Hobby-Related Loss Deductions Are Disallowed, but Don’t Give Up Hope
Let’s say you have an unincorporated sideline activity that you think of as a business, including an activity involving horses. If you have a net loss (deductible expenses exceed revenue) on that activity and you think you can deduct that loss on your personal federal income tax return, think again! In IRS audits and in…
Close-Up on Mortgage Interest Deduction Rules
The Tax Cuts and Jobs Act (TCJA) imposes new limits on home mortgage interest deductions. Here’s how the changes could affect your tax situation. What Is Home Acquisition Indebtedness? Under the tax law, home acquisition debt is a mortgage taken out “to buy, build, or substantially improve a qualified home (your main or second home)….
Beefing Up Benefits as War for Talent Intensifies
In a tightening labor market, employers across the country are reporting that it’s becoming tougher and tougher to fill important job vacancies. In fact, some are seeking to improve their ability to compete for talent by shoring up their employee benefits. According to the Society for Human Resource Management 2015 Strategic Benefit Survey, recruiting workers…
Uncertain Tax Position Disclosures: Is Your Organization in Compliance?
As a not-for-profit, tax-exempt organization, you might think the subject of “uncertain tax positions” (UTPs) doesn’t apply to you. Think again. Some of the basics of your operations, including your tax-exempt status, could create uncertain tax positions that trigger critical reporting obligations. FIN 48 in a Nutshell For several years now, the Financial Accounting Standards…
Advantages of Sponsoring Another Charity
Let’s say an established not-for-profit organization provides medical services to low-income families. The organization is approached by a group that wants to serve the same population with periodic reduced-cost dental clinics, and it has already lined up several large donations. The fledgling group, however, doesn’t have 501(c)(3) status and wants the established organization to act…
Be Careful When Selling Out: Some Assets Are Hot
Sooner or later, one of your law firm partners will probably sell his or her partnership interest to an incoming partner. At that point, there will be important tax consequences for the exiting partner. This article explains the applicable federal income tax rules in a nutshell. The same rules apply if your firm operates as…
Financial Issues to Consider During and After a Divorce
Divorce is one of the most traumatic events that can occur in a person’s life. The emotional aspects of the break-up are difficult to handle, and the stress can be compounded by the financial implications. The finances that are typically finalized by a court ruling generally fall into three categories — alimony, child support and…
Avoiding the 10% Penalty On Early IRA Withdrawals
For one reason or another, you may need to take some money out of an IRA before reaching retirement. You can withdraw money from an IRA at any time and for any reason, but it’s important to keep in mind that most IRA withdrawals are at least partially taxable. In other words, you’ll owe regular…
How the New Limit on SALT Deductions Affects Homeowners
The ability to deduct state and local taxes (SALT) has historically been a valuable tax break for taxpayers who itemize deductions on their federal income tax returns. Unfortunately, the Tax Cuts and Jobs Act (TCJA) limits SALT deductions for 2018 through 2025. Here’s important information that homeowners should know about the new limitation. Thinking about…
Employers’ Responsibilities for Documents and Records
Question: Our company sponsors an insured group health plan. Are we, or our insurer, responsible for providing a summary of benefits and coverage? Answer: If your plan is fully insured, the obligation to timely provide a summary of benefits and coverage (SBC) lies both with the insurer and the plan administrator (usually the plan sponsor,…