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May 6, 2019 9:51 pm

The deduction from gross income for tuition and fees expired at the end of 2017. As of the end of April 2019, it had not yet been extended for 2018 (or to 2019). Congress has indicated that it may sti...

May 6, 2019 9:49 pm

Yes. There is no exclusion from income for the payment from an employer to an employee who opts not to take company health coverage....

May 6, 2019 9:46 pm

For depreciation purposes, the basis is the lower of your actual basis (generally cost, plus capital improvements), or the property’s fair market value on the date of its conversion to rental proper...

March 14, 2019 10:29 pm

Gifts are not deductible for income tax purposes, but may be exempt from gift taxes. For 2019 you can give up to $15,000 per recipient (same as for 2018) without being subject to gift tax. There is no...

March 14, 2019 10:27 pm

If you itemize deductions (instead of claiming the standard deduction) and opt to deduct state and local sales taxes instead of state and local income taxes, you can treat taxes paid on a big ticket i...

March 14, 2019 10:27 pm

The IRS treats bitcoin and other cryptocurrency transactions as property and not as currency. As such, you must figure gain on the transaction in the same way as with any other type of property. The I...

February 20, 2019 9:37 pm

Retired public safety officers can elect to exclude from gross income up to $3,000 of distributions from qualified retirement plans that are used for qualified insurance premiums (this is NOT a tax cr...

February 20, 2019 9:28 pm

For 2018 through 2025, the miscellaneous itemized deduction for investment-related costs is not deductible. Before 2018, these amounts were subject to the 2%-of-adjusted-gross-income floor. After 2026...

February 20, 2019 9:26 pm

Because you repaid an amount you thought you had an unrestricted right to and which may have been included in income (up to 85%) in an earlier year, special rules apply. The repayment will be netted a...

January 16, 2019 8:54 pm

Severance pay is taxable in the year in which it is received. If it’s received in a lump sum, then it’s taxable in one year. If it’s spread over two or more years, then the portion received in e...

The deduction from gross income for tuition and fees expired at the end of 2017. As of the end of April 2019, it had not yet been extended for 2018 (or to 2019). Congress has indicated that it may sti...

Yes. There is no exclusion from income for the payment from an employer to an employee who opts not to take company health coverage....

For depreciation purposes, the basis is the lower of your actual basis (generally cost, plus capital improvements), or the property’s fair market value on the date of its conversion to rental proper...

Gifts are not deductible for income tax purposes, but may be exempt from gift taxes. For 2019 you can give up to $15,000 per recipient (same as for 2018) without being subject to gift tax. There is no...

If you itemize deductions (instead of claiming the standard deduction) and opt to deduct state and local sales taxes instead of state and local income taxes, you can treat taxes paid on a big ticket i...

The IRS treats bitcoin and other cryptocurrency transactions as property and not as currency. As such, you must figure gain on the transaction in the same way as with any other type of property. The I...

Retired public safety officers can elect to exclude from gross income up to $3,000 of distributions from qualified retirement plans that are used for qualified insurance premiums (this is NOT a tax cr...

For 2018 through 2025, the miscellaneous itemized deduction for investment-related costs is not deductible. Before 2018, these amounts were subject to the 2%-of-adjusted-gross-income floor. After 2026...

Because you repaid an amount you thought you had an unrestricted right to and which may have been included in income (up to 85%) in an earlier year, special rules apply. The repayment will be netted a...

Severance pay is taxable in the year in which it is received. If it’s received in a lump sum, then it’s taxable in one year. If it’s spread over two or more years, then the portion received in e...

No. CDD fees are imposed by a developer to finance the cost of amenities within a community. HOA fees are imposed by the association. These fees are not treated as taxes even though they relate to you...

Because you are not at least 65 years old by the end of the year, you apply the 10% threshold to all of your itemized medical costs (which include costs related to your mother). If she claimed them on...

While interest on municipal bonds is tax free for federal income tax purposes, gain or loss on the sale of the bonds must be reported. The loss is treated as a capital loss, which is deductible within...

For income tax purposes, you cannot take a deduction for this payment and your son is not taxable on it (it’s a gift to him). For gift tax purposes, the first $14,000 is excluded ($28,000 if your sp...

Because you receive a stepped-up basis for the home (equal to its value on the date of your mother’s death), you may have no gain from the sale if it occurs soon. If you sell it for less than this b...

It depends. If you qualify for the home sale exclusion, then gain up to $250,000 ($500,000 on a joint return) is tax free; there is no capital gain. If your gain excludes your applicable exclusion amo...

No. Inheritances of any amount from decedents in any location are fully tax free. However, if an inheritance is considered to be “income in respect of a decedent,” which is income earned by the de...

No. The deadline for 2012 contributions was April 15, 2013, regardless of filing extensions. However, you can make a 2013 contribution now; you don’t have to wait until the end of the year or even u...

Whether the tax refund is taxable to you depends on whether you itemized deductions in the year you paid the property tax or relied on the standard deduction. If you took the standard deduction, the r...

No. Inheritances of any amount from decedents in any location are fully tax free. However, if an inheritance is considered to be “income in respect of a decedent,” which is income earned by the de...

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