The Tax Professionals Blog
Tax Issues When Converting a Home to a Rental
Posted by Lee Reams Sr. on
When a taxpayer converts their home to a rental, there are a number of tax issues that come into play. The following are key tax circumstances that should be considered before making the decision to convert.Paid Family Leave and Taxes
Posted by Lee Reams Sr. on
Paid family leave (PFL) is a form of compensation paid to eligible individuals who are unable to work because they are caring for a seriously ill or injured family member or bonding with a minor child within one year of the birth or placement of the child in connection with foster care or adoption.Misclassified as an Independent Contractor
Posted by Lee Reams Sr. on
It is not uncommon to encounter a client with 1099-MISC income from an employer that is treating him or her as an independent contractor when your client is actually an employee.Tax Treatment of Emotional Distress Damages
Posted by Lee Reams Sr. on
A frequent question has to do with the taxation of damages awarded for emotional distress. Damages for physical injury or physical sickness are clearly tax-exempt and damages for emotional distress are generally taxable.Filing When Married to a Non-Resident Alien Spouse
Posted by Lee Reams Sr. on
Generally, a U.S. citizen or a U.S. resident who is married to a nonresident alien must file as Married Separate. However, a person who is a nonresident alien at the end of his taxable year, and who is married to a U.S. citizen or a U.S. resident can be treated as a U.S. resident for income tax purposes if the spouses so elect (Code Sec. 6013(g)(1)). By making the election they can file as MFJ.