Recent News & Blog / Individual Tax
Certain charitable donations allow you to avoid taxable IRA withdrawals
Are you philanthropic? If you’re 70½ or older, you may want to consider making a potential tax-saving strategy called a qualified charitable distribution (QCD). How does it save tax? The money given to charity counts toward your RMDs but doesn’t increase your adjusted gross income (AGI), which may allow you to qualify for other tax breaks. Questions? Contact the CPAs and tax advisors at SEK.
What might be ahead as many tax provisions are scheduled to expire?
We’re likely to see major federal tax changes within the next year or two. The reason has to do with the upcoming elections and provisions of the Tax Cuts and Jobs Act (TCJA) that are set to expire on Dec. 31, 2025. What will happen to YOUR taxes depends on which scenario becomes reality. Contact the CPAs and tax advisors at SEK for more information.
Social Security tax update: How high can it go?
Employees, self-employed individuals and employers all pay Social Security tax, and the amounts can get bigger every year. And yet, many people don’t fully understand the Social Security tax they pay. Contact the CPAs and tax advisors at SEK with your tax questions.
House rich but cash poor? Consider a reverse mortgage strategy
Are you a taxpayer age 62 or older who needs income and owns a house that has appreciated greatly? A reverse mortgage may be a solution. With one, you can raise needed cash and also take advantage of the tax-saving basis “step-up” rule. Contact the CPAs and tax advisors at SEK with more information and to answer your tax questions.
Erroneous notices issued by IRS and PA Department of Revenue
Some clients are receiving late notices about their 2023 tax bill from the IRS. This is an error in the IRS systems.
You may be entitled to tax breaks if caring for an elderly relative
There are many personal rewards for taking care of an elderly relative. You could also be eligible for tax breaks, especially if the person qualifies as your dependent. Contact the CPAs and tax advisors at SEK for more information and more tax tips.
A three-step strategy to save tax when selling appreciated vacant land
Let’s say you own one or more vacant lots and that property has appreciated greatly and you're ready to sell. Or maybe you have a parcel of appreciated land that you want to subdivide into lots, develop them and sell them off for a big profit. Either way, you’ll incur a tax bill. There’s a strategy to consider that allows favorable long-term capital gain tax treatment for all the pre-development appreciation in the value of your land. Contact the CPAs and tax advisors at SEK for tax assistance and to avoid potential pitfalls.
When do valuable gifts to charity require an appraisal?
If you donate valuable items to charity and you itemize deductions on your tax return, you may be required to get an appraisal. The IRS requires donors and charities to supply certain information to prove their right to deduct contributions. Questions? Contact the CPAs and tax advisors at SEK for more information.
Pay attention to the tax rules if you turn a hobby into a business
Many people dream of turning a hobby into a business. But what if the venture consistently generates losses (deductions exceed income) and you claim them on your tax return? In an audit, the IRS may say it’s a hobby (an activity not engaged in for profit) rather than a business. Then you can’t deduct losses. Contact the CPAs and tax advisors at SEK for help and to answer your tax questions.
Taxes when you sell an appreciated vacation home
If you’re selling a vacation home at a profit, what will you owe in taxes? It depends on whether you’ve used the home as your principal residence for a time or whether you’ve rented it out. If you haven’t done either, the principal home sale gain exclusion tax break (up to $250,000 or $500,000 for a married couple) is unavailable. Other rules apply to a home used as a rental or principal residence. Contact the CPAS and tax advisors at SEK about your situation.