Are You Eligible For a 2018 Tax Refund?

Are You Eligible For a 2018 Tax Refund?

,
You may be one of the many taxpayers eligible for a refund from their 2018 tax return. Last December, tacked on to an Appropriations Act, Congress passed the long-awaited extenders bill. This bill had been lingering in Congress for about 2 years…
Disaster-Related Tax Losses May Be Less Than Expected

Disaster-Related Tax Losses May Be Less Than Expected

,
The late-2017 tax-reform package changed the rules for personal casualty losses, which now are only deductible if they occur in a federally declared disaster area. As a result, if a home is destroyed in a forest fire or other disaster within…
The IRS Is Cracking Down on Cryptocurrency Tax Transactions

The IRS Is Cracking Down on Cryptocurrency Tax Transactions

,
The IRS announced in late July 2019 that it is ramping up its campaign to ensure that taxpayers with cryptocurrency transactions report these transactions on their income tax returns – and report them correctly – by sending “educational”…
States’ SALT Deduction Workarounds Shot Down

States’ SALT Deduction Workarounds Shot Down

, , ,
The Treasury Department and the IRS have essentially shot down efforts by several states to help their residents circumvent the $10,000 cap on the itemized deduction for state and local taxes (SALT). When the Tax Cuts and Jobs Act (TCJA),…
How Does Combining a Vacation with a Foreign Business Trip Affect the Tax Deduction for Travel Expenses of a Self-Employed Individual?

How Does Combining a Vacation with a Foreign Business Trip Affect the Tax Deduction for Travel Expenses of a Self-Employed Individual?

, , , , , , , ,
Note: effective for years 2018 through 2025, the Tax Cuts and Jobs Act of 2017 suspended the deduction of miscellaneous itemized expenses that must be reduced by 2% of the taxpayer’s adjusted gross income. Employee business expenses, including…
June Estimated Tax Payments Are Just Around the Corner

June Estimated Tax Payments Are Just Around the Corner

, , , ,
June 15th falls on the weekend this year, so the due date for the second installment of estimated taxes is the next business day, June 17, which is just around the corner. So, it is time to determine if your estimated tax payment should be lowered…
Why Tax Basis Is So Important

Why Tax Basis Is So Important

, , ,
For tax purposes, the term “basis” refers to the original monetary value that is used to measure a gain or loss. For instance, if you purchase shares of a stock for $1,000, your basis in that stock is $1,000; if you then sell those shares…
Tax Treatment of a Room Rental

Tax Treatment of a Room Rental

, ,
With the shortage of affordable housing these days, many homeowners are renting out rooms in their homes, providing themselves with some additional cash. Questions that are often raised in regard to room rentals include: Is the income taxable?…
Some Electric Vehicle Credits Are Phasing Out!

Some Electric Vehicle Credits Are Phasing Out!

The IRS recently announced that the tax credit for purchasing the popular Tesla is being phased out and that the credit will drop to $3,750 after December 31, 2018, and will drop again to $1,875 after June 30, 2019. Then, the credit will no…
Filing a 1099-MISC May Now Apply to Landlords. Are You Collecting the Needed W-9s?

Filing a 1099-MISC May Now Apply to Landlords. Are You Collecting the Needed W-9s?

,
If you use independent contractors to perform services for your business or your rental that is a trade or business, for each individual whom you pay $600 or more for the year, you are required to issue the service provider and the IRS a Form…