IP PIN protects against tax return ID theft

By Bennett Allison, CPA Identity theft is a growing problem.  After obtaining personal information, identity thieves often file fraudulent personal income tax returns with the hope of collecting ill-gotten income tax refunds in the process.  Applying for an IP PIN is an easy way to prevent such tax return fraud. IP PIN stands for Identity …
Read More

Navigating the taxes of donating art to charity

If you own a valuable piece of art, or other property, you may wonder how much of a tax deduction you could get by donating it to charity. The answer to that question can be complex because several different tax rules may come into play with such contributions. A charitable contribution of a work of …
Read More

Planning for year-end gifts with the gift tax annual exclusion

As we approach the holidays and the end of the year, many people may want to make gifts of cash or stock to their loved ones. By properly using the annual exclusion, gifts to family members and loved ones can reduce the size of your taxable estate, within generous limits, without triggering any estate or …
Read More

Getting divorced? Own a business? Proceed with caution.

If you’re a business owner and you’re getting a divorce, tax issues can complicate matters. Your business ownership interest is one of your biggest personal assets and in many cases, your marital property will include all or part of it. Tax-free property transfers You can generally divide most assets, including cash and business ownership interests, …
Read More

Not all property tax deductions are limited

There are exceptions to the $10,000 cap Property owners have been turning to online tax forums the past few years with a head-scratching question that usually goes something like this: “Why is my tax preparation software limiting my itemized deductions for property taxes to $10,000 on my federal return?” In fact, the 2017 Tax Cuts …
Read More

Are investment-related expenses deductible? It depends…

Do you have significant investment-related expenses, including the cost of subscriptions to financial services, home office expenses and clerical costs? Under current tax law, these expenses aren’t deductible through 2025 if they’re considered investment expenses for the production of income. But they’re deductible if they’re considered trade or business expenses. For years before 2018, production-of-income …
Read More

Heads up! IRS audits may be on the rise

The IRS just released its audit statistics for the 2020 fiscal year and fewer taxpayers had their returns examined as compared with prior years. But even though a small percentage of returns are being chosen for audit these days, that will be little consolation if yours is one of them. Latest statistics Overall, just 0.5 …
Read More

7 valuable deductions for self-employed individuals

If your business was forced to close due to the pandemic, you may be itching to get back in the game. Or maybe you’re looking to fulfill a lifelong dream of running a business for the first time. In any event, there’s been a recent uptick in the number of people starting small businesses. Uncle …
Read More

Retiring soon? 4 tax issues you might face

If you’re getting ready to retire, you’ll soon experience changes in your lifestyle and income sources that could have numerous tax implications. Here’s a brief rundown of four tax and financial issues you may deal with when you retire: Taking required minimum distributions. This is the minimum amount you must withdraw from your retirement accounts. …
Read More