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As Holidays Approach, IRS Reminds Taxpayers of Refund Delays in 2017

 

IR-2016-152, Nov. 22, 2016

WASHINGTON — As the holidays approach, the Internal Revenue Service today reminded taxpayers to remember that a new law requires the IRS to hold refunds until mid-February in 2017 for people claiming the Earned Income Tax Credit or the Additional Child Tax Credit. In addition, new identity theft and refund fraud safeguards put in place by the IRS and the states may mean some tax returns and refunds face additional review.

 

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New Office Artwork And Mr. Smart Tax Review!

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Special thanks to Sandra Schlink for this awesome painting for the office!

PCH Laguna Beach Crystal Cove El Moro Canyon California Sandra Schlink Orange County

 

Mr. Smart Tax 3rd Anniversary Party

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Economic Troubles Ahead? Clean Up, Save Up, Understand & Review

Whether you prefer hands on investing or hiring wealth managers, start saving money and protect your portfolio. Healthy cash reserves cover 12-24 months of living expenses, but 6 month reserves is a great start. Most importantly keep an eye on your investments and make smart moves with your money.

John Riley, AIF from Cornerstone Investment Services is worried about the economy. In his recent article published June 2016, he discusses 4 charts that indicate negative economic trends and 4 helpful tips to protect your portfolio .

Ultimately the key to fortifying your financial position is to clean up, save up, understand & review – Mr. Smart Tax, Inc. is here to help. Schedule your free initial consultation today!

(800)-425-0570 or email us at contact@MrSmartTax.com

Read full article by John Riley here…

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Tax Day Freebies

While tax day might be a terrible day for some, there are some freebies out there that you can take advantage of. Read more here…

Slurpee’s, 7 Eleven & the IRS

IRS Urged To Improve Corporate Tax Collections

Per the guidance of Senate Finance Committee ranking member Ron Wyden, Oregon-Dem, the IRS is being urged to establish a better system of collecting corporate taxes that are owed, but not paid. Wyden hopes to improve the collection of corporate taxes and is leading an investigation into the IRS collection efforts during next weeks budget hearings with the U.S. Treasury Department. Read more here

 

 

Real Estate Inherited From a Deceased Spouse? Step Up Your Tax Knowledge

mst step up in basisDid you inherit real estate from a deceased spouse? The internal revenue code has special tax treatment for valuing the basis of inherited property regardless if you have estate tax filing requirements and no doubt this will impact you.

If the inherited property has appreciated in value, the surviving spouse will generally receive a step up in basis of the inherited property to the fair market value (FMV) at:

        1) the date of decedent’s death or

        2) on the alternate valuation date (within 6 month of the date of death).

 

mst new houseFurther, in community property states (i.e. California, Arizona, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin), married individuals are typically considered to each own 50% of the community property. As such, when either spouse dies, the entire value of the community property, including the part owned by the surviving spouse, receives a step up in basis to the FMV. For this rule to apply at least 50% of the value of the community property must be included in the deceased spouse’s gross estate regardless if the deceased spouse’s estate must file a estate tax return.

These rules can come in handy when a surviving spouse is in need of liquid capital. It should be noted that this special tax treatment can have adverse consequences if not handled correctly. Consult your tax adviser for more information.

 

Sources:

IRC 1014

IRC 2032

Publication 551

Publication 555