The Tax Professionals Blog
Standard Mileage Rate for Motorcycles & Leased Vehicles
Posted by Lee Reams Sr. on
Two questions frequently raised are: is the standard mileage rate allowed for motorcycles? Can the standard mileage rate be used for leased vehicles?Gambling Winnings May Impact Health Insurance Costs
Posted by Lee Reams Sr. on
Gambling winnings, even if there’s a net loss for the year, and game show winnings can increase the cost of health insurance premiums for low-income individuals or families who obtain their insurance through the Marketplace and, in some cases, those enrolled in Medicare coverage.Deducting IRA Losses
Posted by Lee Reams Sr. on
A question that frequently arises is “can IRA losses be deducted?” The answer to that question is yes, but only under certain very limited circumstances.
There May Be More Equity Debt than Meets the Eye
Posted by Lee Reams Sr. on
For both regular tax and AMT computations, interest paid on a debt to acquire or substantially improve a first or second home is deductible as long as it does not exceed the debt limit (generally $1 million). This is also true of refinanced debt, except that any increase in debt is treated as equity debt. For regular tax purposes, the interest on up to $100,000 of equity debt on the first two homes can also be deducted.Dealing With Incentive Stock Option AMT
Posted by Lee Reams Sr. on
There are two types of stock options: qualified and non-qualified. Qualified options are also referred to as incentive stock options (ISOs). For non-qualified options, the difference between the stock’s exercise price and its fair market value (FMV) is treated as ordinary income; for employees, this difference is generally is included as income on their W-2s. No alternative minimum tax (AMT) preference income results from exercising a non-qualified stock option.