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Personal Tax

22 / 09 / 2015 by Greg Freyman, CPA in Personal Tax

Deceased Spouse’s Carryforward Capital Losses

Question:
My now deceased spouse owned several investments that were sold during the year prior to her passing at substantial capital losses. Can those carryforward capital losses be applied to my tax return or are they lost?

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28 / 08 / 2015 by Greg Freyman, CPA in Personal Tax

Estimated Personal Taxes Are Due On Sept. 15th

Estimated personal taxes for the 3rd payment of the 2015 tax year are due on September 15th.  This also applies at the state and local level. These taxes must be paid by the due date to avoid interest & penalties. Below are the specific details.

 

Requirement: Make a payment for your estimated tax for the current year if you are not paying your income tax through withholding as part of payroll. This includes self-employment income, interest, dividends, alimony, rent, gains from the sale of assets, prizes and awards.

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24 / 08 / 2015 by Greg Freyman, CPA in Personal Tax

How To Depreciate Foreign Rental Property

Question:
We purchased personal use foreign property in July 2012 for $300,000. On 1/1/14, the property was converted to rental use. It was rented out for three months in 2014. For purposes of setting up this rental property to calculate depreciation, should I use the exchange rate as of July 2012 or 1/1/14? Also, can you confirm that foreign rental property should be using ADS depreciation method with mid-month convention.

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07 / 08 / 2015 by Greg Freyman, CPA in Personal Tax

Can I Deduct Fertility Treatments As A Medical Expense?

Question:
We are married and earn about $300,000 per year. My wife is trying to become pregnant and we have already spent $24,000 in fertility treatment. Now we are considering using donor eggs which will cost an additional $42,000 Thus $66,000 in expense in 2015 or we can break it up to $24k this year and $42k next year. Is this type of expense deductible as a “medical expense?” Secondly, would the use of a FSA or HSA have been wise? Third, would it benefit to wait until 2016 to do this procedure and use a HSA or FSA? Fourth, assuming that we would receive some benefit by waiting until 2016, can they have the procedure done now and pay later to move the expense to 2016.

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29 / 07 / 2015 by Greg Freyman, CPA in Personal Tax

How Can We Pay No Capital Gains Tax?

Question:
I’m 52 years old and my spouse is 42 and we have $100,000 in annual income. We have a $120,000 in publicly traded stock that we would like to sell that have been held over 1 year. If we sold it all today, our capital gain would be $96,000. If they maxed out their 401(k) and 403(b) then we could put away $42,000. How else can we minimize our capital gains tax exposure here?

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14 / 07 / 2015 by Greg Freyman, CPA in Personal Tax

Should I Exercise My Stock Options?

Question:
I have some stock options and I’m trying to figure out the best plan of action in exercising.

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21 / 06 / 2015 by Greg Freyman, CPA in Personal Tax

Do Children Need To File FBAR Forms?

Question:
My entire family moved from a foreign country to US during 2014. I have two children. They each had foreign accounts exceeding $10,000 during the year. One child left funds in a foreign account. The other child brought all the money to the US, so closed the account in Belgium and opened in the US. Do they need to file the FBAR forms?

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How Long Should You Save Receipts For Taxes?

Technically, it does not hurt to save every single receipt and there are tools available to easily convert hard copies to digital. However, that doesn’t mean you need to save receipts for taxes in every instance.

 

Should I save my receipts?

The answer is yes if you need to justify an expense on your tax return. However, those that file a simple tax return and elect the standard deduction usually do not need to save their receipts for everyday purchases. Typically, you will not need a receipt for groceries as that’s not an item you can itemize on your tax return, unless sales tax is involved. It’s a different story for receipts related to charitable donations and mortgage interest payments as that can generally be claimed on your tax return.

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08 / 06 / 2015 by Greg Freyman, CPA in Personal Tax

Am I a New York State Resident For Taxes?

Question:
If I am physically present in New York for less than 183 days, am I still a statutory full-time New York State resident?

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02 / 06 / 2015 by Greg Freyman, CPA in Personal Tax

Are Life Insurance Proceeds Taxable?

Question:
My father passed away last year, leaving me some assets which includes his life insurance proceeds. Is this a taxable event to me?

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