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Author Archive | James B. Reynolds

Caring for an elderly relative? You may be eligible for tax breaks

Taking care of an elderly parent or relative may provide more than just satisfaction. You could also be eligible for tax breaks. For example, if the individual qualifies as your “medical dependent,” and you itemize deductions on your return, you can include any medical expenses you incur for the relative along with your own when […]

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Valuable gifts to charity may require an appraisal

If you donate valuable items to charity, you may be required to get an appraisal. The IRS requires donors and charitable organizations to supply certain information to prove their right to deduct charitable contributions. If you donate an item of property (or a group of similar items) worth more than $5,000, certain appraisal requirements apply. […]

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Thinking about converting your home into a rental property?

Some taxpayers move to new homes but rent out their present homes. Renting out a home carries potential tax benefits and pitfalls. You’re generally treated as a landlord once you begin renting your home. That means you must report rental income on your tax return but are entitled to deductions for utilities, incidental repairs, depreciation […]

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Once you file your tax return, consider these 3 issues

After filing a 2021 tax return, keep these three issues in mind: 1) You can check on your refund by going to irs.gov. Click on “Get Your Refund Status.” 2) Some tax records can now be thrown out. You should generally save statements, receipts, etc. for three years after filing (those related to the 2018 […]

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Selling mutual fund shares: What are the tax implications?

For tax purposes, the rules involved in selling mutual fund shares can be complex. If you sell appreciated fund shares that you’ve owned for more than one year, the profit will be a long-term capital gain. The top federal income tax rate will be 20% and you may also owe the 3.8% net investment income […]

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The tax rules of renting out a vacation property

What are the tax consequences of renting out a vacation home part of the year? It depends on how many days it’s rented and your level of personal use. Personal use includes vacation use by your relatives and use by nonrelatives if market rate rent isn’t charged. If you rent the property for less than […]

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