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Tax Increase Prevention Act of 2014

By Jason Watson (Google+) Posted 12/24/2014, Email Blast Series   Great news! Last week the Tax Increase Prevention Act of 2014 was signed by POTUS, and extended several key tax deductions.   the $1 for $1 tax deduction up to $250 of expenses of elementary and secondary school teachers (the rest goes on Form 2106,…

Are Free Airplane Tickets and Frequent Flyer Miles Taxable

By Jason Watson (Google+) Posted September 22, 2014   Is anything in this life truly free? Well, at least we now know that free airline tickets and frequent flyer miles are not truly free. Got it. But, are frequent flyer miles taxable? Here are some points to consider.   If you receive reward miles or…

Electing a Late Estate Portability

By Watson CPA Group (Google+)   Estate portability allows a spouse to transfer their unused estate and gift tax exemption to their surviving spouse upon their death.   For example, let’s say that Bob and Susan are a married couple and Bob passed away in 2012. Each estate is allowed an exclusion for estate tax…

Four Expired Tax Breaks On Life Support In 2014

By Watson CPA Group (Google+)   Although we won’t know for sure until the last couple months of the year, lawmakers may revive several tax breaks that lapsed in 2013. Don’t worry- they’ll take their sweet time deciding on these!   Here are four expired breaks that will mostly likely be reinstated and available for…

7 Ways to End Expat Taxes

By Watson CPA Group (Google+) Relinquishing or Renouncing Citizenship? Does it matter? When it comes to collecting taxes, everything about your citizenship matters. Uncle Sam doesn’t stop at the borders. If you are a U.S. citizen, you are taxed on your worldwide income regardless of where you live. Siberia? North Pole? The sunny beaches of…

MyRA – The Retirement Plan Jumpstart

By Watson CPA Group (Google+)   Opportunity for all was the hallmark of President Obama’s surprise announcement of a government backed retirement savings plan. The plan is aimed to expand retirement savings opportunities for those not offered workplace retirement benefits. Officially pegged the “MyRA”, the investment vehicle offers a low cost, low risk jumpstart, to…

No Trader Tax Status for Investor Says Tax Court

By Jason Watson (Google+)   Tax rules often have many shades of grey and taxpayers who trade securities often succumb to this confusion when determining if they are a dealer, trader, or investor for tax purposes. Each are classified according to their intent, nature, and activity level, ultimately driving their tax treatment. Among the three,…

MBA Deduction Denied – Tax Court Wins Again!

By Watson CPA Group (Google+)   There are a variety of education credits and deductions that offer a myriad of tax benefits for taxpayers furthering their education. Yet there often seems to be difficulty with the law when dealing with MBA degrees; Evidenced by numerous Tax Court cases disallowing an MBA deduction as unreimbursed business…

In-Plan Roth Rollovers Offer Tax Opportunities

By Watson CPA Group (Google+)   Prior to last year’s “fiscal cliff,” or American Taxpayer Relief Act (ATRA), Roth in-plan rollovers were seized by eligibility rules. Yet, the signing of the legislation liberated the rules, significantly expanding in-plan Roth rollover opportunities for 401 (k), 403 (b), and 457 (b) government retirement plans.   Previously, in-plan…

Minister Tax Breaks Ruled Unconstitutional

By Watson CPA Group (Google+)   No guts no glory may be what U.S. District Judge Barbara Crabb was thinking when she ruled the minister housing allowance unconstitutional. Since 1921, ministers have been afforded the tax privilege of declaring part of their ministry income as a housing allowance. Yet, the Freedom From Religion Foundation contended…