Assuming you are a W2 employee (not an independent contractor)….. There no longer is any deduction for unreimbursed employee expenses… GONE! That means, unfortunately, you have legitimate expenses you cannot deduct. In an ‘UNACCOUNTABLE’ plan (your allowance), it is suppose to be added to your W2 and taxed for both FICA and Federal Withholding. It is an […]
Read More… from 2018 Unreimbursed Mileage – Unreimbursed expenses for W2 Employee
SUMMARY OF IRS LINK https://www.irs.gov/uac/like-kind-exchanges-under-irc-code-section-1031 You cannot sell ANYTHING and defer taxes… You can EXCHANGE (qualified intermediary is hired.. you don’t get your hands on the money)… subsequent property is identified within 45 days… and have a total of six months from sale date to purchase like kind property. When the exchange is done, if you […]
Tennessee may soon have NO income tax. Now it taxes only interest from notes and bonds and dividends. Recently the new law lowers the tax rate to 5% (from 6%) for 2016 and drops further until the tax is gone at the end of 2021. There are SEVEN states with no income tax: Alaska Florida Nevada […]
Read More… from SEVEN states have no income tax… one more soon
Optional standard mileage rates for business use of a vehicle will go down in 2016, the IRS announced on Thursday (Notice 2016-1). For business use of a car, van, pickup truck, or panel truck, the rate for 2016 will be 54 cents per mile, compared with 57.5 cents in 2015. Taxpayers can use the optional standard mileage rates to […]
YES for a service dog who helps the visually impaired and other people with physical disability. This includes the cost to purchase the service dog, training, dog food, grooming, etc. This is a MEDICAL EXPENSE. for 2014, this is done on Schedule A subject to the total medical being greater than 10% of Adjusted Gross Income (or 7.5% of AGI if […]
Technically, the sales tax deduction lapsed after 2013. Congress for the last several years has waited until December to decide what the law is… and much of it is retroactive. So, right now there is no sales tax deduction for vehicles and other major purchases…. but probably it will be un-lapsed (that a word?)… or renewed for […]
PMI is Private Mortgage Insurance. It is a premium paid by the homeowner to lower the risk of the mortgage holder since equity % is below their requirement (generally 20% required). So, is PMI tax deductibe in 2014? MAYBE. So many of the laws for the last couple of years have been unknown until December, and […]
If a trust has capital gains, the trust pays the tax except in the final year when the trust is closed. In any other year, if beneficiaries receive a distribution, they are taxed on any ordinary income over and above deductible expenses. If there is not a distribution, the trust pays the tax on the ordinary income. Not […]
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. […]
