Should I Itemize Or Claim The Standard Deduction?

The obvious answer is that if your itemized expenses exceed the standard deduction, you should itemize. That being said, if you don’t have the actual receipts and supporting documentation to justify claiming those expenses, then you run the risk of losing those deductions as a result of an audit, which can be costly from an […]

Tax Breaks For Retirees

Many existing or soon to be retirees should pay careful attention to the tax breaks that are available to them. As most of us know, when you’re on a fixed budget, every dollar counts. So, what are some of the tax breaks for retirees? Vitamins/Nutritional Supplements This can be overlooked as many elderly taxpayers may […]

Did You Recently Inherit An IRA?

If you did inherit an IRA account from a deceased relative that was under the age of 70 1/2, you’ll be prompted to elect a distribution option. The options are to take a lump-sum distribution, open an inherited IRA based on the life expectancy method or open an inherited IRA based on the 5 year […]

How Do Roth 401(K) Plans Work?

If your company offers a 401(K) plan to your employees, some of them may inquire about treating the contributions as Roth contributions. This is how you can be prepared to answer their questions about Roth 401(k) contributions. What is a Roth 401(k)? This type of employer-provided retirement account allows the employee to designate Roth contributions […]

Are Condo Common Area Expenses Deductible?

A condominium is different from a house in many respects. For instance, condos typically do not have a yard or basement. Instead, condo owners share land, lobbies, elevators, stairs, pools, and other service areas. As such, owners generally pay dues or assessments to a special corporation that is organized to manage the common areas. Are […]

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? Answer: If we reference private letter ruling (PLR) 8510053, Revenue Ruling 74-175, and Regulation 1.1212-1(c), a capital loss […]

Freyman CPA On The Foreign Account Tax Compliance Act

We recently spoke with Bianca Wright of Nearshore Americas to discuss how best to navigate the murky waters of the Foreign Account Tax Compliance Act (FATCA). As you may be aware, U.S businesses and individuals transacting overseas need to adhere to the requirements and regulations imposed by the Act. Below is an excerpt from the […]

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 […]