HEIR HAZARDS when INHERITING an IRA RMD (Required Minimum Distribtutions) are required when the owner turns 70 1/2 years old. NON-SPOUSE beneficiaries can ‘stretch’ the regular inherited IRA over their own life expentancy but must start the RMD the year following the death of the owner. While ROTH IRA owners never are required to distribute RMD, NON-SPOUSE beneficiaries must. Those withdrawls are […]
2014 Estate & Gift Tax Exemption
2014 Estate & Gift Tax Exemption is based on $5,340,000. 2013 amount was $5,250,000. […]
Identity Theft special PIN
IRS is testing the applicaiton for a special PIN (Personal Identification Number) for eligible taxpayers in Florida, Georgia, and D.C. These three locations have the highest per capital percentage of tax-related identity theft issues. […]
2013 OOPS.. Mortgage not deductible
If you don’t record the mortgage, the interest is not deductible. In the case of DeFrancis, TC Summ. Op. 2013-88, while the mother-in-law had a mortgage secured by the home, the mortgage was not recorded. Since a potential buyer would not know of this mortgage, the Tax Court ruled an unrecorded mortgage is not deductible. […]
2014 Social Security Earning Limits
If you turn 66 in 2014 you will not lose any social security benefits if you earn (W2, self employed, working partner) $41,400 or less before reaching age 66. Individuals 62 to 66 by the end of 2014 can earn up t $15,480 before a redution in beneficts. There is NO EARNINGS CAP once you are 66. […]
2013 HSA Contribution Limits
2013 HSA (Heath Savings Account) Contribution Limits Self only plan Family plan Under age 55 $3,250 $6,450 Age 55 or over $4,250 $7,450 Age 65 or over (1) n/a n/a (1 (1) This does not mean you cannot contribute during the year. The calculation is done on a monthly basis. You can contribute until you […]
China in 2012
China is the world’s second largest economy…. 2012 sales in China accounted for 11.2% of revenue reported by U.S. companies listed on Standard & Poor’s 500 (research by The Economist… quoted in the Journal of Accountancy..a publication of the American Institute of CPAs). […]
2013 Gift Basket – special tax court case
There is a recent tax court case that applies to gift baskets. For a number of years there has been something called the Production Activities Deduction (PAD). It generally applies to MANUFACTURING. This tax court case may open a deduction for flower shops and other companies that assemble gift baskets. If your bottom line income […]
Social Security in 2013 – How Much can I earn without reducing SSoc Pmt
if you were born January 2, 1943, through January 1, 1955, then your full retirement age for retirement insurance benefits is 66. If you work and are full retirement age or older, you may keep all of your benefits, no matter how much you earn. If you are younger than full retirement age, there is […]
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2013 Form 1099 Late Filing Penalty
This has never been easy to explain…. here is the latest…. The penalties were increased two years ago to the following amounts: $30 per form, or per statement, if it was corrected within 30 days (maximum $250,000 per year), $60 per form, or per statement, if corrected more than 30 days after the filing due […]