When buying a vacation home, the primary objective is usually to provide a place for many years of happy memories. But you might also view the property as an income-producing investment and choose to rent it out when you’re not using it. Let’s take a look at how the IRS generally treats income and expenses [...]
Married couples don’t always agree – and taxes are no exception. In certain cases, an “innocent” spouse can apply for relief from the responsibility of paying tax, interest and penalties arising from a spouse’s (or former spouse’s) improperly handled tax return. Although it isn’t easy to qualify, potentially affected taxpayers should review the rules. Applicants [...]
Once a relatively obscure concept, income in respect of a decedent (IRD) can create a surprisingly high tax bill for those who inherit certain types of property, such as IRAs or other retirement plans. Fortunately, there are ways to minimize or even eliminate the IRD tax bite. How It Works Most inherited property is [...]
If your business has acquired, constructed or substantially improved a building recently, reconsider a cost segregation study. One of these studies can enable you to identify building costs that are properly allocable to tangible personal property rather than real property. And this may allow you to accelerate depreciated deductions, reducing taxes and boosting cash flow. [...]
When it comes to financial planning, most of us spend our time guarding against things that could go wrong. But what if something really good happens? Hitting the jackpot is obviously a nice problem to have. Yet an unexpected influx of cash can drive even savvy individuals to do regrettable things. Your first impulse upon [...]
As you file your 2016 income tax return, you may be wondering whether you’re eligible for tax breaks related to a niece you lives with you, or perhaps a stepson who spends only party of the year in your home. It all depends on whether, for federal tax purposes, that person is your “qualifying child.” [...]