Normally, we do not make these requests until we are in the throes of tax season but let’s take a proactive look at steps you can take now via our year-end tax to-do list.
If you have recently inherited an IRA, may receive an inherited IRA in your future or are passing along your IRA to beneficiaries, it is important for you to be aware of the taxation of inherited IRA assets. Specifically, IRS requires you to take required minimum distributions (RMDs) from an inherited IRA. Since IRA accounts are typically funded with all — or almost all — pretax funds, every distribution from an IRA is taxed as ordinary income and can have a considerable effect on your tax liability. There have always been rules to require taxpayers to take these distributions and pay tax on them, but these rules have changed significantly in the last couple of years.
Parsec President and Chief Investment Officer Bill Hansen discusses economic highlights from the second quarter of 2021. Parsec Co-Directors of Tax Services Larry Harris and Brad Burlingham review current estate and gift tax laws and discuss the Biden administration’s proposal as it currently stands. We end by answering your questions submitted during registration.
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For the professional golfer, hitting your ball into the water has its price: It can be embarrassing. The internet is littered with stories and images of PGA Tour players dropping their trousers to take swings at errant, but playable, shots that have landed in hazard areas. It can cost you a tournament. Greg Norman, the …
Debt can sure come in handy when buying a major asset like a house or car or managing unexpected expenses. Thankfully, the interest you pay on this debt can often provide a helpful deduction on your tax return. However, the IRS is very specific regarding the situations where interest is or is not deductible. The rules can be quite complex, so a discussion with your tax professional is always a good idea. Here are several typical examples of how the IRS treats interest payments.