Weekly Tax Brief

Documentation is the key to business expense deductions

Details: Published: 15 September 2016 15 September 2016

If you have incomplete or missing records and get audited by the IRS, your business will likely lose out on valuable deductions. Here are two recent U.S. Tax Court cases that help illustrate the rules for documenting deductions.

Tax impact of investor vs. trader status

Details: Published: 07 September 2016 07 September 2016

If you invest, whether you’re considered an investor or a trader can have a significant impact on your tax bill. Do you know the difference?

Are frequent flyer miles ever taxable?

Details: Published: 30 August 2016 30 August 2016

If you recently redeemed frequent flyer miles to treat the family to a fun summer vacation or to take your spouse on a romantic getaway, you might assume that there are no tax implications involved. And you’re probably right — but there is a chance your miles could be taxable.

3 strategies for tax-smart giving

Details: Published: 15 August 2016 15 August 2016

Giving away assets during your life will help reduce the size of your taxable estate, which is beneficial if you have a large estate that could be subject to estate taxes. For 2016, the lifetime gift and estate tax exemption is $5.45 million (twice that for married couples with proper estate planning strategies in place).

Don’t roll the dice with your taxes if you gamble this year

Details: Published: 04 August 2016 04 August 2016

For anyone who takes a spin at roulette, cries out “Bingo!” or engages in other wagering activities, it’s important to be familiar with the applicable tax rules. Otherwise, you could be putting yourself at risk for interest or penalties — or missing out on tax-saving opportunities.

Should you make a “charitable IRA rollover” in 2016?

Details: Published: 26 July 2016 26 July 2016

Last year a break valued by many charitably inclined retirees was made permanent: the charitable IRA rollover. If you’re age 70½ or older, you can make direct contributions — up to $100,000 annually — from your IRA to qualified charitable organizations without owing any income tax on the distributions.

To deduct business losses, you may have to prove “material participation”

Details: Published: 22 July 2016 22 July 2016

You can only deduct losses from an S corporation, partnership or LLC if you “materially participate” in the business. If you don’t, your losses are generally “passive” and can only be used to offset income from other passive activities. Any excess passive loss is suspended and must be carried forward to future years.

There’s still time for homeowners to save with green tax credits

Details: Published: 20 July 2016 20 July 2016

The income tax credit for certain energy-efficient home improvements and equipment purchases was extended through 2016 by the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act). So, you still have time to save both energy and taxes by making these eco-friendly investments.

3 mutual fund tax hazards to watch out for

Details: Published: 11 July 2016 11 July 2016

Investing in mutual funds is an easy way to diversify a portfolio, which is one reason why they’re commonly found in retirement plans such as IRAs and 401(k)s. But if you hold such funds in taxable accounts, or are considering such investments, beware of these three tax hazards:

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Awards of RSUs can provide tax deferral opportunity

Details: Published: 30 June 2016 30 June 2016

Executives and other key employees are often compensated with more than just salary, fringe benefits and bonuses: They may also be awarded stock-based compensation, such as restricted stock or stock options. Another form that’s becoming more common is restricted stock units (RSUs). If RSUs are part of your compensation package, be sure you understand the tax consequences — and a valuable tax deferral opportunity.

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