Tax Matters to Consider When Selling a Home Tax Tip 2022-78 (5/19/2022) Individuals selling their home should consider the following tax matters: Principal residence exclusion. Taxpayers may qualify to exclude from income all or part of any gain from the sale of their home (“principal residence exclusion”). To qualify for this exclusion, the taxpayer must meet… Read More
Dear Client: This letter is in response to your recent inquiry about the tax implications of using your residence as a bed and breakfast. As a general rule, no deduction is allowed for expenses incurred in connection with a taxpayer’s home. In addition to exceptions for certain personal use deductions (i.e., the mortgage… Read More
Dear Client If you generally receive distributions from your IRA and make charitable contributions during the year, you may benefit from arranging a qualified charitable distribution (QCD). A QCD is generally a nontaxable distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to a charitable organization. A QCD… Read More
Dear Client: Virtual currency transactions are taxable by law just like transactions in any other property. The IRS is aware that some taxpayers with virtual currency transactions may have incorrectly reported or failed to report income and pay the related tax. Therefore, it is actively addressing potential non-compliance in this area. Millions of taxpayers… Read More
Dear Client: I am writing in response to your recent inquiry involving the advantages and disadvantages of opening up a Roth 401(k). The biggest advantage of a Roth 401(k) is that appreciation on the contributions are never taxed. However, this comes because of the main disadvantage of Roth 401(k)s – contributions are elective… Read More
Dear Client: You recently inquired about the income tax consequences of renting out your vacation home for part of the year. The tax consequences depend upon the amount of time the home is rented and the amount of time you use the home for personal purposes. Minimum Rental Use. If you rent the property for… Read More