If property is GIFTED, the receiver of the gift never pays a tax. The giver of the gift has to deal with gift taxes. If property with a basis (original cost plus improvements) is $200k and the property sells for $500k, there is a $300k profit and is taxable. If instead the property is INHERITED, […]
IS LIFE INSURANCE TAXABLE?
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. […]
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 […]
2023 Home Energy Credit
Credit available up to $150 for home energy audit on principal residence. Auditor must provide signed written report with significant cost-effective improvements. Must also include estimate of energy & cost savings. For the first year 2023 the auditor need not be qualified. But for the following year 2024….. Put IRS Notice 2023-59 into Google. It […]
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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