Mutual funds: Handle with care at year end

Mutual funds: Handle with care at year end As we approach the end of 2018, it’s a good idea to review the mutual fund holdings in your taxable accounts and take steps to avoid potential tax traps. Here are some tips. Avoid surprise capital gains Unlike with stocks, you can’t avoid capital gains on mutual … Continued

Buy business assets before year end to reduce your 2018 tax liability

Buy business assets before year end to reduce your 2018 tax liability The Tax Cuts and Jobs Act (TCJA) has enhanced two depreciation-related breaks that are popular year-end tax planning tools for businesses. To take advantage of these breaks, you must purchase qualifying assets and place them in service by the end of the tax … Continued

Donate appreciated stock for twice the tax benefits

Donate appreciated stock for twice the tax benefits A tried-and-true year end tax strategy is to make charitable donations. As long as you itemize and your gift qualifies, you can claim a charitable deduction. But did you know that you can enjoy an additional tax benefit if you donate long-term appreciated stock instead of cash? … Continued

Reporting Income from Vacation Home Rentals under Today’s Tax Rules

Do you own a vacation home that’s rented out but also used for a significant amount of time by you personally? Such properties are subject to tax rules that are different from those that apply to properties rented out with minimal personal use. Here’s how to optimize your tax results in light of several key changes … Continued

Employers: IRS Updates Business Travel Per Diems

Under current tax law, employees aren’t allowed to claim miscellaneous itemized deductions — including unreimbursed business expenses — on their personal tax returns for 2018 through 2025. So, it may be more important than ever for employers to set up expense reimbursement plans for business-related travel costs.The recordkeeping for reimbursing actual expenses for lodging, meals … Continued

How Much Will Social Security Recipients Collect Monthly in 2019?

How Much Will Social Security Recipients Collect Monthly in 2019?   Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 67 million Americans will increase just 2.8% in 2019, the federal government recently announced. When you want scholarships, visit scholarships for international students in usa. The 2.8% cost-of-living adjustment (COLA) will begin … Continued

Could “bunching” medical expenses into 2018 save you tax?

Could “bunching” medical expenses into 2018 save you tax? Some of your medical expenses may be tax deductible, but only if you itemize deductions and have enough expenses to exceed the applicable floor for deductibility. With proper planning, you may be able to time controllable medical expenses to your tax advantage. People are making cash … Continued

Consider all the tax consequences before making gifts to loved ones

Consider all the tax consequences before making gifts to loved ones Many people choose to pass assets to the next generation during life, whether to reduce the size of their taxable estate, to help out family members or simply to see their loved ones enjoy the gifts. If you’re considering lifetime gifts, be aware that … Continued

RICs Can Defer Distributing Transition Tax Amount

In a Revenue Procedure, the IRS has allowed regulated investment companies (RICs) to postpone to 2018 the inclusion of the Code Section 965 transition tax in gross income for purposes of computing their required distributions. RICs can be any of several financial entities, from mutual fund trade funds to real estate investment rusts or unit … Continued

All Combat-Zone Contract Workers Now May Qualify for Income Exclusion

U.S. citizens or resident aliens, and specifically contractors or their employees supporting the U.S. Armed Forces in combat zones, may qualify for the foreign earned income exclusion.  Qualified individuals may exclude from gross income, subject to certain limitations, wages or self-employment income earned for services performed outside the United States. To be entitled, however, a … Continued