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The Vacation Home

Apparently, there are those thinking about buying a vacation home. At some point in time in the future, I will inherit half of one and have no interest in buying the other half. But second homes are now highly sought after now as Americans’ net wealth and disposable...

Crypto Currency

Did you at any time during 2019, receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?   Yes or no? Big brother wants to know. This is an important question for the 2019 tax filing in early 2020. The IRS has redesigned...

Social Security Limits

The Social Security wage base rises next year to $137,700, this is a $4,800 hike. The Social Security tax rate on employers and employees stays pat at 6.2%. Both will continue to pay the 1.45% Medicare tax on all compensation, with no cap. Individuals also pay the...

Real Estate

IRS tax liens on real estate can follow the property when it is sold. A buyer learned this lesson the hard way after purchasing realty in a foreclosure sale. Four years earlier, the Service had recorded its notice of tax lien on the property after the former owner...

Employee

A man who set his own hours and worked unsupervised is determined to be an employee; not an independent contractor, the Tax Court rules. After examining all of the facts, including the following: The man worked for the same company for many years. The company withheld...

Social Security Number

If you have a child due towards the end of the year be sure your child has a Social Security number if claiming the child credit. Listing applied for is no longer an option. You must put the SSN on the Form 1040 to get the $2,000 credit. Eligible children without SSNs...

Health Coverage

People who choose to go without health coverage will find it easier to fill out their 2019 tax returns. The 2017 tax reform law repealed the fines under Obamacare’s individual mandate for post-2018 years. So those taxpayers who chose to forgo getting health insurance...

Sales Tax Audit

A business manager called in a bit of a panic.  It seems that their bookkeeper had quit four months before and they received a notice that they are now being audited by the Illinois Department or Revenue for their Sales Taxes for 2017 to 2019. I went to meet with the...

Workers Compensation Insurance

I was working with a client that came to me after a worker’s comp audit.  The owner and family were the only ones listed on the policy and drawing salary.  The audit determined that their independent contractors were in fact employees and not independent contractors...

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