Harless Tax Blog
For those who cannot qualify for insurance, an annuity with an attached LTC or “confinement care” rider might make the most sense. The latter is similar to the chronic-care option. A fixed indexed annuity with an income rider that can also be used for confinement care will double the contractual income guarantee when the confinement care is triggered. That happens whenever the insured person can no longer do two of six activities done in daily living—bathing, dressing, toileting, continence, feeding and transferring out of or into bed. See More
There is a scandal going on at the Internal Revenue Service, but it has nothing to do with Lois Lerner or her missing emails. House Republicans have not given up on their noisy crusade to tie Ms. Lerner to what they imagine to be widespread political corruption within the Obama administration, but all they have proved is that the I.R.S. is no better at backing up its computer files than most other government agencies. [Source:NYTimes.com See More
Are inherited IRAs protected from bankruptcy creditors? Earlier this month, the U.S. Supreme Court said no. (Clark v. Rameker, 6/12/14.) [Source: Investors Business Daily]
So IRA owners may want to reconsider their beneficiary designations. Despite the added cost and complexity, leaving your IRA to a trust can be a safe move.
To grasp the issue, consider a hypothetical Art Young, who has a sizable IRA. If Young files for bankruptcy, that account likely will be beyond creditors' reach. See More
When an individual receives a Schedule K-1 from a partnership reflecting a loss, there are several things to consider before deciding if the loss can be deducted. In order to determine deductibility, a partner's basis and at risk limitations need to be evaluated. See original Article here from Accounting Today> See More
Nearly half the tax returns on which individuals claimed tax deductions for alimony payments did not match up with their former spouse’s tax returns, showing a total “alimony gap” of over $2.3 billion in 2010, according to a new government report. by J. Russell George See Original Article here from Accounting Today >
The report, from the Treasury Inspector General for Tax Administration, found 266,190 tax returns for 2010 in which individuals claimed alimony deductions for which income was not reported on a corresponding recipient’s tax return, or the amount of alimony income that was reported did not agree with the amount of the deduction taken. The 266,190 returns represented approximately 47 percent of all tax returns on which alimony deductions were claimed. In tax year 2010, 567,887 taxpayers claimed alimony deductions totaling more than $10 billion. See More
The Internal Revenue Service anticipates that nearly 5 million taxpayers will amend their returns by filing Form 1040X this year. [source: AccountingToday.com]
Nearly 46 million returns were electronically filed from home computers as of April 18, more than the total from home computers for all of 2013. The IRS said Friday that it has received more than 131 million tax returns, of which 88 percent were e-filed.
Taxpayers who need to amend their returns should file this form only after filing the original return, the IRS noted. Generally, for a tax credit or refund, taxpayers must file Form 1040X within three years, including extensions, after the date they filed their original return or within two years after the date they paid the tax, whichever is later. For most people, this means that returns for tax-year 2011 or later can still be amended. See More
Harless & Associates is pleased to announce the appointment of Donna Holm, CPA, MST to Director of Tax for the West Palm Beach offices serving all of South Florida. Holm joined Harless & Associates less than one year ago as an Associate. See More