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Showing posts from November, 2019

Gambling Winnings & Losses: How to report gambling income and losses

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People love to gamble.  During the past NFL Super Bowl (2019),  gamblers wagered approximately $146 million in Nevada’s sports books, which fell short of the record set the year before of $159 million. The gambling industry continues to grow as U.S. legislation becomes less restrictive relating to the gambling industry.  Because of the size of the gambling market, the IRS set forth guidance to control the tax treatment of gambling winnings and losses. I will discuss income and losses, record keeping, reporting forms, and special rules. If you participate in gambling activities, it is important to know the unique personal tax rules. The term 'gambling' applies to a wide range of activities, including: sports betting, casino games, lotteries, etc. You will need to follow the established gambling tax rules when reporting winnings and losses from gambling activities. Related Posts IRA Income: Must know tax rules relating to your IRA Are your income items taxable? Gamblin

Rental of Residence: How to rent your house tax-free?

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Do you own a home or vacation home in a desirable location? Is the location of your home(s) near a large event or significant tourist attraction? If so, you can make some extra income by renting out your home. Because of services like Airbnb and Vrbo, it is easier than ever to make extra income via short-term rentals. Ordinarily, rental income is fully taxable. However, an advantageous exception to this rule exists for taxpayers participating in short-term rentals. If you take advantage of this exception, you can benefit from a large amount of tax-free income. I will discuss the rules and requirements below. Learn how to rent your home tax-free! Related Posts -  Recession Tax Planning: Take advantage of a declining market by saving on taxes -  Five easy steps to lower expenses and decrease spending -  IRA Income: Must know tax rules relating to your IRA How to rent your home tax-free? The general rule: Rental income earned from a personal residence rented for fewer than 15

IRA Income: Must know tax rules relating to your IRA

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We should all be saving for retirement. An individual retirement arrangement (IRA) can be a great method to do so. IRAs allow you to save for retirement while also providing tax benefits. In order to fully take advantage of the retirement account, you should know the important tax rules surrounding your IRA. Knowing the rules will help you in your IRA decision-making, including how to take advantage of the tax benefits, and how to avoid the tax penalties. In general, you cannot make withdrawals from your IRA until you reach the age of 59 1/2 . The mandatory age to start withdrawals is 70  1/2 . By following the age requirements, you will avoid the tax penalty on early withdrawals. The tax rules relating to IRA distributions (withdrawals) vary based on several factors. Related Posts -  Dividend Income: How is dividend income taxed? -  State Tax Refunds: Are state tax refunds taxable?  -  Recession Tax Planning: Take advantage of a declining market by saving on taxes Taxati