Recent News & Blog / Individual Tax
Pay attention to the tax rules if you turn a hobby into a business
Many people dream of turning a hobby into a business. But what if the venture consistently generates losses (deductions exceed income) and you claim them on your tax return? In an audit, the IRS may say it’s a hobby (an activity not engaged in for profit) rather than a business. Then you can’t deduct losses. Contact the CPAs and tax advisors at SEK for help and to answer your tax questions.
Taxes when you sell an appreciated vacation home
If you’re selling a vacation home at a profit, what will you owe in taxes? It depends on whether you’ve used the home as your principal residence for a time or whether you’ve rented it out. If you haven’t done either, the principal home sale gain exclusion tax break (up to $250,000 or $500,000 for a married couple) is unavailable. Other rules apply to a home used as a rental or principal residence. Contact the CPAS and tax advisors at SEK about your situation.
Watch out for “income in respect of a decedent” issues when receiving an inheritance
Most people appreciate inheritances. But in some cases, they may turn out to be too good to be true. “Income in respect of a decedent” (IRD) may create a surprise tax bill for those inheriting certain types of property. Fortunately, there may be ways to minimize the IRD tax bite. Contact the CPAs and tax advisors at SEK for your tax questions.
The pros and cons of turning your home into a rental
If you’re buying a new home, you may have considered keeping your current home and renting it out. This carries potential tax benefits and pitfalls. Contact the CPA's and tax advisors at SEK to answer your tax questions.
After you file your tax return: 3 issues to consider
Make sure to consider these issues after filing your tax return. Contact the CPAs and tax advisors at SEK with your questions.
The tax deadline is almost here: File for an extension if you’re not ready
The April 15 tax filing deadline is right around the corner. However, you might not be ready to file. If you need more time, you should file for an extension on Form 4868. An extension will give you until Oct. 15 to file and allow you to avoid “failure-to-file” penalties. However, it only provides extra time to file, NOT TO PAY. Contact the CPAs and tax advisors at SEK if you have questions about IRS penalties or have more tax questions.
Update on retirement account required minimum distributions
If you have a tax-favored retirement account, including a traditional IRA, you must comply with the required minimum distribution (RMD) rules after reaching a certain age. If you inherit a tax-favored retirement account, including a traditional or Roth IRA, you’ll also have to deal with these rules. Contact the CPAs and tax advisors at SEK to find out more.
How renting out a vacation property will affect your taxes
What are the tax implications of renting out a vacation home part of the year? It depends on the time it’s rented and the time you personally use the home. Questions? Contact the CPAs and tax advisors at SEK for more information and for more tax tips.
Beware of a stealth tax on Social Security benefits
Some people mistakenly think that Social Security benefits are free from federal income tax. Unfortunately, that’s often not the case. Depending on how much “provisional income” you have, some benefits could be hit with federal tax. The CPAs and tax advisors at SEK can calculate any tax on your benefits. Give us a call to answer your tax questions.
A job loss is bad but the tax implications could make it worse
Unemployment is currently low, but some people are still losing their jobs. If you’re one of them, taxes probably aren’t on your mind. However, there may be tax implications. The CPAs and tax advisors at SEK can help you make the best decisions.