Tax Issues That Arise When Converting a Home into a Rental

Jon Weaver Tax Information

Article Highlights: Reason for Conversion Basis Depreciation Cash Flow versus Tax Profit or Loss Passive Losses Home Gain Exclusion There are many reasons to convert a home into a rental, such as to ensure that a prior home produces income and appreciation after the owner buys a new home; to maximize the tax benefits for an elderly person who can …

Haven’t Filed Past Returns? IRS May File One for You and It Won’t Be Pretty

Jon Weaver Tax Information

Article Highlights: Non-Filers IRS Information Reporting IRS Prepared Substitute Return Notice of Deficiency Tax Court Appeal Liens and Levies There are millions of individuals who do not file a tax return each year, many of them simply because their income is below the filing threshold levels for the year based upon their filing status. Still others simply procrastinate and risk …

Health Savings Account (HSA)

Jon Weaver Tax Information

Looking to shield some of your hard-earned money from income taxes? You should definitely consider funding a Health Savings Account (HSA). You deposit a portion of your wages into the HSA and get a tax write-off for the deposit. The money held in the HSA is typically invested in stocks, bonds and mutual funds. The investments grow tax deferred and …

Tax Effects of a Business Making a Charitable Contribution

Jon Weaver Tax Information

Article Highlights: Charitable Contributions Business-Related Charitable Contributions Charitable Pass-Through Deductions 20% Business Pass-Through Deduction   Charitable contributions are generally allowed as part of an individual’s itemized deductions on his or her income tax return, while a business expense deduction generally isn’t allowable for a contribution made to a charitable organization. However, the IRS recently issued proposed regulations saying that if …

Capital Gains Tax Rates

Jon Weaver Tax Information

Taxpayers are subject to a wide variety of tax rates. Common examples include income, sales, property and capital gains. This blog focuses on capital gains tax rates. There are two different time frames involved with capital gains: short term and long term. Short term applies to assets held for one year or less. The rate is the same as your …

Do I Have to File a Tax Return?

Jon Weaver Tax Information

Do I Have to File a Tax Return? Article Highlights: When You Are Required to File Self-Employed Taxpayers Filing Thresholds Benefits of Filing Even When Not Required to File Refundable Tax Credits This is a question many taxpayers ask during this time of year, and the question is far more complicated than people believe. To fully understand, we need to …

IRS Letters: Tax Scam or Something You Need to Address?

Jon Weaver Tax Information

Your taxes contain an array of sensitive information, from financial data to your Social Security number or tax ID number. Because of this, there are many scams that unsavory characters attempt to perpetrate by impersonating the IRS or another tax authority. It can be difficult to tell when the IRS is really seeking information versus when you may be the …

Congress Does Away with the Stretch IRA

Jon Weaver Tax Information

Article Highlights: Taxability of Distributions Stretching Distributions SECURE Act Changes Ten-Year Rule Spouse Exception Other Exceptions Naming Beneficiaries On December 20, 2019, President Trump signed into law the Appropriations Act of 2020, which included a number of tax law changes, including extending certain tax provisions that expired after 2017 or were about to expire, a number of retirement and IRA …

Running Low on Money? Congress Has Made it Easier for You to Tap Your Retirement Savings

Jon Weaver Tax Information

Article Highlights: COVID-19 Tax Benefits Retirement Plan Withdrawals Waiver of 10% Early Withdrawal Penalty Retirement Plan Loans Roth IRAs Other Sources of Income Way to Reduce Payments If you are struggling financially due to the COVID-19 epidemic, you will be happy to know Congress, as part of the CARES Act enacted on March 27, has made it easier for you …