The Tax Professionals Blog

Overlooked Health Insurance Deductions Strategies

Posted by Lee Reams Sr. on

Self-employed individuals may take above-the-line deductions (generally limited to the net earnings from self-employment) for the amount paid during the tax year for medical insurance for the individuals, their spouses, their dependents and their children under the age of 27.

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IRD Income and the Frequently Overlooked Estate Tax Deduction

Posted by Lee Reams Sr. on

When a client comes in with a 1099R or Schedule K-1 with income from an inherited individual retirement account (IRA), ask two very important questions

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Forcing Itemized Deductions Can Reduce the Alternative Minimum Tax

Posted by Lee Reams Sr. on

For Alternative Minimum Tax (AMT) purposes, only medical costs (net after the AGI reduction), acquisition debt interest, investment interest, charitable deductions, personal casualty losses, and tier-1 miscellaneous deductions are deductible. In addition, for AMT purposes, the standard deduction is not allowed.

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Tax Treatment of Mortgage Assistance Payments

Posted by Lee Reams Sr. on

We have received numerous questions related to the tax treatment of the mortgage assistance payments reported on Form 1098-MA, specifically about the taxability of these payments and the amount that is deductible as home mortgage interest.

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Form 1098 for 2016 Will Be a Game Changer

Posted by Lee Reams Sr. on

Form 1098, the Mortgage Interest Statement, is used to report to borrowers and the IRS any mortgage interest paid on home and other real property mortgages. This reporting is required of payment recipients (i.e., lenders) who receive mortgage interest payments of $600 or more during the year in the course of their trades or businesses. The form doesn’t need to be filed for interest received from a corporation, partnership, trust, estate or association.

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