Tax Season Tips

  Tax season 2017 is in full swing. Statistics issued by the IRS showed a 17.2% decline in the total number of returns received through February 10, 2017 compared to the same period last year.  The decline was most likely caused by the mandate on refunds on returns involving the Earned Income Credit and the[…]

Tax Benefits for New Parents

I was blessed with my first two grandbabies this summer! (Stone Alexander and Grace Jenna) While Grammie won’t realize any tax benefits from the birth of these two babies, their parents will become eligible for a whole new set of tax breaks.   Dependents   Claiming your son or daughter as a dependent will shelter[…]

Mid-Year Tax Planning

Summer is here, 2016 is half over, and it’s a great time to organize your taxes. It seems most of my clients wait until January to look for their records, organize their charitable donations, and review investment accounts.  While it may not be fun to spend a Saturday afternoon in July reviewing your tax records,[…]

Income Received For Serving as a Host Family

Question:  Are stipends taxable income for Federal income tax purposes?  The taxpayer has been serving as a host family for a foreign exchange student and has received monthly payments during 2014.  Should this income be taxable to the host family? There is not a specific exclusion for these payments under the Internal Revenue Code. Since[…]

Rental Real Estate Exceptions to the Passive Activity Loss Limitations

In general, rental activities are considered to be passive activities, which means losses incurred in rental activities are not deductible against active or portfolio income.  There are two exceptions to this general rule. Real Estate Professionals Real estate professionals who materially participate in real estate activities are not subject to the passive activity loss limitations. […]

Passive Activity Loss Limitations

In 1986 Congress passed the Tax Reform Act of 1986 which resulted in the recodification of the Internal Revenue Code.   IRC Section 469 became a part of our tax code as a result of the TRA 1986.  This provision requires taxpayers to classify their income into three categories: Active Income, includes wages, and active business[…]