Personal Taxes

Provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all.

Uniform Transfer to Minors and Gift to Minors accounts are custodial accounts set up in a child’s name. There are no income eligibility limits to set up an account. Contributions are not tax deductible.
You may put up to $13,000 a year without any gift tax consequences.
As the custodian you have the choice to invest the money in any investment you choose. The current year tax consequences are that the first $950 of the investment earnings is tax free; the next $950 will be taxed at the child’s tax rate.
Any earnings above $1,900 will be taxed at the parent’s rate until the child is 18 years of age. After 18 the earnings are taxed at the child’s rate. An important item to note with these custodial accounts is that the account belongs to the child.
The child gains full control of the Uniform Gift account at age 18 and gains control of the Uniform Transfer account at age 21. Speak to your local CPA for more information on these custodial accounts.

In the current year, you may exclude up to $92,900 of foreign earned income. The exclusion is an election and claimed on IRS Form 2555. Speak to your local CPA about the taxability and filing requirements with foreign earnings.

The adjusted basis is the amount used to determine your profit or loss on the sale of your rental. It is generally your original cost increased by the non-deductible closing costs at the original closing plus any capital improvements made over the years minus prior years depreciation and other capital write-offs.

If all other criteria are met to file short form 1040A then you can use 1040A if the only capital gains are distributions from a mutual fund.

Depreciation may not be claimed on personal use property such as a residence. Depreciation expenses can be claimed on a Rental property or a business vehicle.

You may be treated as actively participating if for example you participate in making management decisions or arrange for others to provide services. Examples of management decisions are, approving new tenants, deciding on rental terms, approving capital or repair expenditures and other similar decisions.

Generally not. Rental income from real estate is not considered self-employment income subject to self-employment tax. The exception to this is if you are considered a real estate dealer or income from a rental business where substantial services are rendered to the occupant.

If you only gave one lecture and only plan to give occasional lectures then that income is not subject to self-employment tax. If you actively seek lecture engagements and give them with reasonable regularity then your lecture fees are treated as income subject to self-employment taxes.