Understanding the passive activity loss rules
Are you wondering if the passive activity loss rules affect business ventures you’re engaged in — or might engage in? If the ventures are passive activities, the passive activity loss rules prevent you from deducting expenses that are generated by them in excess of their income. You cannot deduct the excess expenses (losses) against earned […]
IRS Tax Tip: Gather records early for a smoother tax season
As taxpayers are getting ready to file their taxes, one of the first things they’ll do is gather their records. To avoid refund delays, taxpayers should gather all year-end income documents before filing a 2019 tax return. It’s important for folks to have all the needed documents on hand before starting to prepare their return. […]
Does my working teen still qualify as a dependent on my taxes?
My teens got their first jobs this year. When do they no longer qualify as dependents? Is there an income maximum they shouldn’t exceed or else it has unpleasant tax repercussions for the parent? Whether you are the parent or the teen, landing that first job is a milestone for most families. While the younger […]
Divorce may be even more taxing under TCJA
Divorce is never easy, emotionally or financially, and now with the Tax Cuts and Jobs Act, the process can be even more taxing. Prior to the passage of the sweeping tax reform law at the end of 2017, a divorced spouse paying alimony could deduct those payments from his or her reportable income when filing […]
How will tax reform impact your 2018 taxes? A review of the TCJA provisions
Now that 2019 has begun, there isn’t too much you can do to reduce your 2018 income tax liability. But it’s smart to begin preparing for filing your 2018 return. Because the Tax Cuts and Jobs Act (TCJA), which was signed into law at the end of 2017, likely will have a major impact on […]
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. The Tax Cuts and Jobs Act (TCJA) could make bunching such expenses into […]
Tax law makes planning for investments more complicated
For investors, fall is a good time to review year-to-date gains and losses. Not only can it help you assess your financial health, but it also can help you determine whether to buy or sell investments before year end to save taxes. This year, you also need to keep in mind the impact of the […]