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The Tax Professionals Blog

Analysis of Required Minimum Distribution for Year of the Individual Retirement Account Owner’s Death

Posted by Lee Reams II on

Often the question arises related to the need for a required minimum distribution (RMD) in the year of the IRA owner’s death.  Information on this requirement is sketchy at best.  The following has been gleaned from the regulations and IRS Publication 590-B. 

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IRAs and Unrelated Business Income

Posted by Lee Reams Sr. on

Generally an IRA is exempt from all income taxes.  An exception to that is tax on unrelated business income (UBI), which the IRA received from activities that are not substantially related to the functions for which the IRA is allowed an exemption from income tax, such as engaging in a business normally carried on for profit.

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Taxation of Pensions by Former Resident States

Posted by Lee Reams Sr. on

A frequent question is: what is the taxation of IRAs and qualified pensions by a taxpayer’s former state of residence?  The Congress in 1995 passed P.L. 104-95 (H.R. 394) that prevents states from taxing the pensions of former residents of any state received after December 31, 1995.  Prior to that date several states were taxing IRAs and qualified retirement plans on the premise they were based on income sourced to the state.

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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.

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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.

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