Status Quo for Federal Reserve
In a statement made this week regarding the Fed’s bond buying program, it was revealed that at this time they will continue to implement this program for at least another month. It was thought that the Fed would begin tapering this program beginning in September, which sent bond yields and mortgage rates soaring. After the…
Start planning now if you’d like to deduct medical expenses
Medical expenses that aren’t reimbursable by insurance or paid through a tax-advantaged account (such as a Health Savings Account or Flexible Spending Account) may be deductible — but only to the extent that they exceed 10% of your adjusted gross income. Before 2013, the floor was only 7.5% for regular tax purposes. (Taxpayers age 65…
3 Reasons You Shouldn’t Touch that Retirement Fund
One of the best pieces of financial advice ever given is to build up an emergency fund in the event something unexpected happens and you need some fast cash. Unfortunately, not everyone prepares such a fund and is therefore stuck looking for other sources of income when the unexpected hits. One such fund that tempts…
IRS makes more same-sex couples eligible for federal tax treatment as a married couple
In response to the U.S. Supreme Court’s June decision regarding same-sex marriage, the IRS recently clarified that married same-sex couples will be treated as married for all federal tax provisions in which marriage is a factor, such as filing status, dependent exemptions and child credits, and gift and estate tax breaks. Significantly, the Supreme Court…
3 Common Money Mistakes to Avoid
While we’ve all been given personal finance advice, few actually end up doing anything with it. Instead they incur debt by taking out loans, making excessive purchases or having to front unexpected bills. The more you know, the better able you are to avoid these actions that hurt your credit score, savings account and overall…
Owners of leasehold, restaurant and retail properties must act soon to enjoy extended depreciation-r
In January, Congress extended some depreciation-related tax breaks that can benefit owners of leasehold, restaurant and retail properties: 50% bonus depreciation. Congress extended this additional first-year depreciation allowance to qualifying leasehold improvements made in 2013. Section 179 expensing. Congress revived through 2013 the election to deduct under Sec. 179 (rather than depreciate over a number…
Information Regarding the Affordable Care Act’s Individual Mandate
As you may be aware, the employer mandate under the 2010 Affordable Care Act was delayed last month until January 2015. However, the individual mandate is still scheduled to take effect starting in 2014. On Tuesday, August 27, the Obama administration released final rules regarding the individual mandate that requires individuals to purchase health insurance…
You can still use ESA funds to pay elementary and secondary school costs
As the kids head back to school, it’s a good time to think about Coverdell Education Savings Accounts (ESAs). One major advantage of ESAs over another popular education saving tool, the Section 529 plan, is that tax-free ESA distributions aren’t limited to college expenses; they also can fund elementary and secondary school costs. That means…