Planning to rent out your vacation getaway? When it comes to taking advantage of the tax benefits, timing is an important factor. Here are two points to remember: 1. The 14-day-or-10-percent test. The IRS applies this test to determine if you use your vacation home as a personal residence. If you stay in the home […]
Read MoreTax breaks can help when disaster strikes
Recent events here and abroad are reminders that disasters can occur at any time – often with staggering human and financial costs. If you’re an unlucky victim of a disaster, you may receive help from insurance and federal disaster aid. But the tax code also offers some relief. You may be able to take an […]
Read MoreConsider the time value of money in making business decisions
Suppose you’re selling your business, and it’s worth $400,000. You’re offered $210,000 down and lump sums of $100,000 at the end of year 1 and year 2. Should you take the offer? Most people know that $1,000 now is worth more than $1,000 a year from now. Here’s why: 1. Inflation: In a year, a […]
Read MoreEstate taxes might not affect you, but you still need a plan
There’s good news if you’re concerned about estate taxes. For the next two years (2011 and 2012), the value of your estate that’s excluded from tax is set at $5 million. And the top rate on taxable estates is 35%. The $5 million exemption is per person, thus a couple’s exemption is $10 million. Also […]
Read MoreNew law repeals expanded 1099 reporting rules
On April 14, 2011, President Obama signed legislation (Comprehensive 1099 Taxpayer Protection and Replacement of Exchange Subsidy Overpayments Act of 2011) repealing the previously expanded reporting rules for businesses and landlords that had been created by laws passed in 2010. Business reporting. The Form 1099 reporting rules were changed by the 2010 health care legislation. […]
Read MoreApril 18, 2011: Major Tax Deadline
Monday, April 18, is a red letter day in the world of taxes. It is the deadline for filing certain returns and taking certain tax-related actions. Here are the major deadlines. Filing 2010 income tax returns for individuals. If you cannot file your return by this deadline, be sure to file an extension request by […]
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