Why the rule exists There are circumstances that arise in which you may want to exchange property in your possession for similar property belonging to someone else. Rather than execute a buy/sell of the properties between yourselves involving gain/loss immediately, there may be the potential to simply trade the properties between yourselves deferring the outcome. [...]
First off, what is a 529 plan? A 529 plan is an education savings account to which parents--or whomever--can EDM - Bills 01 - Image courtesy of David Costillo Dominici at FreeDigitalPhoto.netcontribute money to cover the future college costs of a child, grandchild, etc--regardless of age (newborn or older). Congress created this qualified tuition program [...]
First off, what is a 529 plan? A 529 plan is an education savings account to which parents--or whomever--can contribute money to cover the future college costs of a child, grandchild, etc--regardless of age (newborn or older). Congress created this qualified tuition program in 1996, and it’s named after section 529 of the Internal Revenue [...]
Although it seems as if the recipient of a gift is the one who would pay any applicable gift tax on that gift, this is not actually the case. It's actually the giver of the gift that may owe gift tax. So if you give money OR property to someone as a gift, and that [...]
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Beginning in 2014, there is a new "Simplified Option" for computing the business use of your home. It can reduce recordkeeping burden for some taxpayers. However, there are restrictions which may limit the deduction to much less than is actually spent on your home office. Taxpayers can still use the standard or "Regular Method" though. [...]
There are certain statutes in place that determine how far back in time the IRS can go in order to review your tax returns. In all cases, it is in your best interest to file your tax returns as early as possible, as the clock does not start "ticking" until you've done so. Following is a [...]
A common question we receive at E. Daniel Miller, CPA, PC pertains to how business car expenses are handled. And it's true you're allowed a tax deduction for your car expenses when it is used in the ordinary course of your business. Now this doesn't apply to the use of your car in the course of [...]
What is a Rollover? The term rollover is typically used to describe the transfer of funds from a traditional IRA to another traditional IRA or eligible retirement account without suffering tax consequences. This can occur either through a direct transfer between the two accounts, or by check which the custodian of the distributing account writes to the [...]
Many of us hear the term "1099" or "Form 1099" tossed around a lot--especially at the end of the year. Many of us know it has something to do with income tax, especially if you're involved in your own business. Typically we know enough to realize that if someone's going to "1099 you" (give me [...]