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Tax Efficient IRA Withdrawals

Many people save for retirement by putting pretax dollars into an employer-sponsored retirement plan, such as a 401(k). Those dollars may be rolled into an IRA, perhaps at retirement or after a change in jobs. An IRA rollover can maintain the tax deferral. Ultimately, those pretax dollars will be withdrawn and reported as taxable income. If you are retired then, in a lower tax bracket because you no longer... Read More

Deducting Charitable Gifts

Charitable donations usually can be deducted on Schedule A of Form 1040, along with other itemized deductions. You should have the required support materials, in case your charitable deduction is questioned. This article will cover the rules on cash contributions: donations by cash, check, electronic funds transfer, debit or credit card, or payroll deduction. Separate rules apply to noncash donations;... Read More

FASB Has Issued the New Lease Accounting Standard

The Financial Accounting Standards Board (FASB) has finally issued the new lease accounting standard. The new standard is effective for non-public companies for the 2020 financial statements, allowing plenty of time to adapt. The final version is closer to the current accounting than the previous drafts. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a... Read More

Portability in Estate Planning

The federal estate tax exemption for deaths in 2016 is $5.45 million. Married couples may be able to pass twice that amount—$10.9 million—to their heirs without triggering estate tax. Some planning is necessary to reach the higher level, but a relatively new tax code provision, known as portability, can simplify the process. Traditional tactics For decades, estate tax planning for married couples with... Read More

The IRS May Put You on Hold

During the tax preparation season, business owners, individual taxpayers, and CPAs may have questions for the IRS. If you need to call the agency, be prepared for a long wait. Increased tax code complexity plus budget cuts have resulted in frustrating experiences for many callers. Advocate’s assessment In her latest report to Congress, National Taxpayer Advocate Nina E. Olson noted that the number of... Read More

Deducting Interest Paid

Among the itemized deductions on Schedule A of Form 1040, you’ll find “Interest You Paid.” As you get your records together for tax preparation, you should realize that not all interest can be deducted on your return. Interest you paid last year on credit card debt generally isn’t deductible, for example. Interest deductions on Schedule A fall into two categories. You probably can deduct interest on... Read More

IRS Warning – Phone Scams Continues to Pose Serious Threat to Taxpayers

Aggressive and threatening phone calls by criminals impersonating IRS employees remain a significant problem for the 2016 filing season, the IRS noted in a news release. There has been a surge of phone scams in which criminals threatened taxpayers with arrest, deportation, license revocation and other actions with scammers attempting to trick them into making a payment. The IRS reminded taxpayers to guard... Read More

Deducting Interest Paid

Among the itemized deductions on Schedule A of Form 1040, you’ll find “Interest You Paid.” As you get your records together for tax preparation, you should realize that not all interest can be deducted on your return. Interest you paid last year on credit card debt generally isn’t deductible, for example. Interest deductions on Schedule A fall into two categories. You probably can deduct interest on... Read More

The IRS May Put You On Hold

During the tax preparation season, business owners, individual taxpayers, and CPAs may have questions for the IRS. If you need to call the agency, be prepared for a long wait. Increased tax code complexity plus budget cuts have resulted in frustrating experiences for many callers. Advocate’s assessment In her latest report to Congress, National Taxpayer Advocate Nina E. Olson noted that the number of... Read More