Personal Tax

In today’s economy, some taxpayers may need to take money out of their retirement plans to make ends meet. If you have or are contemplating on taking a distribution, there are some very important and unexpected tax issues you need to be aware of. Withdrawals from tax-deferred retirement accounts, such as Traditional IRAs are generally taxable and will be added to … [Read more...] about Did You Take an Early Distribution from Your Retirement Plan?

In an effort to get the economy back on the rails again, the 2010 Tax Relief Act permits businesses to claim a 100% depreciation deduction (100% bonus depreciation allowance) in the year that qualifying assets are placed in service. Qualified leasehold improvements clearly are eligible for this special 100% write-off. Bonus depreciation basics - In general, a leasehold … [Read more...] about 100 Percent Write-Off for Qualified Leasehold Improvements

If you work in an occupation where tips are part of your total compensation, you need to be aware of several facts relating to your federal income taxes: Tips are taxable - Tips are subject to federal income, Social Security and Medicare taxes.  The value of non–cash tips, such as tickets, passes or other items of value, is also income and subject to … [Read more...] about Tax Tips about Tip Income

Just a reminder to those who have not yet filed their 2010 tax return that April 18, 2011 is the due date to either file your return and pay any taxes owed, or file for the automatic six-month extension and pay the tax you estimate to be due.  Normally the deadline is April 15, but when a due date falls on a weekend or holiday, the due date is extended until the next business … [Read more...] about Tax Filing Deadline Rapidly Approaching

When property is divided up in a divorce, there are no immediate tax consequences.  Therefore, if you transfer your interest in the home to your spouse, it will not result in a taxable gain or loss to either you or your spouse. However, let's say that your spouse assumes the home at the community basis. Generally, community basis is what was jointly paid for the home plus the … [Read more...] about Dividing Property in a Divorce