Income in Respect of a Decedent (IRD) When a taxpayer dies, certain income they were entitled to but had not yet received is known as Income in Respect of a Decedent (IRD). Due to accounting rules, this income isn’t reported on the decedent’s final tax return but is still taxable. Key Points: Definition: IRD includes… Read More

Transfers of Property Incident to Divorce In general, no gain or loss is recognized when property is transferred between spouses or between former spouses if the transfer is incident to divorce. When this nonrecognition rule applies, the receiving spouse (transferee) is treated as acquiring the property by gift. As a result, the transferee’s basis in… Read More

Federal Tax Treatment of Same-Sex Marriage 1. Joint Tax Returns for Married Couples Under IRC §6013, married couples may file joint federal income tax returns. Marital status is generally determined by state law where the couple resides. 2. Defense of Marriage Act (DOMA) DOMA (1996) defined “marriage” and “spouse” as relationships between men and women… Read More

Interim Final Rule – Beneficial Ownership Reporting, 03/26/2025 The Financial Crimes Enforcement Network (FinCEN) has issued an interim final rule under the Corporate Transparency Act, narrowing the scope of reporting requirements for beneficial ownership information (BOI). Under this rule, only entities previously classified as “foreign reporting companies” must report BOI. Entities previously defined as “domestic… Read More

August 2024 Tax Guide to Deducting Long-Term Care Insurance Premiums Long-term care costs can be substantial, and neither Medicare nor Medicaid provide comprehensive coverage for most people. Long-term care insurance can help protect your finances, and there may be ways to deduct the premiums, depending on your business structure. Here are four key points to…… Read More

You may have heard you cannot claim a home-office deduction without business income. That’s not accurate. Points to Consider • Claim business deductions with no business income. Even if your business did not generate income this year, you should claim all business deductions. Such deductions might create a net operating loss, which would carry forward…… Read More

When you own and operate a business, you must exercise vigilant oversight, including watching over your payroll taxes. Here’s an example of why. Rodney Taylor entrusted his corporation’s accounting and bookkeeping to Robert Gard, CPA. Over several years, Mr. Gard embezzled between $1 million and $2 million, including payroll taxes. Despite Mr. Gard’s wrongdoing, the…… Read More

On January 1, 2024, the Corporate Transparency Act (CTA) was enacted. The CTA requires most smaller corporations, most limited liability companies, and other business entities to file a beneficial ownership information (BOI) report with the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN). The BOI report identifies and provides contact information for the…… Read More

If you are a U.S. citizen living and working abroad, you face potential tax implications. The United States has a taxation system that requires its citizens to report and potentially pay taxes on their worldwide income. In other words, as a U.S. citizen, you remain subject to U.S. tax obligations, even when living abroad. Overview… Read More

Using a Vacation Home as a Rental Property and for Personal Use When you use a home for both rental and personal use, regardless of that home’s location at the beach or in the city, you run into the tax code’s vacation home rules that make that home either a residence or a rental property.… Read More