The caregiver role is always a difficult one.  For most people, given today’s busy lifestyles, managing one’s own finances adequately is a major chore fraught with confusion about investments, budget issues and tax consequences.  Now, with an ill family member, we tack on the burden of needing to step into someone else’s shoes and manage… Read More

Obtain Death Certificates Contact Attorney who set up wills/ trusts, your Financial Planner and your tax preparer. Your Attorney will determine if an estate needs to be set up for the deceased spouse; Your Financial Planner should work as a team with the attorney to make any necessary transfers and changes and your tax preparer… Read More

Beginning with 2018 tax returns, you can claim a $500 non-refundable credit for each eligible dependent for whom the child tax credit cannot be claimed. It is figured on the same worksheet (Child Tax Credit and Credit for Other Dependents Worksheet). This is the list of those that might be eligible for this new credit:… Read More

There are several changes that this new legislation has made: Secure permits a qualified retirement plan to be created up to the extended due date of tax returns effective beginning in 2020. Previously, IRA’s and other plans had a deadline of April 15 leaving the Simplified Employee Pension as the only option available until the… Read More

Your deduction for gifts to business customers and clients is limited to $25 per person per year. You and your spouse are treated as one person in figuring this limitation even if you do not file a joint return and even if you have separate business connections with the recipient. The $25 deduction also applies… Read More

The following expenses are deductible from rental income on Schedule E of Form 1040 Real Estate taxes and mortgage interest paid on behalf of your rental property Construction period interest and taxes: typically, these need to be depreciated and capitalized Depreciation of the building being rented. Land value is not subject to depreciation. You begin… Read More

A wash sale is one where you sell a security to take a loss and then buy it back in less than 30 days.  Your loss deduction is barred if within 30 days of the sale you buy substantially identical stock or securities, you purchase a “call” option on such securities, or you sell a… Read More

If you have a small passthrough business (Sole proprietor, LLC, or Sub S) and have a profit from  2019 on, you may be eligible for a personal deduction of up to 20% of that profit. The rules for this are very complicated and should not be tackled on your own without intense personal study of… Read More

For all divorce agreements signed January 1, 2019 and later, payments made as alimony to the ex-spouse are no longer deductible and the payments are no longer considered income to the recipient. This includes money spent on behalf of your ex for health insurance benefits. If you amend a prior agreement there needs to be… Read More

If you know that you have been scammed and that your personal information has been compromised, first file a complaint with the local police, fraud division and then tell the IRS.  You will need to file Form 14039: Identity Theft Affidavit. You can find this form on the IRS website: This will mark your… Read More