What are the IRA contribution and withdrawal rules for 2020?
- David Greene
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First I want to let everyone know that the 2020 tax return filing deadline has been extended until May 17. The CARES Act changed many rules related to IRAs for 2020. First one can withdraw up to $100,000 without incurring…
Highlights of the relief bill signed by President Trump in December.
- David Greene
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The Consolidated Appropriations Act, 2021 signed by the President on December 27 is a very comprehensive relief law but here are some of the highlights: (1) It provides a $600 stimulus check for eligible individuals, which have already been issued;…
What to know about gifting stock to a charity.
- David Greene
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There are many alternative ways to donate other than money. One I want to discuss today is the gift of stocks. If you have been holding some stocks for a good while they have probably increased in value with substantial…
Is cryptocurrency taxable? How is it taxed?
- David Greene
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Cryptocurrency is a new medium of exchange that is rapidly growing in popularity. Before investing in any one of the types of cryptocurrency (bitcoin being the most popular) you should realize that it is not backed by or protected by…
Can a W-2 employee deduct unreimbursed employee expenses?
- David Greene
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Prior to 2017, if a W-2 employee had business expenses related to his employment that his employer did not reimburse, he could take a deduction for those expenses. However, the Tax Cuts and Jobs Act of 2017 eliminated those deductions…
If a student loan is discharged, is the discharged amount taxable?
- David Greene
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Not in all cases. The general rule is that, if a debt you owe is discharged, the amount discharged now becomes income to you because you do not have to pay back the debt. I.e., you received money and used…
Can I use my unreimbursed employee mileage expense as a deduction in 2020?
- David Greene
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Unfortunately, you can no longer use mileage on the job as an unreimbursed business expense when you itemize deductions. In my practice I have found that, most of the time, those expenses were disallowed in an audit because the taxpayer…
What are the current rules about meal and entertainment deductions?
- David Greene
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The new tax law (TCJA) has made several changes in the deductibility of business meals and entertainment. I will address deductions for meals this week and entertainment next week. If a meal is allowed as deductible, generally only 50% of…
How to generate proof of expenses in an audit.
- David Greene
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As you know the IRS will not accept your word for expenses. They want to see backup documents and proof of payment. If you did not keep receipts, you can order old bank statements from your bank and then go…
When does an incorrect tax return become criminal, Part 2?
- David Greene
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Last week I stated that that only fruadulent acts lead to criminal trouble and I listed five things that can cause real trouble. This week I will add four more things you do notwant to do that, if done, can lead…