e-Bulletins

Substantiating Charitable Contributions

The tax code encourages charitable giving by allowing individuals to claim then as itemized deductions. However, in order to sustain these deductions in an IRS audit, it is important to be mindful of the substantiation rules. For a contribution of cash, check, or other monetary gift, regardless of amount, you must maintain a bank record or a written communication from the charity showing its name, plus the date and amount of the contribution. For a contribution of property other than money, you generally must maintain a receipt from the charity... [Read complete e-Bulletin]

How Floridians Indirectly Pay State Income Taxes

Those of us who live in Florida are fortunate to live in a state where there is no state income tax.  But are we completely off the hook?  Not exactly.  High state income states can actually shift some of the tax burden that they impose on their residents onto taxpayers elsewhere through the state income tax deduction available on the federal tax return. For example, let’s take a high earner who lives in New Jersey and makes about a million dollars. That taxpayer will pay about $70K per year in NJ state income tax.  On his federal... [Read complete e-Bulletin]

Teaching kids about taxes at Halloween

From comedian Tim Slagle: “Here is how to start your kids understanding the tax burden at a very early age.” Enjoy!  Read More →

Taxation of stock options

The tax law creates a special type of employee stock option called an Incentive Stock Option (ISO).  ISO’s receive preferential tax treatment relative to “nonqualified” options. The advantages are as follows: The tax basis in the purchased shares at the time of exercise is the employee’s out of pocket cost (the “strike price” times the number of shares). No income is recognized until shares are sold, providing an option to defer the tax. Any gain recognized at the time of the sale is considered capital gain.  To... [Read complete e-Bulletin]