One of the most misunderstood taxes is by far the federal gift tax. The federal gift tax applies to transfers of property from one person to another where the recipient does not pay fair market value for the property, or, in the case of gifts of cash, the recipient does not give anything of value in return for the cash. If one or more of these types of transfers are made during the course of the same year, then an IRS Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, will be required to be filed under the following circumstances: (more…)
Archive for June, 2010
The Top 10 Personal and Business Insurance Tax Dos and Don’ts
by P. Lewis RobinsonJun
24
When tax preparation time comes there can be an array of questions about federal tax deductions and what to report as income on your federal tax return. This Insurance Tax Dos and Don’ts list of federal tax tips will hopefully help many with federal tax questions regarding insurance whether on a personal or business level.
Although some of the federal tax preparation points below may be confusing if one is not familiar with the federal tax laws, this list will still be very beneficial to even those who use a tax preparer. Just print out the list below and give it to your tax preparer to make sure they don’t forget any deductions you may have coming on your tax return. (more…)
4 Things to Know About 529 Plan Withdrawals
by P. Lewis RobinsonJun
17
Tax-favored Section 529 college savings plans (sometimes called qualified tuition programs) have been around long enough that many people are now taking withdrawals. Qualified withdrawals are always federal-income-tax-free (and usually state-income-tax-free too). That’s the big advantage of investing in 529 plans. However, the full story on withdrawals is pretty complicated. Here are four important things you should know.
1. You have two payment options
You can have the withdrawal check cut in the name of the account beneficiary (the student for whom the account was set up, which is usually your child or grandchild). (more…)
