The standard deduction will be doubled starting in 2018 and many taxpayers itemized deductions may be less than the standard deduction. To maximize itemized deductions in 2017, taxpayers should pay these in 2017.
(A) State and local taxes.
The House bill puts a $10,000 cap on these, but the Senate Finance Committee completely repeals the deduction. In light of this, the following actions should be taken for: Read More
The House has passed their version of the Tax Reform bill and the Senate Finance Committee has approved a bill which will now be debated, amended, and voted on by the full Senate. The bill passed by the Senate will be different from the one passed by the House. The differences will be ironed out by the joint House-Senate Compromise Committee and then voted on by the full House and Senate, which cannot be amended.
This process may not be completed until the end of the year which will not leave much time for taxpayers to do effective planning to minimize their 2017 taxes. Due to the uncertainty of the final law’s provisions, this article makes suggestions how taxpayers can minimize their 2017 taxes. Part I explains ways to minimize income and Part II explains ways to increase deductions. Read More
Every week, until the end of the year, we will be celebrating one of our top writers on TaxConnections.
This week we are honoring Harold Goedde.
This article explains the nature of the Lifetime Learning Credit (LTC), eligibility, qualifying expenses, the amount and limitations, and how to report them on form 1040 and supporting schedules. (Click here to read the first article.)
The IRS, the states, and the tax industry, are committed to protecting you from identity theft. They have strengthened their partnership to fight the criminals and to devote themselves to serving you. Working together, they have made many changes and are making good progress to combat identity theft. The IRS has substantially reduced fraudulent returns and identity theft in the past two years.
This article is part 3 of a three-part series which discusses gains, including deferring the gain for income producing property by purchasing replacement property-qualifying property, time period for replacement, realized and recognized gain, and the basis of new property. The other 2 articles can be found by clicking on these links: Casualty Part 1 and Casualty Part 2.
This article is part 2 of a three-part series which discusses how to determine the amount of the loss for personal use and income producing property, amount deductible, and tax year for the deduction (part 1 can be found here). We will discuss gains, including deferring the gain for income producing property by purchasing replacement property-qualifying property, time period for replacement, realized and recognized gain, and basis of new property in the final installment.
TaxConnections Worldwide Tax Blogs gives our readers an opportunity to get to know these tax experts better through their writing. We highly recommend you read TaxConnections Worldwide Tax Blogs to stay informed of emerging tax trends. We highly recommend you interact with our bloggers through your comments on their blog posts. Commenting on a tax bloggers post is a great way to let them know you appreciate the knowledge they have shared. We also recommend you connect with our bloggers on their TaxConnections Microsite. Simply click on their name on their blog post and you will be guided directly to their Microsite where you can connect with them easily on the “ Connect With Me” button.
Here are TaxConnections Top Twenty Worldwide Tax Bloggers:
Peter Scalise
Daniel Erasmus
Harold Goedde
Kathryn Morgan
Hale Stewart
William Richards
Steven Potts
Virginia La Torre Jeker
Michael DeBlis
Annette Nellen
John Dundon
Manasa Nadig
Jerry Donnini
Ronald Cappuccio
Betty Williams
Claire McNamara
Robert McKenzie
James McBrearty
The price of a bond is the present value of future interest payments (an annuity) plus the present value of the maturity (face) value at its yield rate (rate to maturity). There is an inverse relationship between the yield rate and selling price (present value). The higher the yield rate, the lower the present value (selling price); the lower the yield rate, the higher the present value (selling price).
A wash sale occurs when the same securities are purchased 30 days before or after the sale. If a loss results, all or part of the loss is disallowed. If an equal or greater number of the same securities that were sold are purchased, the entire loss is disallowed. If fewer shares are purchased than were sold, part of the loss is disallowed. The disallowed loss is added to the basis of the securities purchased.
Example 1-total loss disallowed
On February 15, 2013, Joe sold 200 shares of Microsoft for $7,000 that he purchased on July Read More
A wash sale occurs when the same securities are purchased 30 days before or after the sale. If a loss results, all or part of the loss is disallowed. If an equal or greater number of the same securities that were sold are purchased, the entire loss is disallowed. If fewer shares are purchased than were sold, part of the loss is disallowed. The disallowed loss is added to the basis of the securities purchased.
Example 1-total loss disallowed.
This article is divided in to three parts. Part I will cover the general aspects of capital gains and losses and how and where they are reported on Form 1040 and supporting schedules. Part II covers special situations involving sales of securities-wash sales, gifts, and inheritances. Part III will cover mutual funds, stock rights, debt securities purchased at a discount and premium, and exchanges.
It is advantageous to have investment income in the form of long-term (held longer than one year) capital gains (LTCG) because they are taxed at a lower rate than ordinary income. For 2013, the net LTCG will be taxed at various rates depending on the tax bracket: Read More
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