Congress Will Have to Take Action to Stop Tax Increases

August 26th, 2010

Normally, one would think that Congress would have to take some action to increase taxes. However, it is quite the opposite for 2011. If Congress fails to take action, in spite of the fact that President Obama vowed no new taxes for individuals earning less than $200,000 and families earning less than $250,000, there will […]

Flipping Homes – A Reviving Trend in Real Estate

August 13th, 2010

Prior to the recent economic downturn, flipping real estate was popular. With mortgage interest rates low and home prices at historical lows, flipping appears to be on the rise again. House flipping is, essentially, purchasing a house or property, improving it, and then selling it (presumably for a profit) in a short period of time. The key is to find a suitable fixer-upper that is priced under market for its location, fix it up, and resell it for more than it cost to buy, hold, fix up and resell it.

If you are contemplating trying your hand at flipping, keep in mind that you will have a silent partner, Uncle Sam, who will be waiting to take his share of any profits in taxes. (And most likely Sam’s cousin in your state capitol will also expect a share, too.) Taxes play a significant role in the overall transaction, and tax treatment can be quite different depending upon whether you are a dealer, an investor or a homeowner. The following is the tax treatment for each.

New Regulations Provide More Insight to Health Care Reform

August 13th, 2010

The Departments of Labor, Treasury and Health and Human Services recently issued regulations to implement a new Patient’s Bill of Rights as part of the Health Care Reform Act.  The major initial provisions include the following: INSURANCE FOR UNINSURED AMERICANS WITH PRE-EXISTING CONDITIONS Beginning July 1, 2010, a Pre-Existing Condition Insurance Plan will provide new […]

Haven’t Filed an Income Tax Return? Watch Out!

June 3rd, 2010

If you have been procrastinating about filing your 2009 tax return or have other prior year returns that have not been filed, you should consider the consequences. Taxpayers should file all tax returns that are due, regardless of whether or not full payment can be made with the return.  Depending on an individual’s circumstances, a […]

Tax Credits for Small Employers Offering Health Coverage

May 1st, 2010

The Patient Protection and Affordable Care Act provides a tax credit for an eligible small employer (ESE) for nonelective contributions to purchase health insurance for its employees. The term “nonelective contribution” means an employer contribution other than an employer contribution pursuant to a salary reduction arrangement. o 2010 through 2013 – For tax years 2010 […]

Employer Tax-Free Medical Benefits Available to Children Under Age 27

April 23rd, 2010

As a result of changes made by the recently enacted Affordable Care Act, health coverage provided for an employee’s children under 27 years of age is now generally tax-free to the employee, effective March 30, 2010.  Generally, under pre-Act law, to be a qualifying child of a taxpayer for this purpose the child must have […]

Are Capital Gains Being Raised in 2011?

April 3rd, 2010

Congress lowered the capital gains rates for 2003 through 2010 and they have not shown any inclination to extend the lower rates past 2010.  Therefore, unless Congress acts, the rates automatically return to the pre-2003 levels of 10% (up from the current 0%) for those in the 15% or less bracket and 20% (up from […]

Top Ten Facts about Taking Early Distributions from Retirement Plans

February 18th, 2010

Some taxpayers may have needed to take an early distribution from their retirement plan last year. The IRS wants individuals who took an early distribution to know that there can be a tax impact to tapping your retirement fund.  Here are ten facts about early distributions. Payments you receive from your Individual Retirement Arrangement before […]

Tax Breaks for Charity Volunteers

February 9th, 2010

If you volunteer your time for a charity, you may qualify for some tax breaks.  Although no tax deduction is allowed for the value of services performed for a charity, there are deductions permitted for out-of-pocket costs incurred while performing the services.  The normal deduction limits and substantiation rules also apply.  The following are some […]

A Little Help for Your Friends

January 31st, 2010

In these troubling financial times, many individuals are struggling to do their own taxes.  Some need guidance with their tax and financial issues, while others would like to take advantage of the vast number of new tax benefits available in 2010 and subsequent years. They probably do not know where to turn for professional help.  […]

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