Article Highlights: • Social Security Benefits • Child Care Credit • Partnership • Joint Venture • Material Participation • Retirement Benefits When both spouses in a married couple are jointly involved in the operation of an unincorporated business (generally a Schedule C), it is fairly common – but incorrect – for all of that business’s income to be reported as just one … [Read more...] about Little-Known Tactic Increases Child Care Credit
Personal Tax
Thinking of Converting Your Home to a Rental? Better Read this First
Article Highlights: • Home Gain Exclusion • Converting Homes that Have Declined in Value • Converted Basis • Passive Loss Limitations If you are considering converting your home to a rental, there are a number of tax issues you need to consider before making a final decision. One of the first issues to consider is that by converting your main home to a rental, you may be … [Read more...] about Thinking of Converting Your Home to a Rental? Better Read this First
Taking Advantage of Back-Door Roth IRAs
Article Highlights: • Roth IRA High Income Phaseout • Traditional-to-Roth IRA Conversions • Non-deductible Traditional IRA Contributions • Back-door Roth IRA • Pitfall of Traditional-to-Roth Conversions If you are a high-income taxpayer and would like to contribute to a Roth IRA but cannot because of income limitations, there is a work-around that will allow you to fund a … [Read more...] about Taking Advantage of Back-Door Roth IRAs
Who Claims the Kids? You or Your Ex-Spouse?
Article Highlights: • Custodial Parent • Dependency (Exemption) Release • Joint Custody • Tiebreaker Rules • Child’s Exemption • Head of Household Filing Status • Tuition Credit • Child Care Credit • Child Tax Credit • Affordable Care Act • Earned Income Tax Credit If you are a divorced or separated parent with children, a commonly encountered but often-misunderstood issue is … [Read more...] about Who Claims the Kids? You or Your Ex-Spouse?
Don’t Be Left Holding the Tax Bag
Article Highlights: • Paying Independent Contractors • 1099-MISC Reporting Threshold • Form W-9 Benefits • Penalties • Due Date If you use independent contractors in your business and pay them $600 or more during the calendar year, you are required to issue them a 1099-MISC after the close of the year. If you fail to do so, and your (if you operate as a Schedule C sole … [Read more...] about Don’t Be Left Holding the Tax Bag