If a relative needs financial help, offering an intra-family loan might seem like a good idea. But if not properly executed, such loans can carry substantial negative tax consequences – such as unexpected taxable income, gift tax or both. Here are five tips to consider: Create a paper trail. In general, to avoid undesirable tax [...]
When it comes to tax planning, you’ve got to be ready for anything. For example, do you know whether you’re likely to be subject to the alternative minimum tax (AMT) when you file your 2016 return? If not, you need to find out now so that you can consider taking steps before year end to [...]
Year end may seem far away. But now’s a good time to start looking ahead to what itemized deductions you may be able to claim for the 2016 tax year. Following is a list of selected deduction and exclusion items to consider. Don’t use the list as a tax planning worksheet. Rather, think of it [...]
One of the great things about setting up a home office is that you can make it as comfy as possible. Assuming you’ve done that, another good idea is getting comfortable with the home office deduction. To qualify for the deduction, you generally must maintain a specific area in your home that you use regularly [...]
Love and marriage – according to the song, they go together like a horse and carriage. But matrimony can leave some couples singing a sad tune when they encounter the ominously name “marriage penalty.” However, for other couples, marriage brings tax-saving opportunities. IN A NUTSHELL When tax brackets for married couples aren’t twice as big [...]
Many families hire people to work in their homes, such as nannies, housekeepers, cooks, gardeners and health care workers. If you employ a domestic worker, make sure you know the tax rules. IMPORTANT DISTINCTION Not everyone who works at your home is considered a household employee for tax purposes. To understand your obligations, determine [...]