| Tax Advice for Newlyweds |
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| Newly married individuals should notify the Internal Revenue Service of name and address changes. A change in marital status will affect an individual's filing status. Marital status is determined on the last day of the year, so if you were married on December 31, the IRS considers you to have been married for the entire year.More... |
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| Home Mortgage Interest |
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| Most of us cannot afford to write a check for the full cost of a home. We usually go to a bank or another lender for a loan, which is called a mortgage, and we make monthly payments consisting of both principal and interest. Usually, you are entitled to deduct the entire portion of the yearly payments that is interest if you itemize deductions. If it is more advantageous for you to take a standard deduction, you will not get any additional benefit from the mortgage interest paid during the year.More... |
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| Family Partnerships |
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| Under certain circumstances, Congress permits income splitting among numerous family members to avoid higher tax brackets by the use of the "family partnership." If capital is a material income-producing factor in the business, a family member will be recognized as a partner for federal income tax purposes only if he or she acquires a genuine capital interest in a partnership through a bona fide transaction. He must actually own the partnership interest, and he must actually control it. The transfer may be accomplished by gift or by a purchase. Capital is an income-producing factor if the operation of the business requires substantial inventories or investments in buildings, machinery, or equipment. More... |
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| Due Process in IRS Collection Actions |
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| The Internal Revenue Service is now required to give taxpayers whose property might be levied upon pre-notification of the levy and an opportunity for a formal hearing and judicial review. More... |
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| Miscellaneous Itemized Deductions |
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| Although the Internal Revenue Code does not allow taxpayers to deduct certain employee expenses directly from gross income, it does permit the taxpayer to reduce adjusted gross income by treating them as itemized deductions. In deciding whether to itemize deductions, a taxpayer should determine if all of his or her itemized deductions exceed the applicable standard deduction.More... |
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