April 1 - Last Day to Withdraw Required Minimum Distribution Last day to withdraw 2014’s required minimum distribution from Traditional or SEP IRAs for taxpayers who turned 70½ in 2014. Failing to make a timely withdrawal may result in a penalty equal to 50% of the amount that should have been withdrawn. Taxpayers who became 70½ before 2014 were required to make their 2014 IRA … [Read more...] about April 2015 Individual Due Dates
Installment Sale – a Useful Tool to Minimize Taxes
Selling a property one has owned for a long period of time will frequently result in a large capital gain, and reporting all of the gain in one year will generally expose the gain to higher than normal capital gains rates and subject the gain to the 3.8% surtax on net investment income added by Obamacare. Capital gains rates: Long-term capital gains can be taxed at 0%, 15%, or … [Read more...] about Installment Sale – a Useful Tool to Minimize Taxes
Local Lodging May Be Deductible
Article Highlights: Away-from-home lodging Non-away-from-home lodging Requirements to be deductible Substantiation requirements A business deduction is allowed for lodging when a taxpayer travels away from his or her “tax home.” A taxpayer’s tax home is generally the location (such as a city or metropolitan area) of a taxpayer’s main place of business (not necessarily … [Read more...] about Local Lodging May Be Deductible
Family Home Loan Interest May Not Be Deductible
Article Highlights: Qualified residence interest is deductible interest that is paid or accrued during the tax year on acquisition indebtedness or home equity indebtedness with respect to any qualified residence of the taxpayer. Acquisition indebtedness means that any indebtedness that is incurred in acquiring, constructing, or substantially improving any qualified … [Read more...] about Family Home Loan Interest May Not Be Deductible
Tax Break for Sales of Inherited Homes
Article Highlights: Inherited Basis Certified Appraisals Loss On Sale Potential Law Change People who inherit property are often concerned about the taxes they will owe on any gain from that property’s sale. After all, the property may have been purchased years ago at a low cost by a deceased relative but may now have vastly appreciated in value. The usual question is: … [Read more...] about Tax Break for Sales of Inherited Homes