The IRS rules for mutual fund cost basis reporting have changed effective January 1, 2012. Before 2012, investment companies were not required to report cost basis information to investors or the IRS when investors sold mutual fund shares. Investors were solely responsible for reporting their cost basis and capital gains to the IRS when they [...]
November 1 is right around the corner which means we have all seen the Halloween decorations go up, pumpkins at the store, and some of you Type A’s have already confirmed your Holiday plans. It also means the end of year is quickly approaching. Most folks don’t really start thinking about taxes until after January, [...]
Traditional IRAs and Roth IRAs have similarities and differences. Some people may wonder which account type is better, but no answer applies universally. Which account to use depends on the personal financial situation and goals of the individual. People who are considering using an IRA should evaluate the features of each so they can determine which account works best for them. A comparison of the main features of Traditional IRAs [...]
A gift is a transfer of property from a giver to a receiver without the giver receiving something of at least equal value in return. The federal government has the power to tax individuals who give gifts of money or property. Whenever federal gift tax is owed, the tax is always owed by the giver, never by the receiver. The [...]
As the 2009 income tax return filing deadline approaches, we want to make sure we have contributed the most we can to our Individual Retirement Accounts (IRAs). The 2009 contribution limit on IRAs and Roth IRAs is $5,000. Individuals age 50 and older can make an additional catch-up contribution of $1,000. Individuals older than 70½ cannot [...]
The first few months of each year are considered “tax season” as most Americans are preparing to file their federal income tax returns before the April 15 deadline. Many Americans are also preparing their state income tax returns during this time. Do you have to file a state income tax return? It depends on where [...]