130 results for author: Daniel Morris


Refresher: Principal Residence Gain Exclusion Break (Part 3 of 3)

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo With residential real estate markets sizzling, significant unrealized gains are piling up for many homeowners. That’s good news if you’re ready to sell, but what about the tax implications? Good question. Thankfully, the federal income tax gain exclusion break for principal residence sales is still on the books, and it’s a potentially big deal for prospective sellers. If you’re unmarried, the exclusion can shelter up to $250,000 of home sale gain. If you’re married, it can shelter up to $500,000. That helps!...

Refresher: Principal Residence Gain Exclusion Break (Part 2 of 3)

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo With residential real estate markets surging, significant unrealized gains are piling up for many homeowners. That’s good news if you’re ready to sell, but what about the tax implications? Thankfully, the federal income tax gain exclusion break for principal residence sales is still on the books, and it's potentially a big deal for prospective sellers. If you’re unmarried, the exclusion can shelter up to $250,000 of home sale gain. If you’re married, it can shelter up to $500,000. This is Part 2 of our ...

Refresher: Principal Residence Gain Exclusion Break (Part 1 of 3)

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo With residential real estate markets surging, significant unrealized gains are piling up for many homeowners. This is good news especially if you’re ready to sell, but what about the tax implications? Thankfully, the federal income tax gain exclusion break for principal residence sales is still on the books, and it’s a potentially big deal for prospective sellers. If you’re unmarried, the exclusion can shelter up to $250,000 of home sale gain. If you’re married, it can shelter up to $500,000. Understanding ...

Big Mistake: Filing Your Tax Return Late

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo What’s Late? You are allowed to extend your tax return and file during the period of extension; that’s not a late-filed return. A late-filed return is filed after the last extension has expired. this is what could undesirably cause Three Bad Things to happen. Three bad things happen when you file your tax return late. Bad Thing #1 The IRS notices that you filed late or not at all. Of course, the “I didn’t file at all” people receive the IRS’s “come on down and bring your tax records” ...

Find the Winning Tax Law for Your IRS Audit

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo If you ever find yourself in a dispute with the IRS, it's probably a good idea that you know which documents you will need that will help your case. In this article, I will help you understand my preferred sources of Tax Authority; rules that absolutely bind the IRS and the Rules IRS gives credence to. Know Your Audience When you search for Tax Rules, keep your audience in mind. As you’ll see, the IRS and the courts disagree over the persuasiveness of the different sources of tax law. Unless you are fighting a ...

Tax Savings for Married Taxpayers Claiming Section 179 Deductions

If you are married, you need to know three special rules that can benefit your Section 179 deductions: The Section 179 business income limit includes W-2 income earned by both you and your spouse. Section 179 expensing treats you and your spouse as one taxpayer. If you and your spouse file separate returns, you need to make an overt election of how you are going to share your Section 179 deductions. The W-2 For Section 179, among other purposes, employees are engaged in the active conduct of the trade or business of their employment. Thus, wages, salaries, tips, and other compensation derived by a taxpayer as an employee count as ...

Loophole: Harvest Tax Losses on Bitcoin and other Cryptocurrency

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo You are not cheating when and if you use a loophole. The dictionary defines “Loophole” as a means of escape ... it’s a small opening to admit light and air or to permit observation. When it comes to tax losses on Bitcoin and other cryptocurrencies, you’ll find in this article an escape from a tax-loss rule that does not allow you to deduct a tax loss. Yes, you read that right! The tax code has rules that don’t allow current deductions for tax losses. Background In past articles, I may have explained the ...

Don’t Miss Out on the Employee Retention Credit

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Since the start of all the challenges that the COVID-19 pandemic brought to us with all of its mandates, many inconveniences, and I’m sure business anxiety, one thing is for sure; that your U.S. Government does not want your small business to fail. The U.S. Federal Government wants your small business to survive and likely thrive. Since COVID-19 struck, the government has created free and/or easy money in the form of tax credits and loans that are forgiven. The Employee Retention Credit (ERC) is one such perk for your ...

IRS Income Limit Mistake on Home Office Deduction

Can you ever imagine that the IRS could ever be wrong? If the IRS were wrong, what would be your strategy? Situation You use the office in your home as the administrative office for your business. You use your downtown office as your sales or patient office. The downtown office is the office location where you make the cash register ring. Questions What percentage of your gross income comes from the office in your home? Why do you need to know this? Because the IRS Says... Pub. 587: In its home-office publication, the IRS says that because (a) part of your gross business income comes from your home office, and (b) ...

The U.S. $1 Trillion Infrastructure Package Spotlights Crypto Transactions / Crypto Taxes

It appears that the U.S. Senate is moving closer to passing a $1 trillion infrastructure package recently after lawmakers from both parties came together and voted to clear a key procedural hurdle. The measure would provide a massive injection of federal money for a range of public works programs, from roads and bridges to broadband Internet access, drinking water, and more. This occurred over this weekend in a rare showing of bipartisanship. For those of us who are paying attention, especially for our Customers, there is a provision, tucked inside this massive infrastructure bill that would require tax reporting for transactions similar to ...