Blog | WM. F. Horne & Company, PLLC


Is Bunching Right for You?

item or stan

Article Highlights:

  • Standard Deductions
  • Itemized Deductions
  • Bunching Strategy
  • Medical Expenses
  • Taxes
  • Charitable Contributions

Note: The is one of a series of articles explaining how the various tax changes in the GOP’s Tax Cuts & Jobs Act (referred to as “the Act” in this article), which passed in late December of 2017, could affect you and your family, both in 2018 and future years. This series offers strategies that you can employ to reduce your tax…

  • 10 Sep, 2018
  • Jacqueline Cran
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Taxation of Legal Settlements or Awards


legal award


Article Highlights:

  • Physical Injury and Physical Sickness
  • Wrongful Death
  • Emotional Distress
  • Previously Deducted Medical Expenses
  • Employment Discrimination
  • Age Discrimination
  • Unpaid or Disputed Employment Earnings
  • Interest
  • Settlements
  • Legal Costs

The tax treatment of awards received as the result of a lawsuit could result in taxable or non-taxable income, depending upon a number of issues. The laws are often complex and sometimes seemingly discriminatory. The actual taxation of an award is primarily based on the following factors:

  • The nature of the legal action,
  • The…
  • 6 Sep, 2018
  • Jacqueline Cran
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So Long To The Tax Deduction For Investment Expenses




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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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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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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Why am I Being Audited by the IRS?


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
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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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Moving Deductions are Over




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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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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Is an Inheritance Taxable?



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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