Note: The content of this video applies only to taxes prepared for 2010. It is included here for reference only. The IRS charges taxes on certain gifts that people make during the year. Learn about the IRS rules
Tighter rules also govern gifts and services that accompany charitable donations. For example, if you receive a seat at an award dinner in return for a portion of your donation, that portion is not deductible. Ask the organization to verify the value of your deduction. If you donate...
The standard deduction, which is used to reduce an individual's taxable income, is relied on by a majority of taxpayers,accordingto the Tax Policy Center. A married couple earning a combined $100,000 could use the 2025 standard deduction to reduce their taxable income to $70,000 for instanc...
While settlement money is tax-free, punitive damages meant to punish the other party are taxable. To avoid unexpected tax bills and ensure you’re not taxed on exempt portions, seek guidance from a professional. They can help structure your settlement to maximize your take-home amount. 11. Fo...
Rewards that are given away as part of new banking account recruitment drives are considered income and can be taxed. If the value of those taxable rewards is more than $600, banks are required to send 1099 tax notices to both the IRS and the rewards recipient.creditcards.com...
these tax payments are not considered additional gifts by the grantor. This approach leverages the income tax grantor trust rules (outlined in IRC §§671-679), treating the assets as though they are owned by the grantor f...
those over 70 ½ can have their IRA distribute funds directly to the charity4. The IRA distribution to the charity is not taxable to the account owner and a charitable deduction is not allowed. Even with the suspension of RMDs for 2020, QCDs may be advisable in certain situations if the...
It also explains what investment income is taxable and what investment expenses are deductible. It explains when and how to show these items on your tax return. There's information on how to determine and report gains and losses on the disposition of investment property. Another key section rega...
IRS methods of gathering evidence to prove tax crimeThe strongest evidence of a taxpayer’s willfulness is typically the size of taxpayer’s tax deficiencies that can be proven to occur over a number of years. Experience has shown the Government that a greater amount of tax deficiency can ...
rules, regardless of where they reside. Former United Kingdom prime minister Boris Johnson provided a high-profile example when he renounced his U.S. citizenship in 2016 after receiving an unpleasant surprise in the form of an American tax bill on the sale of his London residence. (For more...