The SECURE ACT’s “10-Year Rule” for Inherited IRAs
On Friday, December 20, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law. The broad intent of the legislation is to make it easier for families to save more for retirement, but it also includes...
Tax Free “Muni’s” or Taxable “Corporates”? How to Choose
Municipal bonds are very appealing to investors because of one important attribute: municipal bond interest is exempt from federal income tax. But while tax-free income sounds great, there is a catch! The interest an investor can earn on...
Can I Deduct Interest On Personal Loans That I Use For Business?
Interest on personal loans and credit cards is generally not a deductible expense. But one important exception to this general rule is when you use a personal credit card or take out a personal loan to pay for business-related expenses. In this...
How Do Capital Loss Carryforwards Work?
When an investor sells a stock or mutual fund that produces a loss, this capital loss reduces taxable income by first offsetting any capital gains, and then by reducing taxable income up to $3,000. Net capital losses in excess of $3,000 generate...
What Happens if I Live and Work in Different States? Federal Taxes
In today’s highly mobile society, it’s not unusual for people to live and work in different states, and that mobility can have tax implications. In this two-part series, we will look at what that can mean for your taxes, starting with your federal...
How State Income Tax Can Follow You Even After You Move
Welcome to Florida! You can now enjoy the benefits of living in a state with no state income tax. But don’t put your checkbook away just yet. In certain situations, your former state can tax income that you receive even after you...
What Receipts Do You Need to Keep for Your Tax Return?
In the event of an IRS audit, you need to provide documentation for your deductible expenses. Some people keep the receipts, while others keep credit card statements. So what exactly do you need to keep? Keep the receipt and the credit card...
Does The IRS Allow Digitized Receipts in the Event of an Audit?
Keeping track of receipts for tax-deductible expenses can be a hassle. File cabinets stacked with invoices and wallets filled with paper receipts take up time and space and can become downright annoying. One solution to this problem is to...
Is Your Side Business a Hobby or is it a Business?
For generations, people have had part-time businesses, and in today’s so-called gig economy, it’s even more common. But is your part-time business really a business, or is it a hobby? The IRS draws a firm line between the two and has separate...
What Can You Deduct on a Home Office?
As the gig economy grows and remote work become a bigger part of the US economy, more people are working from a home office. Deducting expenses for a home office can save you on taxes, but there are guidelines on what qualifies....