The Tax Professionals Blog
How Married People Filing Separately Can Qualify for the Premium Tax Credit
Posted by Lee Reams Sr. on
Generally, a married taxpayer filing separately (MFS) who does not qualify as a victim of domestic abuse or spousal abandonment cannot take the premium tax credit (PTC) and thus must repay all advance premium tax credit (APTC) received (Sec 36B(c)(1)(C)).
Will Taxing Olympic Gold Soon be Coming to an End?
Posted by Lee Reams Sr. on
Most people don’t realize this, but in addition to receiving a medal, winning U.S. Olympic athletes are compensated by the U.S. Olympic Committee with prize money: $25,000 for a gold medal, $15,000 for a silver medal and $10,000 for a bronze medal.
Retirement and Qualified Longevity Annuities
Posted by Lee Reams Sr. on
IRS Regulations finalized in 2014 provide some relief for individuals who want to stretch out their retirement funds by generally allowing taxpayers to use up to the lesser of 25% or $125,000 of their retirement account to purchase a qualified longevity annuity contract (QLAC) within the account. The amount used to purchase the QLAC is subtracted from the account balance and would thus reduce the RMD from the retirement account each year until a specified time in the future when distributions must begin from the annuity. Converting a Home to a Rental
Posted by Lee Reams Sr. on
It is not uncommon to have a client convert a personal residence to a rental property. Some even think if they convert to rental use a home that has declined in value, they can then deduct a loss when they sell the property, which is not the case.
Caregiver Tax Advice
Posted by Lee Reams Sr. on
When a taxpayer is helping to support both parents and is having difficulty showing that he or she provided over half of the support for both, it may be appropriate for the taxpayer to designate the support to only one of the parents. This could help overcome the more than 50% dependency support requirement for one of them, thus allowing an exemption deduction.