Federal Taxes – DougFreemanCPA.com

Reasons an LLC might be the ideal choice for your small to medium-size business

Leave a Comment / Business Entities, Federal Taxes, Limited Liability Company, LLC, Small Business, Small Business Owners / Douglas Freeman

Choosing the right business entity is a key decision for any business. The entity you pick can affect your tax bill, your personal liability and other issues. For many businesses, a limited liability company (LLC) is an attractive choice. It can be structured to resemble a corporation for owner liability purposes and a partnership for […]

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6 tax-free income opportunities

Leave a Comment / College Education Expenses, Federal Income Tax, Federal Taxes, Income Tax, Roth IRA / Douglas Freeman

Believe it or not, there are ways to collect tax-free income and gains. Here are some of the best opportunities to put money in your pocket without current federal income tax implications: Advance planning may lead to better results You may be able to collect federal-income-tax-free income and gains in several different ways, including some

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Are you unfairly burdened by a spouse’s tax errors? You may qualify for “innocent spouse relief”

Leave a Comment / Federal Taxes, Innocent Spouse, Tax Return / Douglas Freeman

Navigating the complexities of tax law can be difficult, especially when faced with an unexpected tax bill due to the errors of a spouse or ex-spouse. The reason for such a bill has to do with the concept of “joint and several” liability. When a married couple files a joint tax return, each spouse is

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How are Series EE savings bonds taxed?

Federal Taxes, Savings Bonds, Taxes on Savings Bonds, U.S. Treasury Department / Douglas Freeman

Savings bonds are purchased by many Americans, often as a way to help fund college or show their patriotism. Series EE bonds, which replaced Series E bonds, were first issued in 1980. From 2001 to 2011, they were designated as “Patriot Bonds” as a way for Americans “to express support for our nation’s anti-terrorism efforts,”

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Six tax issues to consider if you’re getting divorced

Divorce, Federal Taxes, Qualified Domestic Relations Oder (QDRO) / Douglas Freeman

Divorce entails difficult personal issues, and taxes are probably the farthest thing from your mind. However, several tax concerns may need to be addressed to ensure that taxes are kept to a minimum and that important tax-related decisions are properly made. Here are six issues to be aware of if you’re in the process of

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Be aware of the tax consequences of selling business property

Capital Gains, Federal Taxes, Ordinary Income Tax, Sale of Business Assets, Small Business, Small Business Owners, Small Business Tax Tips, Tax Laws / Douglas Freeman

If you’re selling property used in your trade or business, you should understand the tax implications. There are many complex rules that can potentially apply. To simplify this discussion, let’s assume that the property you want to sell is land or depreciable property used in your business, and has been held by you for more

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What might be ahead as many tax provisions are scheduled to expire?

Corporate Tax Rates, Deductions, Federal Tax Deductions, Federal Taxes, Itemized Deduction, Past-Through Entities, Qualified Business Income Deducton (QBI), Tax Cuts and Job Acts (TCJA), Taxes 2024 / Douglas Freeman

Buckle up, America: Major tax changes are on the horizon. The reason has to do with tax law and the upcoming elections. Our current situation The Tax Cuts and Jobs Act (TCJA), which generally took effect in 2018, made sweeping changes. Many of its provisions are set to expire on December 31, 2025. With this

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The tax consequences of selling mutual funds

Federal Taxes, Mutual Funds / Douglas Freeman

Do you invest in mutual funds or are you interested in putting some money into them? If so, you’re part of a large group. According to the Investment Company Institute, 116 million individual U.S. investors owned mutual funds in 2023. But despite their widespread use, the tax rules involved in selling mutual fund shares can

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House rich but cash poor? Consider a reverse mortgage strategy

Capital Gains, Federal Taxes, Home Equity Conversion Mortgages (HECM), Home Mortgage / Douglas Freeman

Are you an older taxpayer who owns a house that has appreciated greatly? At the same time, you may need income. Thankfully, there could be a solution with a tax-saving bonus. It involves taking out a reverse mortgage. Reverse mortgage basics With a reverse mortgage, the borrower doesn’t make payments to the lender to pay

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Taxes when you sell an appreciated vacation home

(LTCG) Net Long-Term Capital Gain, (NIIT) Net Investment Income Tax, Capital Gains, Federal Taxes, Rental Property, Vacation Rental / Douglas Freeman

Vacation homes in upscale areas may be worth way more than owners paid for them. That’s great, but what about taxes? Here are three scenarios to illustrate the federal income tax issues you face when selling an appreciated vacation home. Scenario 1: You’ve never used the home as your primary residence In this case, the

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