Recent News & Blog / Individual Tax
Six tax issues to consider if you’re getting divorced
Divorce entails difficult personal issues, and taxes are probably the farthest thing from your mind. However, they should be considered to keep taxes to a minimum. Contact the CPAs and tax advisors at SEK with your divorce financial issues.
Planning your estate? Don’t overlook income taxes
The high federal estate tax exemption means that many people aren’t concerned with estate tax. But you should still consider saving income tax for your heirs. A gift carries a potential income tax cost because the recipient receives your basis upon transfer. He or she could face capital gains tax on the future sale of the gifted property. Contact the CPAs and tax advisors at SEK with your tax planning questions.
Certain charitable donations allow you to avoid taxable IRA withdrawals
Are you philanthropic? If you’re 70½ or older, you may want to consider making a potential tax-saving strategy called a qualified charitable distribution (QCD). How does it save tax? The money given to charity counts toward your RMDs but doesn’t increase your adjusted gross income (AGI), which may allow you to qualify for other tax breaks. Questions? Contact the CPAs and tax advisors at SEK.
What might be ahead as many tax provisions are scheduled to expire?
We’re likely to see major federal tax changes within the next year or two. The reason has to do with the upcoming elections and provisions of the Tax Cuts and Jobs Act (TCJA) that are set to expire on Dec. 31, 2025. What will happen to YOUR taxes depends on which scenario becomes reality. Contact the CPAs and tax advisors at SEK for more information.
Social Security tax update: How high can it go?
Employees, self-employed individuals and employers all pay Social Security tax, and the amounts can get bigger every year. And yet, many people don’t fully understand the Social Security tax they pay. Contact the CPAs and tax advisors at SEK with your tax questions.
House rich but cash poor? Consider a reverse mortgage strategy
Are you a taxpayer age 62 or older who needs income and owns a house that has appreciated greatly? A reverse mortgage may be a solution. With one, you can raise needed cash and also take advantage of the tax-saving basis “step-up” rule. Contact the CPAs and tax advisors at SEK with more information and to answer your tax questions.
Erroneous notices issued by IRS and PA Department of Revenue
Some clients are receiving late notices about their 2023 tax bill from the IRS. This is an error in the IRS systems.
You may be entitled to tax breaks if caring for an elderly relative
There are many personal rewards for taking care of an elderly relative. You could also be eligible for tax breaks, especially if the person qualifies as your dependent. Contact the CPAs and tax advisors at SEK for more information and more tax tips.
A three-step strategy to save tax when selling appreciated vacant land
Let’s say you own one or more vacant lots and that property has appreciated greatly and you're ready to sell. Or maybe you have a parcel of appreciated land that you want to subdivide into lots, develop them and sell them off for a big profit. Either way, you’ll incur a tax bill. There’s a strategy to consider that allows favorable long-term capital gain tax treatment for all the pre-development appreciation in the value of your land. Contact the CPAs and tax advisors at SEK for tax assistance and to avoid potential pitfalls.
When do valuable gifts to charity require an appraisal?
If you donate valuable items to charity and you itemize deductions on your tax return, you may be required to get an appraisal. The IRS requires donors and charities to supply certain information to prove their right to deduct contributions. Questions? Contact the CPAs and tax advisors at SEK for more information.