Archive - July 22, 2009

1
Tips to Stay Current with Estimated Tax Payments
2
Budgeting for a new Home
3
Unraveling the Income in Respect of a Decedent “IRD”

Tips to Stay Current with Estimated Tax Payments

Estimated tax payments are required on income that is not subject to withholding. The most common types of income that results in estimated tax are earnings from self-employment, interest, dividends, alimony, and rental income. Here are some basic tips related to estimated tax obligations.

Calculate your estimated tax payments
Many taxpayers have difficulty predicting what their actual income from self-employment and other sources (rental properties, investments, etc.) will be from year to year. Form 1040-ES is the form that is used to calculate required estimated tax payments. Use this form to calculate estimated taxes. Unless you anticipate significant changes in …

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Budgeting for a new Home

Budgeting for a New HomeOwning a home is part of the American Dream.  There are some great financial reasons for owning a home.  For many people, having their own house gives them a greater sense of security and control over their lives than renting a home.  Over long periods of time, homes have increased in value.  This adds to the owner’s financial wealth while providing a place to live.

Ideally you own a home that’s worth somewhere between one and a half to two and a half times your pre-tax annual income.  There are certainly some real estate markets where that’s not practical.  You’d …

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Unraveling the Income in Respect of a Decedent “IRD”

The topic of Income in Respect of a Decedent (IRD) can be a particularly confusing aspect of the tax code – but it doesn’t need to be. Put simply, IRD is any income that a decedent would have received had death not occurred – that has NOT been included as income on the final return. In essence, this rule provides that certain items in the estate, specifically income items, do not receive a step-up in basis. This income has to be accounted for on one of three tax returns:

  • estate
  • beneficiary
  • other assignee (of right to income)

If you are

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