Suppose you converted funds in a traditional IRA to a Roth IRA last year, but now you realize that you made a mistake. Strategy: Undo the Roth conversion. The IRS allows you to “recharacterize” a Roth back into a traditional IRA as long as you meet the timing requirements.
Despite the broad reach of the “kiddie tax,” income-splitting with family members is still a good tax idea for wealthy individuals.
Travel and entertainment deductions remain a top audit target because this area is considered ripe for abuse by taxpayers.
Q. If I donate blood to a nonprofit, can I take a charitable deduction for its value?
In a recent posting, the IRS announced several improvements to its offer-in-compromise program, including revisions to Form 656 and related documents.
Suppose you and your spouse attend a fundraising dinner for your favorite charity. The dinner cost you $100 each for a total of $200. But you can’t deduct any charitable donation to the extent you receive a benefit in return. The tax law calls them “quid pro quo contributions.” Strategy: Obtain a written statement from the charity.
Q. A family member won an SUV in a lottery. If we sell it right away, do we owe any tax?
As with certain other tax law provisions, another extension of the “charitable rollover” remains in doubt for the 2014 tax year. But you don’t have to wait around for Congress. Take matters into your own hands.
According to a new IRS information letter, college athletes who are treated as employees under federal labor law won’t be taxed on scholarships.
Are you planning to renovate an older building in a historic area? Before you start tearing down the walls, cash in on a unique tax break from your Uncle Sam.