Posts by Peter Malutta

IRS Issues Standard Mileage Rates For 2019 According to a statement from the IRS, starting in 2019, the standard mileage rates for the use of a car (also vans, pickups…

401(k) and IRA Contribution Limits Increase The IRS has announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2019. The contribution…

× The 2018 Tax Wrap-Up The tax reform passed at the end of 2017 runs to about 70,000 words. It's a large and complicated piece of legislation, and we can…

From 401(k) plans to individual retirement accounts to Social Security, the federal government has been busy in recent weeks adjusting numbers for 2018. Whether you're an employee or business owner,…

Those pictures you see from Hurricanes Harvey and Irma – ordinary people out there in waist-high water, rescuing both their neighbours and strangers, coming from other states and other counties – demonstrate yet again not only the resilience of Americans but our decency in reaching out to others without a thought to personal safety.

What's in a word? A world of tax consequences when the word is "business" or "hobby." In a nutshell: If you and the IRS determine that an activity is a business, you'll owe taxes on profits and will be allowed to deduct expenses for conducting that business. But if your passion for, say, making quilts is a "hobby," you cannot deduct the fabric, thread, needles and labor needed to make the bedclothes.

What is full retirement age to collect Social Security? Previously, you could retire early and begin collecting reduced benefits at age 62. Otherwise, you could wait until you were 65 to collect. Now, however, depending on the year you were born, many people won’t reach full retirement age until age 65, 66, or even 67. People born in 1937 or earlier, reach full retirement age at 65. For those born in 1938 or later, the magic age rises gradually to 67.

Perhaps you've heard of 1031 exchanges or like-kind exchanges, but you're unsure of the benefits or whether you even qualify. The Internal Revenue Code 1031 is available to those who hold a property that qualifies as productive use in business or investments. If you have a piece of investment property, a 1031 exchange allows you to swap it for a similar property.

First, make sure you really received an audit notification. The IRS will notify you either by letter or by a phone call followed by a letter. The IRS does not notify taxpayers about audits through email, so if you do get an email saying you've been selected for an audit, it's probably fraudulent.

The alternative minimum tax or AMT is more than a mere tax: It disallows or reduces exemptions and deductions that would otherwise work to your benefit. Forbes calls it the normal tax system's evil twin. You may think your children entitle you to exemptions or that your property taxes will earn you a deduction; however, AMT could have a whopping tax bill knocking at your door.