taxable income

The Capital Gains Look-Through Rule at a Glance

Taxpayers love utilizing the lower capital gains tax rates when they can. Not widely known, however, is the Capital Gains Look-Through Rule (IRS Reg 1.1(h)-1). This rule says that certain types of gain from the sale or exchange of an … read more

Can Spouses Help each Other Lower Their Self Employment Tax?

Can an accountant who loses money and his wife, a realtor who makes money, combine their businesses in order to lower their self-employment tax? No. A recent case in the Tax Court involved such an issue. Donald Fitch, a self-employed … read more

Temporary Regulations Provide Guidance on Form 5471

Effective December 31, 2013, the IRS issued temporary regulations providing guidance on the reporting by U.S. officers, directors, and shareholders of foreign corporations. Generally, this information is required to be reported on Form 5471, Information Return of U.S. Persons with … read more

Survey Suggests Taxpayers are Overconfident in Their Tax Prep Skills

Even as the tax code becomes increasingly complex, more and more Americans are preparing their own tax returns. A recent survey conducted by BMO Harris Financial Advisors found that nearly 48% of Americans prepare their own tax returns. Eighty-three percent … read more

Timing Rules for SEPs and SIMPLE-IRAs Part II

For the most part, SEPs (Simplified Employee Pensions) and SIMPLE (Savings Incentive Match Plan for Employees)-IRAs live up to their billing as easy ways to set aside tax-favored retirement funds for employees and employers. However, contribution rules for these plans … read more

IRS Releases New Requirements to Claim the Earned Income Tax Credit

Recently, the IRS released new requirements for taxpayers to be eligible to claim and take advantage of the Earned Income Tax Credit (EITC). The online and interactive EITC Assistant has been upgraded to assist you in determining whether you qualify … read more

Individual Health Care Choices for 2014

Either you have health care coverage in 2014, or you do not – those are the two choices that are available.  If you have health care coverage, it must be qualifying coverage.  And if you do not have coverage, you … read more

Form 1099-K: What is It and What Do You Need to Do with It?

Most people are familiar with the various 1099 series forms, such as the 1099-MISC, 1099-B, 1099-INT and the 1099-DIV. In the last two years, however, businesses have been receiving an unfamiliar form: the 1099-K. Fortunately for taxpayers, not much needs … read more

Taxable and Nontaxable Income

In a perfect world, all of our income would be nontaxable income, instead of taxable.  But, alas, that is not the case.  In fact, it us most likely the reverse – most types of income are taxable, instead of nontaxable. … read more

Six Important Facts about Dependents and Exemptions

The IRS issued a tax tip on six important facts about dependents and exemptions. While each individual tax return is unique, there are some tax rules that affect every person who files a federal income tax return. Remember that a … read more

Welcome


There is nothing more complex than the world of taxes. We know this and yet we chose careers where we face these issues everyday. We get questions day in and day out about new tax laws, forms and news items and how they affect everyday people and businesses. Well, here at Henry & Horne, LLP we have set out to do what we do best; help everyday people understand what is going on in the world of state, local, federal, estate and international taxation. We will provide these weekly posts and we encourage you to give us feedback on those posts as well as letting us know what else you would like to know more about. Welcome to "Tax Insights." We hope you find this blog informative and worthy of your time.


Before posting a comment on a blog post please be aware that we do not give free tax advice to non-clients by email, comment response, or phone. Thank you!


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