Taxpayers once were able to use losses from real estate, cattle breeding, oil and gas and equipment leasing deals to offset highly taxed income. Then the government imposed “passive activity loss” rules that turned tax shelters into a dying breed. Strategy: Invest in Passive Income Generators (PIGs).
Expect correspondence audits rates to continue their downward spiral as the IRS struggles under budget cuts.
Q. We have a big job coming up and plan to hire temps. Are they treated as employees?
Are you worried about outliving your money in retirement? Here’s another option.
Should an outside worker be treated as an independent contractor or an employee? Traditionally, the courts use these seven key factors to decide.
Q. Does the change in the law for same-sex marriages apply to Social Security benefits?
At this point, it’s anybody’s guess if the Section 179 allowance will be increased this year. Small business owners can’t count on it so they might have to take regular depreciation deductions. Strategy: Buy qualified property before Oct. 1.
In a new report, the Government Accountability Office states that the IRS must improve its performance on correspondence audits.
If you were thinking ahead, you may have established a Section 529 plan to help pay college expenses of your oldest child. But now that child is out of school and you still have money left in the 529 plan account set up for the child. Strategy: Roll over any unused funds into an account for another child.
National Taxpayer Advocate Nina Olson has released her midyear report to Congress.