Wealth Strategies Journal

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Author: Aryane Garansi (page 1 of 2)

US Tax Court: Failure to Report Gross Income of IRA Distribution

In Morris v. Commissioner of Internal Revenue, the United States Tax Court sought an answer to “whether [the] petitioners failed to report during 2011 taxable distributions from an individual retirement account (IRA).” While the petitioners were under a belief that the money they obtained from their father’s estate would … Continue reading

IRA Required Minimum Distribution Reminder to Retirees

The Internal Revenue Service reminded retirees who turned 70.5 during the 2014 tax year that they must start receiving the required minimum distribution from their Individual Retirement Accounts (IRA) or their work-related retirement plans such as a 401(k), 403(b), and 457 plans by April 1st of 2015. This deadline does not apply to … Continue reading

April 2015 AFRs

The Internal Revenue Service issued April 2015 AFRs in Rev. Rul. 2015-7. To see the April AFRs, please click here.

See Rev. Rul. 2015-7.

Posted by Aryane Garansi, Associate Editor, Wealth Strategies JournalContinue reading

IRS Tips for Home Mortgage Debt Cancellation

A tax payer usually has to pay taxes on cancelled debt regardless of whether all or part of the debt was cancelled. However, certain exclusions may apply to those whose mortgage debt was cancelled in the 2014 tax year making the cancelled debt not taxable. For example, if the cancelled … Continue reading

An Individual Cannot Defer Recognition of Gain in 9th Circuit

Ralph E. Holmes appealed a decision from Tax Court that considered the deficiencies and penalties associated with his tax returns from 2000 to 2004. The court below held, under section 1045, that an individual could not defer recognition of gain on the sale of stock. The Ninth Circuit found no clear error in … Continue reading

IRS Launches Directory of Tax Preparers

The Internal Revenue Service launched a new helpful tool for tax preparers this week to help locate tax preparers in an online directory. The directory includes agents, CPAs, attorneys and  others that have completed requirements for filing taxes for the current filing season.  All of those listed have a Preparer … Continue reading

Laches Warning for Bank Lenders

The recent case of TrustCo Bank v. Mathews sends a warning to bank lenders concerning the expiration of the statute of limitations and the doctrine of laches. TrustCo Bank was on notice that a guarantor in a loan was transferring assets out of her name, but did not file suit … Continue reading

Same-Sex Marriages and the ECOA Under Florida Law

The Equal Credit Opportunity Act (ECOA) prohibits creditors from discrimination based on marital status, race, national origin, religion, sex, or age.  Since marriage licenses have been issued to same-sex couples in Florida since January 6, 2015, one might question whether the protections of the ECOA will have any effect on those married … Continue reading

Taxes on Household Employees

Household employees are paid under the table a lot, but the penalties that can come from this could be substantial. The IRS is cracking down in this area and people that have been paying their household employees under the table could face years of owed back taxes plus penalties and … Continue reading

Should You File a Tax Return for 2014?

Others are required to file a 2014 tax return. Under the tax rules, your income, filing status, and age determine if you need to file a tax return. A new Premium Tax Credit was added this year for those that bought health insurance from the Health Insurance Marketplace in 2014, … Continue reading

President Obama Announces Middle-Class Tax Reform

In preparation for the State of the Union address, President Obama released his tax proposal for middle class families. This proposal seeks to provide relief for middle class families with more childcare, education, and retirement tax benefits and other credits. President Obama plans to increase capital gains and dividend tax rates … Continue reading

Largest Wealth Transfer Over Next Three Decades

Over the next three decades, the wealthiest Americans will transfer over $6 trillion in assets. Global wealth consultancy President of Wealth-X, David Friedman, stated that this will be the largest transfer of assets from one generation to the next. Many of those included were self-made individuals. Middle-class Americans will see a reduction … Continue reading

Donor-Advised Funds Not Eligible for Tax-Free IRA Transfers

Donor-advised funds such as Vanguard Charitable are not qualified recipients for tax-free individual retirement account transfers. Many charities are eligible for the transfer that allows those 70.5 years of age or older to transfer as much as $100,000 out of their IRAs to charities tax-free. The transfer counts as the investor’s required minimum … Continue reading

Publication 929 Rules for 2014 Tax Preparation

The Internal Revenue Service issued the tax rules for children and dependents for use in 2014 tax preparations. Publication 929 contains the filing requirements for those that can be claimed as dependents on another’s tax return in Part 1. Part 2 contains information on the tax on unearned income of certain children and … Continue reading

Publication 936 Rules for 2014 Tax Preparation

The Internal Revenue Service issued the rules for home mortgage interest deduction for use in 2014 tax preparation. Part I explains the rules required for home mortgage interest, such as what qualifies as home mortgage interest and how to report it on your tax forms. Part II contains the limitations … Continue reading

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