| Standard v. Itemized Deductions |
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| One important decision that the individual taxpayer has to make when preparing his or her federal income tax return is whether to itemize deductions or to take a standard deduction. The correct choice between separately listing and adding together individual items that are deductible under the Internal Revenue Code and taking a flat statutory amount to reduce the amount of income on which you are taxed can legally reduce a taxpayer's liability. More... |
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| Social Clubs |
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| Under the Internal Revenue Code, certain organizations and programs are exempt from income taxation. One type of organization that frequently seeks tax-exempt status is the social club. More... |
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| Excess Passive Income in an S Corporation |
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| Generally, an S corporation pays no federal income taxes. Any income or loss is usually passed through to shareholders in proportion to the ownership interests on a per-share, per-day basis, and the shareholders report their portion of the entity's income or loss on their individual tax returns. However, additional taxes may be assessed against S corporations with excess passive income. More... |
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| Long-Term Care Contracts and Expenses |
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| Premiums paid for a qualified long-term care insurance contract are a medical expense, but the deductible amount of the premium is limited by the age of the taxpayer at the end of the tax year. The deductible portion of premiums paid increases with the age of the taxpayer. The limit on premiums is for each person. More... |
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| Non-deductible Business Interest |
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| Not all interest is deductible by a business. In general, you are not permitted to deduct interest that must be capitalized under the Internal Revenue Code, that is not really interest, that is personal interest, or that is prohibited under other sections of the tax law. More... |
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