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Author Archive | James B. Reynolds

Selling a home: Will you owe tax on the profit?

Many people have seen their home values increase recently. Be aware of the tax implications if you sell your home. If you’re selling your principal residence, you can exclude up to $250,000 ($500,000 for joint filers) of gain, if you meet certain requirements. For example, you must have owned the property for at least 2 […]

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You can only claim a casualty loss tax deduction in certain situations

In recent weeks, some Americans have been victimized by severe storms, flooding, wildfires and other disasters. Unexpected disasters may cause damage to your home or personal property. The rules for deducting personal casualty losses on a tax return have changed through 2025. Specifically, taxpayers generally can’t deduct losses unless an event qualifies as a federally […]

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Does your employer provide life insurance? Here are the tax consequences

Employer-provided life insurance is a coveted fringe benefit. However, if group term life insurance is part of your benefit package, and the coverage is higher than $50,000, there may be undesirable income tax implications. The first $50,000 of group term life insurance coverage that your employer provides is excluded from taxable income and doesn’t add […]

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ABLE accounts may help disabled or blind family members

There may be a tax-advantaged way for people to save for the needs of family members with disabilities, without having them lose eligibility for their government benefits. It’s done though an ABLE account, which is a tax-free account that can be used for disability-related expenses. Eligible individuals must have become blind or disabled before turning […]

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Scholarships are usually tax free but they may result in taxable income

If your child is fortunate enough to be awarded a scholarship, you may wonder about the tax implications. Scholarships and fellowships are generally (but not always) tax free for students at elementary, middle and high schools, as well as those attending college, graduate school or accredited vocational schools. It doesn’t matter if the scholarship makes […]

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Can taxpayers who manage their own investment portfolios deduct related expenses? It depends

Do you have significant investment-related expenses, including subscription costs and home office expenses? Under current tax law, these expenses aren’t deductible through 2025 if they’re considered investment expenses for the production of income. But they’re deductible if they’re considered trade or business expenses. The U.S. Tax Court has developed a 2-part test that must be […]

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