Fair market value (FMV) is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts. Source: IRS Publication 561 This definition is …
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Tentative Tax-Fee Tip Occupations Announced
Review and act NOW! In late September, the Treasury Department presented a list of preliminarily-approved occupations that will qualify for the new federal tax-free tip income provision on 2025 tax returns. Here is what you need to know. Background As part of the One Big Beautiful Bill Act (OBBBA), qualifying tip income will not be …
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Don’t Run the Risk of a High Tax Bill!
Know when you should ask for professional help. Before taking action, talk to your tax adviser. How many times have you seen this legal disclaimer? Unfortunately, all too often taxpayers do not follow this advice and then must pay the price with an unnecessarily high tax bill. Here are some of the most common situations …
Understanding Tax Terms: Applicable Federal Rates
Your grandson needs a car, but cannot afford the payments. As a favor, you provide the $25,000 to purchase the car. You tell your grandson to pay you back when he can, but there is no loan document. The IRS sees this payment during an audit and asks where your interest income is for this …
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Reducing the Cost of Higher Education
Ideas to manage your tax breaks With kids now back in college, the fact of higher educational costs is impossible to ignore. As you or your child navigate campus, you are now in position to start navigating the possible tax implications of your new-found college expense. Outlined here are three of the more popular ways …
Reminder: Third Quarter Estimated Taxes are Due
Now is the time to make your estimated tax payment If you have not already done so, now is the time to review your tax situation and make an estimated quarterly tax payment using Form 1040-ES. With the passage of the One Big Beautiful Bill Act (OBBBA), forecasting your tax obligation is now more important …
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Using Losers to Make Winners
With the uncertainty in the marketplace, now is a good time to review the rules surrounding investment losses. This knowledge can help minimize your tax obligation next year. This is because investment gains and income can be subject to a variety of federal tax rates as high as 37%. This, plus the 3.8% net investment …
Time to Forecast Your Business Tax Obligation
Multiple changes make this more important than ever The One Big Beautiful Bill Act (OBBBA) makes a number of changes impacting the business landscape. These changes will impact both small and large businesses. Here are some of the major changes and respective tips to consider. SALT deduction increase requires planning The tax deduction (commonly know …
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Overtime Tax Break Requires Your Attention
With the passage of the One Big Beautiful Bill Act (OBBBA) of 2025, there's the ability to receive a deduction for overtime pay from your federal tax obligation. Here's a recap of the rule and several tax tips to ensure you receive the full benefit of the deduction. The Tax Law Change From 2025 through …
Make Your Child a Tax-Free Millionaire!
Want to jump start your child's retirement with a million dollar tax-free account? Consider this: The million dollar idea As soon as your child begins to earn income, open a Roth IRA and set a contribution goal to reach before they graduate from high school. Assuming an 8% expected rate of return, the investments made …
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