A frequent question is whether inheritances are taxable. This is a frequently misunderstood question related to taxation and can be complicated. When someone passes away, all of their assets will be subject to inheritance taxation, and whatever is left over after paying the inheritance tax passes to the decedent’s beneficiaries. Sound bleak? Don’t worry, very…
To fully understand the impact of the law changes, we need to compare the prior tax law to the new tax reform. Under prior law, a taxpayer could deduct the interest he or she paid on up to $1 million of acquisition debt and $100,000 of equity debt secured by the taxpayer’s primary home and/or…
Senior Managing Associate and Principal Jennifer J. Thomas, CFP® and Tax Consultant Jessie Thomas, C.P.A. join Chief Investment Officer Troy Harmon, CFA, CVA for a discussion on planning for the first required minimum distribution from tax deferred retirement accounts at age 70 ½.
Gift taxes were created to prevent wealthy taxpayers from transferring their estates to their beneficiaries via gifts and thus avoid estate taxes when they pass away. But that does not mean only wealthy taxpayers need to be concerned with the gift tax provisions as, under many circumstances, even lower-income taxpayers may find they are liable…
Your actual student loan payments aren’t deductible, but the interest portion might be, thanks to the student loan interest deduction. In 2018, the maximum deduction is $2,500. You don’t need to itemize to claim this deduction. To qualify, you must meet a few requirements: First, the student loan on which you’re paying interest must be…
The tax treatment of awards received as the result of a lawsuit could result in taxable or non-taxable income, depending upon a number of issues. The laws are often complex and sometimes seemingly discriminatory. The actual taxation of an award is primarily based on the following factors: The nature of the legal action, The type…
The Tax Cuts and Jobs Act that was passed last year included a new tax credit for employers that allows them to claim a credit based on wages paid to qualifying employees while they are on family and medical leave. To qualify for the credit, an employer must have a written policy that provides at…
This is a common question: How long must taxpayers keep copies of their tax returns and supporting documents? Generally, taxpayers should hold on to their tax records for at least 3 years after the due date of the return to which those records apply. However, if the original return was filed later than the due…
Most small business owners are an expert in their field, but not necessarily in the accounting aspects of building a business. And, with this comes a few common mistakes. Yet, even simple small business accounting mistakes can prove to be financially limiting and costly down the road. With the help of an accounting professional, it…
In addition to the below, there may also be tax benefits under state law. Mortgage Interest Deduction One of the most important tax benefits of owning a home is that you may be able to deduct the mortgage interest you pay. If you itemize deductions on your federal income tax return, you can deduct the…
