Despite indications of increased inflation, the interest rates on overpayments and underpayments are unchanged from the second quarter of 2021 (Rev Rul. 2021-17). The rates for the fourth quarter of 2...

In order to claim losses from real estate activities, other than a $25,000 loss allowance for active participants with adjusted gross income below a set amount, a taxpayer must be a “real estate pro...

A qualifying child many entitle a taxpayer to a variety of breaks, including head of household status, the earned income credit, the child tax credit, and Economic Impact Payments (EIPs). Before 2018,...

Individuals with investment income may be subject to an additional Medicare tax called the net investment income (NII) tax. One couple living in France wanted to use their foreign tax credit carryover...

Vehicles acquired for business can result in tax write-offs. For vehicles that are purchased, there’s depreciation as long as you opt to deduct your actual costs and don’t use the IRS standard mil...

As wages pick up and the Federal Reserve tapers down (it buys fewer Treasuries), the rate of inflation has climbed to levels not seen in many years. The consumer price index was up 5.4% for the 12 mon...

According to the Social Security Administration, as of June 2021, there were a total of nearly 70 million people receiving Social Security benefits. These include individuals receiving retirement bene...

The American Rescue Plan Act, which was signed into law on March 11, 2021, dramatically changed the child tax credit for 2021. The law made the credit fully refundable and extended it to dependents 17...

If you are an owner of an IRA or you inherited an IRA, you must take required minimum distributions (RMDs) according to tax rules. The failure to do so may result in a 50% penalty. Because of COVID-19...

With interest rates still very low, many homeowners have taken this opportunity to refinance their mortgages and obtain a lower interest rate. From a tax perspective, there are consequences to refinan...

There are different tax reporting rules for professional gamblers versus those who gamble for fun. A professional gambler is someone who spends substantial time on a regular basis in gambling activiti...

Due to the stepped-up basis rule, the basis for inherited property usually is its value on the date of sale (special rules apply for property from estates using the alternate valuation date and for th...

Inheritances are tax free, regardless of amount. However, if the account starts to earn interest, your spouse must pay tax on the interest from the date of the inheritance....

It depends on the amount of the profits. Gain on the sale of a home is excludable from gross income up to $250,000 ($500,000 on a joint return). This full exclusion usually applies only if the home wa...

A gift of a present interest (e.g., cash) to each recipient up to the annual exclusion amount ($15,000 in 2021) is not subject to gift taxes and does not require the filing of a gift tax return (Form ...