Recent News & Blog / Individual Tax
Understanding taxes on real estate gains
Let’s say you own real estate that has been held for more than one year and is sold for a taxable gain. You may expect to pay the standard 15% or 20% federal income tax rate that usually applies to long-term capital gains from assets. However, some real estate gains can be taxed at higher rates due to depreciation deductions. The calculations are complex. The CPAs and tax advisors at SEK will handle them when we prepare your tax return.
Do you owe estimated taxes? If so, when is the next one due?
Federal estimated tax payments ensure that certain individuals pay their taxes throughout the year. If you don’t pay enough during the year through withholding and estimated payments, you may be liable for a penalty on top of the tax due. Contact the CPAs and tax advisors at SEK with your tax questions.
The tax implications of disability income benefits
Many Americans receive private disability income. How is it taxed? It depends on who paid for the tax treatment depends on who paid for the insurance coverage. Contact the CPAs and tax advisors at SEK for help with your tax questions.
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.