Taxation of Frequent Flyer Miles

A benefit has only lately received attention after flying under the radar for many years: tax-free receipt of frequent flyer miles. Earlier this year, several news outlets reported that Citibank surprised many of its customers by issuing Forms 1099-MISC, Miscellaneous Income, to report the value of frequent flyer miles the customers had received in exchange

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Offshore disclosure program makes a third go-round

After two successful offshore voluntary disclosure programs, the IRS on Jan. 9 announced a new 2012 Offshore Voluntary Disclosure Program (2012 OVDP). Under the previous two programs, the 2009 Offshore Voluntary Disclosure Program (2009 OVDP) and the 2011 Offshore Voluntary Disclosure Initiative (2011 OVDI), which closed on Sept. 9, 2011, the IRS received over 33,000

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E-mails spread concern about a new “real estate transaction tax”

The impending 3.8% Medicare surtax has fueled a spate of chain e-mails regarding a federal “real estate transaction tax” on home sales, and practitioners are hearing from worried clients. This article separates fact from fiction to help practitioners educate clients about how the Medicare surtax works and how it won’t apply to most home sales.

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IRA minimum distributions in the year of the owner’s death

When an IRA owner dies after required distributions have begun, there is often a required minimum distribution for that year that hasn’t been paid yet. Any required minimum distribution that wasn’t paid to the owner must be paid to the beneficiary. Seymour Goldberg, CPA, discusses how beneficiaries are often unaware of this requirement and are

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What you’ll get in Social Security

Despite what you’ve heard, Social Security isn’t going to disappear. Many younger people, and even some older ones, are convinced the retirement system’s coffers will run dry before they get a chance to claim benefits. The reality is quite different. Even if Congress does nothing to fix the troubled system, and its trust fund is

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Maryland Increases Individual Income Tax Rates and Enacts Other Tax Changes

On May 22, 2012, Maryland Governor Martin O’Malley signed legislation enacting the “State and Local Revenue and Financing Act of 2012” that increases the individual income tax rates, establishes new individual income tax brackets, reduces and eliminates personal exemptions for certain taxpayers, increases the tax rate on other tobacco products and cigars, and provides other

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IRS 2012 Standard Mileage Rates

The Internal Revenue Service issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Read More»{IRS}

Interest on student loans will double in less than a month

Clients still paying off student loans will have a new financial calculation to take into account — the interest rate on federally subsidized college loans will double in less than a month unless Congress takes action. The rate will rise to 6.8% from 3.4%. The Congressional Budget Office estimates it will cost the U.S. $6

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Supreme Court’s health care decision affects many tax provisions

The Supreme Court’s decision upholding the individual mandate in the health care law had a surprisingly large number of tax ramifications. Because much of the health care law was enacted through the Internal Revenue Code, the court’s decision to let the law stand means that numerous tax provisions will take effect over the next few

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U.S. housing market begins real recovery

The positive news just keeps coming in from the U.S. housing market, with data from the National Association of Realtors showing that pending home sales were up 5.9% in May. That’s the highest pending home sales level since 2010, and the upside is being felt in every U.S. region. This time, it looks like the rise

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