1/2 in 2014
If you are turning 70 1/2 in 2014 a REQUIRED MINIMUM DISTRIBUTION (RMD) is necessary from your retirement accounts. You can either withdraw the 2014 distribution by 12.31.14, OR you can defer for three months to 04.01.15. The option to defer is permitted only for 2014, the first year of RMD. Thereafter, you will need to take the RMD […]
RMD Penalty
Failure to withdraw the REQUIRED MINIMUM DISTRIBUTION (RMD) from retirement accounts will result in a 50% penalty of the required amount that was not distributed! Call us if you need further clarification. […]
IRS PAYMENT OPTIONS-ELECTRONIC
Click here for IRS Electronic Payment Options (goes directly to IRS website) […]
Full Retirement Age FRE re:Social Security benefits
Year of Birth* Full Retirement Age 1937 or earlier 65 1938 65 and 2 months 1939 65 and 4 months 1940 65 and 6 months 1941 65 and 8 months 1942 65 and 10 months 1943–1954 66 1955 66 and 2 months 1956 66 and 4 months 1957 66 and 6 months 1958 66 and 8 months 1959 66 […]
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2013 Sub S Corp potential new form
2013 Sub Chapter S corporations owned by an estate, trust or disregarded entity (i.e. sole member LLC) must attach Schedule B-1. The new Form B-1 lists the name and tax ID of the shareholder. This helps IRS monitor tax cheats and check for Sub S potential terminations due to ineligible ownership. […]