Make Use of the Zero Percent Tax Bracket – By John R. Bullis

Kim Pilant John's Articles

Yes, the tax laws are complicated.  But if you plan, you can achieve some good results. For instance, the qualified dividends (paid out of profits of a corporation) and long term (held more than a year) capital gains can be taxed at zero in certain instances. If a single person has taxable income (after deducting the 2019 Standard Exemption of …

IRS Wrong to Deny Business Meals Deduction – By John R. Bullis

Kim Pilant John's Articles

The Boston Bruins hockey team provided meals (and lodging) for all team members and the support staff for games they played out-of-town. IRS audited the income tax returns and disallowed the deduction for meals.  The Bruins went to Tax Court claiming the meals were qualified business expenses.  The Bruins contracted with out of town hotels to provide sleeping accommodations and …

Keeping a Record of Business Miles – By John R. Bullis

Kim Pilant John's Articles

If you use your vehicle for business driving including driving to manage and care for your rentals, the “Standard Mileage” method will give you good tax savings.  In 2019, the IRS allows $.58 per business mile.  For example, if you drove 1,000 business miles in 2019, the deduction is $580. The usual problem is keeping a detailed log of all …

Buy Business Vehicle and Save Taxes – By John R. Bullis

Kim Pilant John's Articles

IF you need a business SUV, van or crossover vehicle AND you need more tax deductions for 2018: 1. Buy and place in service by Dec. 31, 2018 a new (or used) business vehicle (OK to have mostly business use with some personal use) and 2. Do a draft 2018 return to see how much you want or need more …

Divorces by Older Folks – By John R. Bullis

Kim Pilant John's Articles

Divorce rates for folks over age 50 are increasing. That leaves less time to adjust and recover both financially and emotionally. Older folks may have decided they don’t want to live the next 20 or more years with someone they don’t love. Sometimes they have just “grown apart” and want to do life differently. It is estimated about 80% of …

Miscellaneous Deductions for Non-Grantor Trusts and Estates – By John R. Bullis

Kim Pilant John's Articles

Beginning in 2018, individual taxpayers do NOT get deductions for miscellaneous itemized deductions on Schedule A of form 1040. The Tax Cuts and Jobs Act of Dec. 22, 2017 eliminated those deductions for individuals. However, Trusts that are not Grantor Trusts for an individual still living (known as Non Grantor Trusts-Trusts for after the grantor’s death) and Estates are allowed …

Planning a Successful Retirement – By John R. Bullis

Kim Pilant John's Articles

The traditional retirement planning is not helping folks develop a written plan for non-financial aspects according to Robert Laura. Traditional planning is getting the Will and Power of Attorney forms with Trusts in some cases, all to reduce taxes and plan for distribution of assets. What is also important is to do a written retirement plan for non-financial aspects. He …