Category: Tax
‘Tis the season: Real estate gifts must be appraised
If your holiday list this year includes gifts of real estate, the gifts must be appraised and made at their current fair market value per the IRS. A detailed appraisal by a professional appraiser, who is thoroughly trained in the...
Guest Author Robert Steinberg of Blue Chip Partners: What you need to know about capital gains distributions
One of the most significant downsides of investing in mutual funds in non-retirement accounts is that they are required to make annual distributions of virtually all capital gains recognized during that year. This article highlights potential issues and steps that...
Check tax withholding amount now to prevent a big surprise in April
The Internal Revenue Service today urged taxpayers to check their tax withholding at Tax Withholding Estimator while there's time left in 2022 to benefit from any necessary changes. An adjustment made now will help people avoid a big surprise, such...
2023 retirement contribution limit increases announced
The IRS has announced new contribution limit increases fro both 401(k) and IRA retirement savings plans: The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased to $22,500,...
New clarifications announced for hardship distributions from retirement plans
A retirement plan may, but is not required to, provide for hardship distributions. Many plans that provide for elective deferrals provide for hardship distributions. Thus, 401(k) plans, 403(b) plans, and 457(b) plans may permit hardship distributions. If a 401(k) plan...
Teachers get back-to-school gift from IRS: increased deductions for classroom expenses
For the first time in 20 years, the Internal Revenue Service is increasing the deduction limit for the amount of money teachers spend on school supplies, the agency has announced. Teachers will now be able to deduct up to $300...
Penalty relief coming for taxpayers and businesses
The IRS has announced broad-based penalty relief for certain 2019 and 2020 returns due to the COVID-19 pandemic. The penalty abatement will be automatic for people and businesses who qualify and if the penalty has already been paid, the taxpayer will...
Freelance (or gig) workers need to keep these tax rules in mind
The IRS wants freelance or "gig" workers to understand that their work is taxable for payments received in 2022 to totals exceeding $600, regardless of the total number of transactions or whether the work is full-time or part-time. While an employer...
A Kovel agreement can privilege communication from your CPA
Attorney-client privilege is a legal concept that protects confidential communications between attorneys and clients that are made for the purpose of obtaining or giving legal advice. The privilege, which is owned by the client, is intended to encourage full and candid...
Form 706 extension for portability changes from two to five years from date of death
The IRS has provided a simplified method for certain taxpayers to obtain an extension of time to file a return on or before the fifth anniversary of the decedent's death to make a portability election. For purposes of federal estate...