DP Financial & Tax

You may be aware that most homeowners are able to exclude up to $250,000 of the gain realized on the sale of a principal residence. Married couples filing jointly may exclude up to $500,000. Homeowners need to keep very good records of expenses in the event that their gain is greater than the exclusion amounts. The kinds of expenses we're talking about increase the tax basis of your home and therefore decrease taxable gain. They fall into two basic categories: those incurred

A large number of retired individuals are back into the workforce. In addition to earning a salary, these individuals may also be receiving Social Security benefits. Depending on the individual's age, benefits may be reduced and included in the recipient's gross income. Taxpayers at and above full retirement age can continue to earn unlimited amounts without any reduction in Social Security benefits. Full-retirement age was 65 for many years. However, beginning with 1938 birt

The IRS and your Life Insurance The first thing to consider about life insurance policies and taxes, is that for federal tax purposes, to be considered a life insurance contract AND qualify for favorable tax treatment it must do two things: 1) meet state law requirements and 2) satisfy the IRS’s statutory definitions of what a life insurance policy is. The IRS looks at several elements of the policy to verify that a life insurance policy is NOT really an investment vehicle;