Will it help to itemize deductions – Part 2?
- March 19th, 2019
- David Greene
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Last week I discussed the standard deduction changes and this week we’ll take a brief look at itemized deductions. Many deductions are still allowed but limited. Foreign income taxes, state and local real and personal property taxes, and state and…
Will it help to itemize deductions for 2018?
- March 14th, 2019
- David Greene
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That is a question that has to be answered on an individual basis. The new law in general will help many people and hurt many other “middle class” people. We have already seen that many are upset because their refunds…
What are the odds of being audited.
- March 5th, 2019
- David Greene
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I get similar questions to this quite frequently. Here are some statistics from 2017. Out of 150 million tax filers in 2017, here are some stats based on gross income and other factors: Returns audited (a) for international taxpayers – 1…
Which tax form should I use to prepare my 2018 return, Form 1040, 1040A or 1040EZ?
- February 26th, 2019
- David Greene
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In prior years one had to choose one of the above forms based on the amount and kind of income you made, whether or not you itemize deductions, etc. However, pursuant to our new tax law, the IRS now states…
What is an ABLE account?
- February 20th, 2019
- David Greene
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ABLE is an acronyn for Achieving a Better Life Experience. ABLE accounts, created by IRC Sec. 529A, are availanble to people who become disabled before age 26. Distributions, including earnings, are tax free to designated beneficiaries if used to pay…
Can one designate voluntary payments from the sale of corporate assets to pay the trust fund portion of delinquent taxes?
- February 14th, 2019
- David Greene
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Thank you for your question. The answer is, yes you can designate to which taxes the money you pay to the IRS will be applied as long as it is a “voluntary” payment and not one paid due to forced…
Are divorce related attorney fees ever deductible as a business expense?
- February 12th, 2019
- David Greene
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Under the current law, legal fees incurred during divorce may be deductible if incurred because the spouse is interfering in the taxpayer’s business or if the issue relates to taxable alimony income. In a recent case, the Tax Court held…
Will the interest paid on a home equity loan be deductible under the new tax law?
- February 8th, 2019
- David Greene
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The answer really depends on the purpose for which you used the loan proceeds. The new tax law suspended from 2018 to 2026 the deduction for interest paid on home equity loans, home equity lines of credit and second mortgages. However,…
Can VA disability payments be levied by the IRS?
- January 29th, 2019
- David Greene
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There is a federal statute that generally protects VA disability income from attachment, levy or seizure. However, in a recent federal case from Colorado, the judge ruled that this statute does not apply to levies issued by the IRS so…
Should one retain a professional to represent her in an audit?
- January 16th, 2019
- David Greene
- Comments Off on Should one retain a professional to represent her in an audit?
The answer is definitely “Yes.” The primary thing that needs to be addressed in an audit is to supply the revenue officer with a complete set of documents and information that he requests, but not extraneous information. The professional representative…