The IRS has taken a new official position on the applicability of the Church Audit Protection Act, and it is good news for churches. The Church Audit Protection Act (Code Section 7611 of the Internal Revenue Code) specifies that the IRS cannot initiate a church tax inquiry or examination unless certain criteria are met. In…
On 1/28/16, the Senate Finance Committee held a hearing on –Helping Americans Prepare for Retirement: Increasing Access, Participation and Coverage in Retirement Savings Plans. This isn’t the first time for this topic. There were a few hearings on this in 2014. I’m not sure if anything is driving the renewed attention to this topic now. …
Acquisition Debt Equity Debt Tracing Excess Debt Unsecured Election One of the current IRS audit initiatives is checking to see if taxpayers are deducting too much home equity debt interest. Generally, taxpayers are allowed to deduct the interest on up to $1 million of home acquisition debt (includes subsequent debt incurred to make improvements, but…
For tax purposes, alimony is a payment to a spouse or former spouse under a divorce or separation agreement. It does not included voluntary payments outside the scope of the agreement. The payer may deduct alimony, and it is taxable income to the recipient. There are nine requirements that must be met for the payments…
1. Earned income (EITC). Taxpayers with no children it is $503, with one child $3,359, two qualifying children $5,548, three qualifying children $6,342 but are subject to AGI phaseouts. The recent tax law makes permanent the increase of $5,000 in the phaseout amount for joint filers scheduled to expire after 2017. The law also makes…
Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car, van, pickup or panel truck are: 54 cents per mile for business miles driven, down from 57.5 cents for 2015 19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015 14 cents per mile…
If you operate a business and engage the services of an individual (independent contractor) other than one who meets the definition of an employee and you pay him or her $600 or more for the calendar year, you are required to issue him or her a Form 1099 at the end of the year to…
When it comes to the IRS and religious organizations, these organizations fall into two categories – churches and other religious organizations. Due to the First Amendment, the IRS is extremely reluctant to tread in the area of church organizations. This is not to say that churches have carte blanche to ignore the tax laws, but…
I am getting to be an old man now and so profoundly thankful that the lessons of tax-free compounding were impressed upon me at an early age. It has made a huge difference in my financial well being and subsequent happiness. You too can use the power of tax-free compounding to increase retirement savings. We…
To be eligible for the Premium Tax Credit under the Affordable Care Act, all of the following must apply: • Your income must be between 100% and 400% of Federal Poverty Line (see below) for a given family size. • You cannot be claimed as a dependent. • If married, you must file a joint…
