Every year the IRS must adjust the dollar amounts of a variety of provisions which affect every taxpayer, to keep pace with inflation. New dollar amounts affecting 2012 returns, filed by most taxpayers in early 2013 include the following: more…

Annual Exclusion

Taxpayers are allowed to gift up to $13,000 per year to an unlimited number of people without having to file a gift tax return or pay a gift tax. If the amount goes over $13,000 to any one individual, then a gift tax return must be filed. This is done on IRS Form 709, United States Gift Tax Return. Connecticut taxpayers required to file a federal gift tax return would be required to file Form CT-706/709. The returns are due on April 15. A six month extension of time is granted automatically if an extension of time to file is requested for your individual income tax return. This is done on Form 4868. Taxable gifts above the annual exclusion reduce the federal estate tax exclusion amount when someone passes away. There are a few additional opportunities to gift beyond the annual exclusion without having to file a gift tax return. more…

1) Harvest Capital Losses

Capital gains property includes stocks, bonds and mutual funds.  Currently, the stated rate on long term capital gains is 15%.  If you have a net loss after netting all of your gains and losses, the tax deduction is limited to $3,000. Any excess capital losses can be carried into the future. more…

19 Kids and Counting is TLC's TV show about the Duggar family.  I'm not sure what is scarier, the fact that they already have 19 kids or the rest of the title…"and Counting." more…

Recently in baseball, a Yankee fan caught Derek Jeter’s 3,000th hit ball and now he may have to pay the Internal Revenue Service (“IRS”) tax money on the few gifts the Yankees gave him.  These items included tickets, signed bats, baseballs, and three signed jerseys.  The tax bill may be as high as $13,000! more…