Unread Content 30 Days

Government's view of the economy could be summed up in a few short phrases: If it moves, TAX it. If it keeps moving, regulate it. And if it stops moving, subsidize it." — Ronald Reagan

Copied from Forbes: “For a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” — Winston Churchill “Income tax returns are the most imaginative fiction being written today.” — Herman Wouk “I am proud to be paying taxes in the United States. The only thing is I could be just as proud for half of the money.” — Arthur Godfrey “A liberal is someone who feels a great debt to his fellow man, which debt he proposes to pay off with your money.” — G. Gordon Liddy “The taxpayer: that’s someone who works for the federal government, but doesn’t have to take a civil service examination.” — Ronald Reagan “The income tax created more criminals than any other single act of government.” — Barry Goldwater “Collecting more taxes than is absolutely necessary is legalized robbery.” —Calvin Coolidge “This is too difficult for a mathematician. It takes a philosopher. The hardest thing in the world to understand is the income tax.” — Albert Einstein “The difference between death and taxes is death doesn’t get worse every time Congress meets.” — Will Rogers “In 1790, the nation which had fought a revolution against taxation without representation discovered that some of its citizens weren’t much happier about taxation with representation.” — Lyndon B. Johnson “Why does a slight tax increase cost you two hundred dollars and a substantial tax cut save you thirty cents?” — Peg Bracken I'm smiling but I don't feel any wealthier

I truly asked my hairdresser yesterday and she said that I was doing just fine. She is self-employed too.

Can he use up the old excess in 2025 by not contributing that amount this year? Or, does he not qualify to make any Roth contributions this year?

I think they call it the sausage making in DC. I call it Halloween - Senators go to the doors of lobbyists and hold out a bag looking for cash to be put in. The more cash the AICPA can put in the senator's candy bag, the more chance the senator will make changes to the sausage recipe. Not appealing to watch.... Tom Longview, TX

The 6% penalty applies each year the excess contribution remains in the account. The excess and associated earnings must be distributed before the penalty disappears.

Articles in both Bloomberg Tax and the Tax Foundation say the Bill closes use of the PTET deduction by SSTBs. It also restricts the use of the 199A deduction by SSTBs. As a result the AICPA is putting a major emphasis on getting the Senate to remove these changes! Are we having fun yet

It is an SNT with the standard Health, Education, Maintenance, and Support clauses from what I am told. The trust will be funded upon her death to preserve her disabled adult child's SSI benefits. Her other children will just inherit from the estate. I wanted to familiarize myself with more information on the SNT to see what expenses the trust can deduct, as well as if the trustee has to pass any income via a K-1 to the beneficiary and what that will do to his SSI reporting requirements. The client has been working with a lawyer to update the Trust documents that were created many years ago. Her other children will be the trustees. Wanted to educate myself on these types of reporting. Thanks

Is it an ABLE account or a SNT account? It can be confusing to interpret what the client is telling us. If it is a SNT, then all income is taxed to the trustee. Not a tax advantaged plan. Take a close look at what she is doing and see if it makes sense for what she is trying to accomplish. Tom Longview, TX

Was working with an elderly client on other matters, when she told me she has updated her will which includes provisions for a Special Need Trust for an older child collecting SSI and ask if I would work with her other children and or their accountants to answer any questions on her finances if need be. I will not be handling either the Estate or Trust. Wanted to do some reading on SNT's and QDT's and looking for more information? Does anyone have any recommended articles, links or recommendation for CPE courses regarding the matter? Thanks in advance

It must be. I have never heard of a Wisconsin Energy Tax Credit on taxes.

If it's any help (NOT), I saw it the same as Catherine.

Tom beat me to the RIGHT answer!

"Go to the ATX forum, idiot."

Thanks for all the comments. Looks like the "plan" won't really work. This is not "acquisition debt." Dan, I did research the (voluminous) instructions to Sch E, line 12. Lots of cross-references to other situations. I'm happy you understand it. Thanks.

Put your house in a trust Buy an SUV Move to Canada Have another child

How much of a Roth contribution did he qualify for in 2024?

But we have always done it that way with Turbo-Tax. Depreciation, what is that?

She should check with her fiduciary who already knows the answer to this question.

What's the standard deduction for Charity? ...for __________? TikTok But my co-worker's refund is bigger! I'm self-employed; how much will I owe? How big is my refund? Ltr CP2000

Ask your hairdresser Tom Longview, TX

Definitely "SALY!" Definitely "it depends" We need a big "maybe" on there. When in doubt "extend". and "Sharpen the pencil" In this town lately we could also have "create an LLC"

The Taxpayer has created an LLC and will be taxed as a S-corp. I believe she will need to create a new plan with the new ID. Or can she amend the one she has? And - or - would this be eligible for credits as a new plan?

How much is reasonable? What do most people take?

SALY Facts & Circumstances Usual & Necessary There's a Form for that Acronym of the Day