The Tax Professionals Blog
Preserving Capital Loss Carryovers
Posted by Lee Reams Sr. on
The question frequently arises whether or not an individual must file a return, even if not otherwise required to file, in order to preserve a capital loss carryover.Don’t Overlook Medical Dependents
Posted by Lee Reams Sr. on
Medical expenses paid for dependents may be deducted by a taxpayer. To claim these expenses, the person must have been a dependent (qualified child or qualifying relative) either at the time the medical services were provided or at the time the expenses were paid.How to handle multiple 401(k) accounts during tax time
Posted by Lee Reams Sr. on
It is not uncommon for individuals to have multiple employers, each with a 401(k) plan. This can possibly create a situation where the employee makes an excess elective deferred compensation contribution. The maximum annual contribution is $18,000 ($24,000 if age 50 and over).Business Deductions: Credit Card Mixed Interest
Posted by Lee Reams Sr. on
When it comes to credit card debt where a portion of the debt is for personal purchases and part for business, can any part of the interest charged on the debt be deducted as business interest?When is Alimony Non-Taxable?
Posted by Lee Reams Sr. on
IRC Section 71(b)(1) defines the term alimony. The code has four requirements, three of which are commonly recognized by tax professionals: the payments must be in cash (71(b)(1)), taxpayer cannot live together (71(b)(1)(C)) and there is no liability for the payments after the death of the payee spouse (71(b)(1)(D)).