Welcome to this month's edition of the Tax and Business Alert. Our goal is to provide
you with current articles on various tax and business topics. The articles are
intended to keep you up to date on trends and issues that may impact your business
and personal financial affairs. Please contact us if you have questions about any of
the issues discussed.
CONVERTING A RESIDENCE TO RENTAL PROPERTY
Recovering real estate values may cause some homeowners to consider converting their
personal residence to rental property for investment purposes. But this decision is
complex, and its ramifications are far-reaching. This article examines the economic
factors that need to be considered.
RETIREMENT PLAN REVIEW
Retirement plan savings (e.g., qualified plans and IRAs) are important to one's
financial well-being for many reasons. They allow one to accumulate income without
currently paying tax, and the power of compounding pretax dollars makes a retirement
plan one of the most powerful investment vehicles available. Therefore, it is
important to do everything possible to get the most out of one of the best investment
opportunities available. This article lists information to consider when conducting a
review of retirement plans.
COVERDELL EDUCATION SAVINGS ACCOUNTS
The Coverdell Education Savings Account (ESA) was created as an incentive to help
parents and students save for education expenses. This article looks at its benefits
MAKING YOUR HOBBY A BUSINESS
Taxpayers often invest a great deal of time and money in their hobby, and some
eventually make it a full- or part-time business activity. It's not a problem as long
as the new business turns a profit. And it may be fine as well if the business
produces a loss and the taxpayer enjoys the activity - even better if the loss can
offset other income. However, if the business consistently generates losses, the IRS
could determine that these losses are actually nondeductible hobby losses. This
article discusses two ways to avoid the hobby loss rules.
SOCIAL SECURITY UPDATE
This article provides the 2014 inflation adjustments that have been announced for the
various Social Security amounts and thresholds.
TAXPAYER PENALIZED FOR WASTING COURT'S TIME
This brief article describes how a taxpayer who claimed he had no taxable income was
not only disputed by the Tax Court, but was assessed fines for wasting its time.
This publication is distributed with the understanding that the author, publisher and
distributor are not rendering legal, accounting or other professional advice or
opinions on specific facts or matters, and, accordingly, assume no liability
whatsoever in connection with its use. The information contained in this newsletter
was not intended or written to be used and cannot be used for the purpose of (1)
avoiding tax-related penalties prescribed by the Internal Revenue Code or (2)
promoting or marketing any tax-related matter addressed herein. © 2014