Selling a property you have owned for a long period of time will frequently result in a large capital gain, and reporting all of the gain in one year will generally expose the gain to higher than normal capital gains rates and subject the gain to the 3.8% surtax on net investment income. Capital gains rates: Rather than being tax at ordinary income tax rates, that currently can be as high as 37%, long-term capital gains (LTCG) can be taxed at 0%, 15%, or 20% depending upon your overall taxable income for the year. 'Long-term' means that you've owned the property you sold for over one year. In ..read more

As parents, ensuring the financial security of our children is paramount. One effective tool for this is a custodial account, a financial mechanism designed to hold and protect assets for minors until they reach adulthood. In this article, we will explore what custodial accounts are, how to set them up, and why they're a crucial part of planning for your child's financial future. What is a Custodial Account? A custodial account is a financial account established by an adult on behalf of a minor. There are two main types: the Uniform Transfers to Minors Act (UTMA) account and the Uniform Gifts ..read more

Article Highlights: COVID 2020 Economic Impact Payments Recovery Rebate Credit Credit Refund Is About to Expire $1,200 for Single Taxpayer and $2,400 for Married Couples plus $500 for Dependents. How To Claim the Credit if Not Previously Received Qualifications Filing Deadline for Refund is May 17, 2024 Background: In response to the economic fallout from the COVID-19 pandemic, the U.S. government enacted several measures to provide financial relief to Americans. Among these measures were the Economic Impact Payments (EIPs), also known as stimulus checks. These payments were part of broader le ..read more

In a move that could significantly shape the direction of Chicago's future housing policies, voters resoundingly rejected Mayor Brandon Johnson's proposal to impose a tax hike on real estate transactions exceeding $1 million. The 'Mansion Tax' measure, aimed at channeling funds into combating homelessness and supporting affordable housing initiatives, faced opposition from just over half of the electorate, dealing a setback to the first-term Democrat's progressive agenda. Bloomberg referred to the rejection as a 'blow' to 48-year-old Johnson. Voters' stance on this issue also highlights Johnso ..read more

Article Highlights Coverdell Education Savings Accounts Qualified State Tuition Programs (Sec 529 plans) Savings Contribution Limits Gift Tax Issues The tax code provides two primary advantageous ways of saving for your children's education. We frequently get questions about the differences between the programs and about which program is best suited for a family's particular needs. The Coverdell Education Savings Account and the Qualified Tuition Plan (frequently referred to as a Sec 529 Plan) are similar; neither provides tax-deductible contributions, but both plans' earnings are tax-free if ..read more

When it comes to managing your small business finances, establishing a consistent routine is important. This is especially true when using QuickBooks, a powerful accounting software system that can help you stay organized and make informed decisions about your finances daily. Here are five key steps you should take every time you open QuickBooks: 1. Look at the Income Tracker Start each QuickBooks session by taking a look at the Income Tracker. Located under the Customers tab, the Income Tracker provides a quick overview of the status of your receivables. With colored bars indicating various t ..read more

In a move aimed at safeguarding its markets and supporting Ukraine, the European Commission (EU) has proposed a tariff increase on grain imports from Russia and Belarus. The proposal, issued on March 22, 2024, seeks to address several pressing concerns and challenges the European Union faces. European Union President Ursula von der Leyen spoke about the necessity of the tariffs, stating, "We propose the imposition of tariffs on these Russian imports to mitigate the growing risk to our markets and our farmers." She also noted the EU's commitment to upholding global food security while supportin ..read more

Individuals have many options when they cannot pay their tax liability by the April due date, including setting up an IRS payment plan, making a payment by credit card, tapping a retirement plan, and borrowing money from a friend or relative. Each option has negative implications, and some have substantial fees, penalties and/or interest. .embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100 ..read more

Article Highlights: Noncash Charitable Contributions Establishing Donation Value Fair Market Value Documentation Requirements Appraisal Requirements Tax legislation passed in late 2017 nearly doubled the standard deduction for years 2018 through 2025, and now about 90% of individuals filing a tax return are taking advantage of the higher standard amount and are not itemizing their deductions. For the 10% of filers still itemizing, one of the most common tax-deductible charitable contributions that can be claimed is the donation of household goods and used clothing to qualified charities. The m ..read more

Article Highlights: 2020 refunds are in jeopardy Filing deadline Lost benefits Mailing instructions If you have not yet filed your 2020 federal tax return and have a refund coming, time is running out! The IRS estimates that there are about 940,000 taxpayers who have not filed their 2020 tax returns and that there is over $1 billion dollars of unclaimed refunds available for those taxpayers. If you fall in this category, you need to act quickly because the return must be filed by May 17, 2024 to claim a refund for 2020. Otherwise, the money becomes the property of the U.S. Treasury. The averag ..read more