Blog | WM. F. Horne & Company, PLLC

06Aug2018

So Long To The Tax Deduction For Investment Expenses

 

investment

 

Article Highlights:

 

  • Itemized Deduction
  • Net Investment Income
  • Investment Interest Deduction
  • Surtax on Net Investment Income
  • Retirement Account Fees

Under the new tax reform law, investment expenses are no longer deductible as a miscellaneous itemized deduction. This means, for example, that if you have an investment account and are paying fees to have it managed, those fees are no longer deductible. This also means IRA and other types of retirement account fees that are considered investment fees…

  • 6 Aug, 2018
  • Jacqueline Cran
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02Aug2018

How Long Should You Hold On To Old Tax Records?

 

tax records (2)

 

Article Highlights:

 

  • The general statute: 3 years
  • Longer durations in some states
  • Fraud, failure to file and other issues that extend the statute’s duration
  • Keeping the actual return
  • Ordering copies of previously filed returns

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…

  • 2 Aug, 2018
  • Jacqueline Cran
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30Jul2018

Has Tax Reform Taken Away Your Home Mortgage Interest Deduction?

 

mortgage interest

 

Article Highlights:

 

  • Background
  • New Limit
  • Equity Debt Interest
  • Interest Tracing
  • Refinancing

 

The Tax Cuts and Jobs Act of 2017, more commonly referred to as tax reform, substantially altered the itemized deduction for home mortgage interest and affects just about everyone who has been deducting their home mortgage interest as an itemized deduction on their tax returns.

Background: To fully understand the impact of the law changes, we need to compare the prior tax law to the…

  • 30 Jul, 2018
  • Jacqueline Cran
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26Jul2018

Why am I Being Audited by the IRS?

audit.blog

 

With the 2018 filing season currently behind us, notices have started to appear in mailboxes. While the IRS letterhead strikes fear into the hearts of most Americans, a vast majority of those notices are nothing to fear, since most of them are computer-generated and referring to outstanding tax bills you haven’t paid yet or errors on your tax return that can be easily addressed. Simply getting an IRS notice is…

  • 26 Jul, 2018
  • Jacqueline Cran
  • 0 Comments
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23Jul2018

Taxpayers Find Gift Tax Reporting Confusing

gift tax

 

 

Article Highlights:

  • Gift Tax Return Filing Requirements
  • Lifetime Estate Exclusion
  • Annual Gift Exclusion
  • Tuition and Medical Exclusions

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 for filing…

  • 23 Jul, 2018
  • Jacqueline Cran
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19Jul2018

Moving Deductions are Over

 

moving

 

Article Highlights:

  • Prior Law Deduction
  • Deduction Repealed
  • Military Exception
  • Employer Reimbursement
  • Reimbursement Gross Up

Prior to the passage of tax reform, individuals who moved as the result of a job change or job relocation could deduct their unreimbursed moving expenses if the driving distance from their home to the new job location was at least 50 miles more than the driving distance from home to the old job location. There was also a requirement that the…

  • 19 Jul, 2018
  • Jacqueline Cran
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16Jul2018

A Mid-Year Tax Checkup May Be Appropriate

tax checkup

Article Highlights:

 

  • Concerns About Proper Withholding
  • Late IRS W-4 and Withholding Tables
  • New W-4 Complications
  • Self-employed Estimated Payments
  • Events That Can Impact Taxes

Taxes are similar to vehicles, in that they sometimes need a check-up to make sure they are performing as expected. That is especially true for 2018, with all of the changes brought about by tax reform.

One area of major concern is the amount of taxes individuals are withholding from their wages. Tax…

  • 16 Jul, 2018
  • Jacqueline Cran
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05Jul2018

Is an Inheritance Taxable?

inheritance

 

Article Highlights:

 

  • Estate Tax
  • Estate Tax Exemption
  • Fair Market Value at Date of Death
  • Step-up in Basis
  • Community Property
  • Deferred Untaxed Income

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 few…

  • 5 Jul, 2018
  • Jacqueline Cran
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25Jun2018

Got a Letter from the IRS?

 

IRS Notice

 

Article Highlights:

  • Confirm the Letter Was Not Sent in Error
  • Examine the Contents
  • Avoid Procrastination, Which Leads to Bigger Problems
  • Send Any Payments
  • Consider Change-of-Address Complications
  • Be Aware of ID Theft

If you have received an IRS envelope from the Internal Revenue Service (IRS) in your mailbox that does not contain a refund check, it will probably cause your heart rate to increase. Remain calm. Most of the issues in these letters can be dealt with…

  • 25 Jun, 2018
  • Jacqueline Cran
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11Jun2018

Good and Bad News about the Home Office Tax Deduction

 

home office

 

Article Highlights:

  • Home Office
  • Qualifications
  • Actual-Expense Method
  • Simplified Method
  • Income Limitation
  • Employee Deduction

“Home office” is a type of tax deduction that applies to the business use of a home; the space itself may not actually be an office. This category also includes using part of a home for storing inventory (e.g., for a wholesale or retail business for which the home is the only fixed location); as a day care center; as a physical meeting…

  • 11 Jun, 2018
  • Jacqueline Cran
  • 0 Comments
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