Tax Rules

New proposed legislation cuts the benefit of donating to charity and receiving tax credits in return.

Although this 1040 looks smaller, it is not an upgrade for anyone except for the IRS.

There is unique tax planning involved though when an age 70 1/2 IRA owner was younger than the beneficiary.

Among its many changes, the Tax Cuts and Jobs Act created a new tax concept when it comes to managing the capital gains.

According to Internal Revenue Code, in order for an account to be a 529 account, the custodian must meet six requirements.

Sadly, the IRS is very clear about this; contributions must be cash.

Depending on your particular case and Social Security agent, you may get your surcharge waived, lowered, or upheld.

Luckily for Roth lovers like us, you don’t have to choose between Roth conversions or Roth contributions.

Under the Tax Cuts and Jobs Act, you are still allowed to make nondeductible contributions and still allowed to convert IRA assets to Roth IRA.

It is lazy of the IRS to put the burden of proving innocence on the taxpayer while punishing them as though they are guilty.

On January 18, 2018, the IRS updated their Frequently Asked Questions page to come into line with the new Tax Cuts and Jobs Act.

Seriously, open and fund your Roth IRA now. You’ll regret it later if you don’t get started now.

In 2015, Congress passed the PATCH Act that included a provision which allowed computer purchases to be a qualified education expense for 529 plans. But what of computer repairs?

The Tax Cuts and Jobs Act came out of conference, which means that the House and Senate bills have been reconciled into one piece of legislation.

While this may seem complex, don’t let it deter you from using a 529 account to the fullest extent possible.

It looks like something from this proposal will become law. Right now, the bill is in committee where the differences are being resolved.

One unsettled issue is the fate of Alternative Minimum Tax (AMT).

We’ve been waiting to see what our congressmen and women are going to decide for our 2018 tax law. As we’ve already entered the holiday season and can see the new year in sight, they are certainly cutting it close. … Read More

We will have to wait and see what tax law we have after Congress reconciles the bills and the final version is signed into law by the President.

We’ve been waiting to see what our congressmen and women are going to decide for our 2018 tax law. As we’ve already entered the holiday season and can see the new year in sight, they are certainly cutting it close. … Read More

With this proposed expansion, 529 accounts may become the most cost-efficient way to fund all education expenses.

It is an inconvenience during the holiday season to say the least, but Roth conversions are worth the effort.

Coverage is considered unaffordable if the lowest cost Bronze-level plan available to you through the Marketplace in 2017 is more than 8.16% of your household income.

How do you determine the value of your gift of stock? The IRS doesn’t like you to use rough estimates on your tax forms; they prefer a black and white number.

It’s hard to know… but I bet I’m not the only one looking at my compensation differently.

To avoid the 10% penalty, do I have to satisfy the 5-year holding period for my Roth conversions if I’m over age 59 1/2? The IRS is not very clear when it comes to when you need to pay penalties on Roth IRA withdrawals, but I think I know the answer.

Here are 8 reasons you’d want to lower your AGI and 8 methods to lower your AGI.

Like how diner coffee gets more bitter as the waitress tops off your cup with more coffee from the pot, so too the growth on your nondeductible assets increases your tax owed by decreasing the percent post-tax assets in your cup.

Yikes! This is a costly mistake.

The 27 lines, because they are so simplified, end up being difficult to follow what exactly they do. So, for those of you who are curious, here’s what they do.

You can’t touch the earnings on your contributions until you’ve had an account open for 5 years and you’re either over age 59 ½ or you meet special exceptions.

Dividends and interest received from U.S debt obligations can be deducted on many state tax returns.

The key to getting the waiver though is showing that “you are taking reasonable steps to remedy the shortfall.”

David John Marotta was interviewed on radio 1070 WINA’s Schilling Show discussing corporate tax rates, and why they should be lowered.

The rules for post-70 ½ IRA contributions depend upon whether the account is a traditional IRA, Roth IRA or SEP IRA.

The IRS has a rule that if you are doing a rollover for a 401(k), you have 60 days to complete that process. But what if you experience a tragedy and can’t finish on time?

With many types of retirement accounts available, it can be difficult to keep track of how much you can put away where, especially if you are eligible to contribute to multiple accounts.

The IRS does not require dependents whose gross income is only earned income to file a tax return if the amount is less than a certain amount.

We know how federal rules require you to either have tax withheld or make estimated payments of tax that will be due, but it is easy to forget that states have their own revenue departments and their own rules.

The estate tax return is definitely complex, but that’s because it has to account for the multitude of special rules that only apply to a few households.

The fact that we have an 80% “generous grandparent” tax is ridiculous.

SEP plans offer a powerful way to provide for your own retirement in the same way that 401ks do.

Using a 1031 exchange to turn investment property into residential property is possible, but it takes careful planning from the outset.

Here are the four criteria which must be met in order for margin loan interest to be tax deductible.

Without the burden of federal, state, and local taxes, you could leave your job at 2:27pm every day and earn the same salary.

David John Marotta was recently interviewed on radio 1070 WINA’s Schilling Show, discussing taxation and the burden of government.

The IRS does not do a good job of helping people understand capital gains taxes. They provide a worksheet to help you calculate it, but it has so many steps that it’s nearly impossible to figure out what’s going on.

Wash sale rules need to be followed when realizing capital losses for taxes but can be burdensome to track and monitor.

There are some cases that are not as straightforward and if you fall into these categories, you might not know whether or not you are allowed to contribute to a Roth IRA.

More than many other candidates, Ted Cruz’s tax plan aims to fundamentally change our tax system.