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Why do partners sometimes report more income on tax returns than they receive in cash?
- Sep 14, 2020
- By Dukhon Tax
- In Tax Planning, Tax Tips
If you’re a partner in a business, you may have come across a situation that gave you pause. In a given year, you may be taxed on more partnership income than was distributed to you from the partnership in which you’re a partner. Why is this? The answer lies in the way partnerships and partners are taxed. Unlike regular corporations,…
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If you’re selling your home, don’t forget about taxes
- Jun 19, 2020
- By Dukhon Tax
- In Tax Planning, Tax Tips
Traditionally, spring and summer are popular times for selling a home. Unfortunately, the COVID-19 crisis has resulted in a slowdown in sales. The National Association of Realtors (NAR) reports that existing home sales in April decreased year-over-year, 17.2% from a year ago. One bit of good news is that home prices are up. The median existing-home price in April was…
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Seniors: Can you deduct Medicare premiums?
- Jun 12, 2020
- By Dukhon Tax
- In Tax Planning
If you’re age 65 and older, and you have basic Medicare insurance, you may need to pay additional premiums to get the level of coverage you want. The premiums can be costly, especially if you’re married and both you and your spouse are paying them. But there may be a silver lining: You may qualify for a tax break for…
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A nonworking spouse can still have an IRA
- Jun 08, 2020
- By Dukhon Tax
- In Tax Planning, Tax Tips
It’s often difficult for married couples to save as much as they need for retirement when one spouse doesn’t work outside the home — perhaps so that spouse can take care of children or elderly parents. In general, an IRA contribution is allowed only if a taxpayer has compensation. However, an exception involves a “spousal” IRA. It allows a contribution…
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Student loan interest: Can you deduct it on your tax return?
- Jun 03, 2020
- By Dukhon Tax
- In Student Taxes, Tax Planning, Tax Tips
The economic impact of the novel coronavirus (COVID-19) is unprecedented and many taxpayers with student loans have been hard hit. The Coronavirus Aid, Relief and Economic Security (CARES) Act contains some assistance to borrowers with federal student loans. Notably, federal loans were automatically placed in an administrative forbearance, which allows borrowers to temporarily stop making monthly payments. This payment suspension…
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Landlords need to include these rental-related payments in their gross income.
- Jan 17, 2020
- By Dukhon Tax
- In Business, Impact on Taxes, Income Tax, Tax Advice, Tax Advisor, Tax Planning
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Help protect your personal information by filing your 2019 tax return early
- Jan 16, 2020
- By Dukhon Tax
- In Income Tax, Tax Advice, Tax Advisor, Tax Deductions, Tax Planning, Tax Tips
The IRS announced it is opening the 2019 individual income tax return filing season on January 27. Even if you typically don’t file until much closer to the April 15 deadline (or you file for an extension), consider filing as soon as you can this year. The reason: You can potentially protect yourself from tax identity theft — and you…
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New rules will soon require employers to annually disclose retirement income to employees
- Jan 15, 2020
- By Dukhon Tax
- In Business, Business Taxes, Retirement, Tax Advice, Tax Advisor, Tax Planning, Tax Tips
As you’ve probably heard, a new law was recently passed with a wide range of retirement plan changes for employers and individuals. One of the provisions of the SECURE Act involves a new requirement for employers that sponsor tax-favored defined contribution retirement plans that are subject to ERISA. Specifically, the law will require that the benefit statements sent to plan…
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Tax Developments: Summary of the 2019 SECURE Act provisions affecting business and individual taxpayers
- Jan 13, 2020
- By Dukhon Tax
- In Business, Business Taxes, Retirement, Tax Advice, Tax Advisor, Tax Planning, Tax Tips
On December 20, 2019, the SECURE Act, a new tax law included as part of the Further Consolidated Appropriations Act of 2020, was enacted. The “Setting Every Community Up for Retirement Enhancement” (SECURE) Act expands the ability for individuals to maximize their savings and makes simplifications to the qualified retirement system. This article outlines specific provisions of the act in…
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New law helps businesses make their employees’ retirement secure
- Jan 13, 2020
- By Dukhon Tax
- In Business, Business Taxes, Income Tax, Retirement, Tax Planning, Tax Tips
A significant law was recently passed that adds tax breaks and makes changes to employer-provided retirement plans. If your small business has a current plan for employees or if you’re thinking about adding one, you should familiarize yourself with the new rules. The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) was signed into law on December 20,…