Regardless of the amount, to deduct a contribution of cash, check, or other monetary gift, you must maintain a bank record, payroll deduction records or a written communication from the organization containing the name of the organization, the date of the contribution and amount of...
The following items are deductible as alimony payments if part of a divorce decree, even if the payments are made directly to a bank or insurance company: Car Payments Health Insurance Premiums One half the interest on mortgage payments made on a jointly held home. If you make...
Thinking about one's marriage in IRS terms quickly can turn anybody into a stand up comedian. In all seriousness though the times appear to be ripe for change in how the tax law defines marriage. I write this because the Justice Department announced that it...
Your vehicle was hit by hail and the insurance company agreed to compensate you $4,600 AND allow you to keep the vehicle AND not issue you a salvage title. In most situations this is non reportable. However not always. This may be reportable on IRS...
Children with investment income may have part or all of this income taxed at their parents’ tax rate rather than at the child’s rate. Investment income includes interest, dividends, capital gains and other unearned income. Your child’s tax must be figured using the parents’ rates if...
Rental income is any payment you receive for the use of or occupation of property. Expenses of renting property can be deducted from your gross rental income. You generally deduct your rental expenses in the year you pay them. Publication 527, Residential Rental Property, includes information...
Stephens V. Commissioner, 93 TC 108 showed that any payment labeled 'restitution' or 'punitive' is non-deductible as an expense. If the payments are labeled 'compensatory' then in order for the payment to be a deductible expense the question of whether the 'compensatory' expense was ordinary...
The home office deduction is something that you can choose not to take and sometimes that is the best choice. If you are legitimately using dedicated space in your house for your on-going business with a profit motive or you are required to keep an...
Traditional retirement accounts are generally speaking considered a protected asset should you be required to endure FEDERAL bankruptcy protection. However an Inherited IRA is not generally considered a protected asset in 2 distinguishable regards: The distributions of funds from an inherited IRA to a surviving beneficiary...
When signing up for a health insurance plan registered under your business, the business may be able to deduct premiums paid for medical and dental insurance and qualified long-term care insurance for you, your spouse, and your dependents if you are one of the following: A...
