Taxes
Beware the Accumulated Earnings Tax
The accumulated earnings tax must be paid in addition to the regular corporate income tax. Despite recent threats by Congress to raise the ante, this penalty tax remains at the 20% rate.
Ken Berry, JD
CPA Practice Advisor Tax Correspondent
Ken Berry, Esq., is a nationally-known writer and editor specializing in tax and financial planning matters. During a career of more than 35 years, he has served as managing editor of a publisher of content-based marketing tools and vice president of an online continuing education company in the financial services industry. As a freelance writer, Ken has authored thousands of articles for a wide variety of newsletters, magazines and other periodicals, emphasizing a sense of wit and clarity.
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Taxes
Tax Court Case Shows IRS Effort to Revoke Passports for Tax Debt
Under the 2015 Fixing America’s Surface Transportation (FAST) Act, the IRS can deny, revoke or limit a passport if you have a seriously delinquent tax debt.
Taxes
Four Income Tax Breaks for New Parents
You just welcomed a new bundle of joy into the world. But once the euphoria has worn off, you’ll start to realize—if you haven’t already—that kids are expensive.
Taxes
Trust In Irrevocable Life Insurance Trusts
Many limitations have been placed on traditional tax shelters over time, but the benefits of “irrevocable life insurance trusts” (ILITs) remain intact.
Taxes
Tax Pointers on Mortgage Points
Points paid on a new mortgage are fully deductible if you meet certain tax law requirements. Notably, the acquisition debt must be secured by your principal residence and ...
Taxes
The Tax Blotter - August 3, 2023
Under current law, net operating losses (NOLs) can no longer be carried back for two years, but they may be carried forward indefinitely.
Taxes
The Tax Payoff for Life Insurance
Although Congress has chipped away at many traditional tax shelters in recent years, the main benefits of life insurance remain intact.
Taxes
Pros and Cons of the "Kiddie Tax"
If you’re not careful, this often-misunderstood tax provision can result in a sizeable income tax liability for the family.
Taxes
Tax Issues When Selling a House After a Divorce
What are the tax consequences regarding a home sale if you and your spouse split up or divorce?
Taxes
Taxpayers Warned About Frivolous Tax Claims
A frivolous claim is one that is used to support an unreasonable entry on your returns or the failure to file a return. Numerous such claims have been shot down by the IRS, as well as the courts, in recent years.
Taxes
Hosting an Exchange Student Can Earn a Tax Break
Qualified deductible expenses include the cost of books, tuition, food, clothing, transportation, medical and dental care, entertainment and other amounts actually spent for the student's well being.
Benefits
How to Realize Tax Rewards with Sec. 1244 Stock
Be aware, however, that this special tax treatment isn’t automatic. To qualify for Section 1244 treatment, the following four main requirements must be met.