Entries by admin

Tax Cuts & Jobs Act – TCJA

There are 3 overall changes for the upcoming tax filing season: A redesigned, shorter, simplified (but not really) 1040. The new 1040 now looks like a “Post Card.” IRS cut lines from the old 1040 and moved them to 6 brand new schedules, in the process making the 1040 appear less confusing. I bet some […]

Health Savings Accounts

Dear Client: The IRS has issued a notice providing both employers and employees with a set of formal questions and answers on Health Savings Accounts (HSAs). Contributions to HSAs are deductible by employees in determining adjusted gross income, which effectively allows taxpayers with high-deductible health insurance to make contributions on a pre-tax basis to cover […]

Education Tax Credits

Education Tax Credits (Hope and Lifetime Learning Credits) For tax years 2009 and 2010, there is a new education credit called the American opportunity tax credit (AOC). This is a modification of the Hope Credit. The maximum amount of the AOC is $2,500 per student. The credit is phased out (gradually reduced) if your modified […]

Holding Period for Capital Assets

Re: Holding Period for Capital Assets – A LETTER IN RESPONSE    Dear Client:   This letter is intended to give you a better understanding of the importance of holding period to your investment strategy, as well as how to measure holding period for federal income tax purposes.   Holding period makes the greatest difference […]

Like-Kind Exchanges

LIKE-KIND EXCHANGES – A LETTER IN RESPONSE Dear Client: This letter is in reply to your questions regarding the federal income tax consequences of a “like-kind” exchange. The principal advantage of a like-kind exchange is that taxable gain is not triggered at the time of an exchange but, instead, that gain is deferred and added […]

10 Tax Tips for Home Sellers

10 Tax Tips for Home Sellers In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale. If you have a gain from the sale of your main […]

Glossary of Tax Terms

Glossary of Tax Terms Accelerated death benefits are benefits that can be paid from a life insurance policy to an insured who is terminally or chronically ill. If tax law requirements are met, the payment is treated the same as payments on account of the death of the insured (with a dollar limit applied in […]