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Recent News & Blog

Recent News & Blog / Individual Tax

  • The tax rules for legal awards and settlements: What recipients should know

    If you receive a court award or out-of-court settlement, do you have to pay tax on it? The answer is … it depends. The way a settlement is structured can significantly affect your tax liability, making professional guidance essential. We can help you understand the rules, ensure proper reporting and potentially reduce your tax burden. Contact our tax advisors to discuss how a court award or out-of-court settlement may affect your taxes.

  • Still have questions after you file your tax return?

    If you’ve successfully filed your tax return with the IRS, you may think you’re done with taxes for another year. But some questions may still crop up about the return. Here are answers to some questions that we’re frequently asked about tax returns at this time of year.

  • The “wash sale” rule: Don’t let losses circle the drain

    If you make an ill-fated investment in a taxable account, you may be able to harvest a tax-saving capital loss by selling the losing stock. However, for federal income tax purposes, the “wash sale” rule could disallow your tax loss. Contact our tax advisors with questions.

  • Understanding the “step-up in basis” when inheriting assets

    If you inherit assets, they often come with a valuable tax benefit called the step-up in basis. Basis is what the owner paid for an asset, with some possible adjustments. At death, many capital assets (such as stocks, real estate and business interests) are generally stepped up to their fair market value (FMV) as of the date of death. The heir’s basis is the FMV, erasing the tax on any gain accumulated during the deceased person’s life. Contact our tax advisors with questions.

  • What tax records can you throw away?

    After filing, you may want to do some spring cleaning and discard tax documents. But don’t throw away records you might need in the case of an IRS audit. Here are the rules. Contact our individual tax advisors with questions.

  • Tax record retention guidelines for individuals

    What tax records can you toss once you’ve filed your return? The answer is simple: none. You need to hold on to all of your tax records for now. But it’s the perfect time to go through old tax records and see what you can discard.

  • Deduct a loss from making a personal loan to a relative or friend

    Suppose your adult child or friend needs to borrow money. You may want to help by making a personal loan. But there are tax implications that you should understand. That way, if the loan goes bad, you can claim a non-business bad debt deduction for the year the loan becomes worthless. Contact SEK's tax advisors if you have questions.

  • Some taxpayers qualify for more favorable “head of household” tax filing status

    You may feel you’re the head of your household if you’re married, single, divorced, a parent or child-free. However, only certain people can file a tax return with the favorable “head of household” status. Here are the rules. Contact SEK's tax advisors with questions.

  • Claiming losses on depreciated or worthless stock

    Have you ever bought stock shares that later became worthless? You can claim a capital loss equal to your basis in the stock. Contact our tax advisors at SEK with your stock questions.

  • Riding the tax break train: Maximizing employee transportation fringe benefits

    If your employer offers tax-favored transportation fringe benefits, you should probably take advantage of them. Here’s a quick summary of the current federal tax treatment of transportation-related benefits. Contact our tax advisors with questions.

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