It's official. House Democrats have formally requested copies of the last six years of Donald J. Trump's personal and business federal tax returns. Trump has steadfastly refused to make public his taxes, breaking a modern-day tradition set by presidential candidates — and in-office presidents (and vice presidents) — of letting the public have a glimpse of White House 1040s. The main reason Trump has given for keeping his taxes private is that his personal and business filings are under audit. Tax experts throughout the media agree that no sane person would give their tax returns during an audit. After the... Read more →
Rich Wealthy
Hope springs eternal for MLB fans on Opening Day. I'm looking forward to this season bringing another World Series pennant to join the 2017 one in the Houston Astros' Minute Maid Park. (Photo by me, taken at the 'Stros' championship celebration with fans at their home opener on April 2, 2018) Today is a holiday in our house. It's Opening Day for Major League Baseball. Our formal celebration of the sport's first games of the year began when we lived in the Washington, D.C. area. In those days, there were no Nationals. The Baltimore Orioles ruled the MidAtlantic baseball world,... Read more →
UPDATE, Thursday, March 28: Well, I'm not the new Powerball multimillionaire. The lottery jackpot, which hit $768.4 million before the drawing last night, is going to the lucky person who bought the winning ticket in New Berlin, Wisconsin. But save this post. There will be other chances to win! Yes, I bought a ticket for the March 27 drawing of the $750 million and counting Powerball lottery. Yes, I know the odds of winning the jackpot, which is the fourth largest Powerball prize in U.S. history, are about 1 in 292 million. I know many of my hardcore personal financial... Read more →
College and its ever-increasing costs certainly have gotten a lot of attention. There's the group of Democrats seeking their party's 2020 presidential nomination. Obviously spurred by the enthusiastic supporters of Independent-turned-temporary-Democrat Sen. Bernie Sanders and his promise of free college, many other White House wannabes also are talking up educational assistance. Then there's this week's Operation Varsity Blues. You might not have caught the name, but let me drop two others to spur recognition: Felicity Huffman and Lori Loughlin. Yeah, that's the name federal investigators gave to their take down of a far-reaching college admissions scheme. Wealthy parents, elite school... Read more →
Much of the music industry's elite will be at the Grammy awards tonight, all hoping to go home with a new piece of hardware. Many will be disappointed. But perhaps they can take some solace from the goodies they'll get as part of the swag bags that will be distributed before the Recording Academy's 61st ceremonies. This year, the official 2019 Grammy swag bag is worth more than $30,000. But that's not the only gift bag. More than 50 presenters and performers will have the option to go home with not one, but two collections of goodies from the Grammy... Read more →
Leonardo DiCaprio as Jay Gatsby in Baz Luhrmann's 2013 movie The Great Gatsby. (Photo courtesy Warner Bros.) We're about to go into a tax filing season under a new tax law that, despite plan promoters' promises, gives major tax breaks to wealthier taxpayers. That law, the Tax Cuts and Jobs Act (TCJA), is also why a lot of Democrats are looking at ways to at least revise the Republican-written tax bill. The U.S. Constitution says that tax measures must originate in the House of Representatives. Some in that chamber, now under Democratic control after last fall's midterm elections, would like... Read more →
Jeff and MacKenzie Bezos are getting a divorce. I know, it's hard to feel too bad for folks who are so wealthy. They tend to come through difficult circumstances quite well. But the joint announcement today (on Twitter, of course) from the world's richest man and his soon-to-be ex-wife got me thinking about, of course, taxes. By making the decision to end their marriage in 2019, Bezos is losing a tax break while Mrs. Bezos is getting one. As I said, I'm sure neither Mr. or Mrs. Bezos won't suffer too much. Both he and his wife will have lots... Read more →
Tax refund delivery isn't the only tax function that likely would be delayed if the federal government is shut down for an appreciable length of time. Tax audits, or examinations at the Internal Revenue Service calls them, also will be sidelined if fewer agency employees are at work. A lot of folks say that's not a problem. I get it. Nobody likes tax audits, even — maybe especially — when you haven't intentionally done anything wrong with your tax filing. But audits are a key component of taxpayer compliance. Why audits are important: The rationale for auditing returns comes from... Read more →
In just more than a month we'll welcome 2019 and begin the first tax filing season under the Tax Cuts and Jobs Act (TCJA). Are you worried yet? Not to be too pessimistic, but tax law changes always produce some unintended consequences. Some are caught beforehand, usually by the tax community that raises questions and pushes for law changes or at least Internal Revenue Service regulatory clarifications. That process is still on going for many TCJA provisions, but one group of taxpayers now is breathing a bit easier. The Treasury Department and the IRS have issued proposed regulations that will... Read more →
Welcome to Part 6 of the ol' blog's 2019 series on tax inflation adjustments. Today we look at changes to estate, gift, capital gains and kiddie tax provisions. You can find links to all 2019 inflation posts in the series' first item: income tax brackets and rates. Note: The 2019 figures apply to 2019 returns that are due in April 2020. For comparison purposes, you'll also find 2018 amounts to be used in filing this year's 2018 tax return due April 15, 2019. The rich, per the apparently apocryphal F. Scott Fitzgerald characterization, really are different from the rest of... Read more →
Don't let tax turkeys gobble up your money. Make these tax moves, a couple of which are related to recent tax reform, this November and for sure by the end of 2018. South Park turkeys via Giphy It's November! The start of the holiday season. Time to get into the festive spirit with some year-end tax moves. "Whoa! Wait! What the what are you thinking?" you say. "I'm still adjusting to Standard Time and already have a huge to-do list to make sure my family has the perfect Thanksgiving. Then as soon as that's over, I've got to start with... Read more →
As Donald J. Trump has been making the campaign rounds in advance of the midterm elections, he's made some interesting — OK, wrong — comments about taxes. And in trying to cover for explain those remarks, some folks are compounding the misinformation. The latest example underscores a misconception about how retirement account withdrawals are taxes. Trump's tax cut talk: Trump has been touting a pre-Nov. 6 tax cut of 10 percent for the middle class. While nothing is impossible in this crazy world, that's not likely since Congress is not scheduled to return to Capitol Hill until Nov. 12. Many... Read more →
Most folks agree that Wyoming is one of the most naturally beautiful states in the country. But tax experts have different opinions on its taxes and who they help and hurt. (Grand Teton National Park photo courtesy Wyoming Office of Tourism) One of the great things about taxes is that the policies that create them, the tax laws themselves and who and how they affect millions of taxpayers can be parsed so many ways. Take, for example, two recent analyses of state taxes. Tax Foundation each year issues its State Business Tax Climate Index (SBTCI). This analysis of states' tax... Read more →
Today is a great day for my mother. The Social Security Administration announced that she and her fellow Social Security recipients will get a get a 2.8 percent cost-of-living adjustment (COLA) in 2019. The 2019 COLA — the largest since the 3.6 percent bump in 2011 — means the average single retiree's federal retirement benefit will be $1,461 or $39 more a month than this year. My mom is thrilled. Those 30+ bucks will cover her monthly phone bill. Still stretching each month: Unfortunately, the upcoming benefits adjustment won't be enough to make up for more than a decade of... Read more →
The Trump children gathered for this undated family photo. They are, from left, Robert Trump, Elizabeth Trump Grau, Fred Trump Jr., Donald Trump and Maryanne Trump Barry. A piece of information filed years ago during Barry's judicial confirmation hearing led to a New York Times' exposé on the family's wealth and tax tactics. (Donald J. Trump presidential campaign photo) Talk about an awkward Thanksgiving. It seems that Donald J. Trump's oldest sister is how The New York Times got the inside info on the Trump family fortune and taxes. You know of the story even if you haven't yet read... Read more →
Got enough money that you've diversified by investing in some international accounts? Good for you. If, however, those non-U.S. holdings are, shall we say, designed to be ultra-private, you might want to think about opening them up. Specifically, tell the Internal Revenue Service about that money you've been hiding from Uncle Sam or pay a big price when your tax haven money is discovered. One way to do that is by taking advantage of the IRS' Offshore Voluntary Disclosure Program (OVDP). That opportunity, however, is about to end. Closing OVDP: Back in March, the IRS announced that it was giving... Read more →
Sunsets like this one at Zuma Beach in Malibu, California, make many Golden State coastal properties prime rental investments. But Golden State limits on property taxes on inherited homes cost cities and other jurisdictions billions of dollars. (Photo by Alex Beattie via Flickr CC) Californians love Proposition 13, the grandfather of tax-limiting ballot initiatives. Since its passage in 1978, it has kept a tight cap on property tax increases. But an expansion of the original Prop 13, enacted eight years later, and its unforeseen consequences have cost Golden State school districts, cities and counties of billions of dollars in revenue,... Read more →
Congressional Republicans are still fleshing out additional tax law changes, dubbed Tax Reform 2.0, that they hope to enact later this year. As for the first round of tax laws embodied in the Tax Cuts and Jobs Act (TCJA), taxpayers, tax pros, many lawmakers and even the Internal Revenue Service are still sorting exactly what the tax code changes mean. Big and small biz tax breaks: The latest example is the Section 199A deduction. This 20 percent deduction for certain qualified business income ostensibly was created to give certain small businesses, known as pass-through entities, the same type of tax... Read more →
The hubby and I, like every other person, are getting older every day. That means we're getting closer to claiming Social Security and Medicare benefits. Two recent reports on the status of those federal programs make me glad to be closer to our collection dates. Both Social Security and Medicare, according to the programs' trustees, will run out of money to pay beneficiaries in 16 years and 8 years, respectively. At least the grayer-every-day hubby and I will get some of the full payouts. Sorry about all you youngsters! OK, I'm really not that selfish. But we are a bit... Read more →
Actress Meghan Markle may give up her U.S. citizenship after marrying Prince Harry this weekend, but other American expatriations so far this year have slowed. Prince Harry and Meghan Markle join the rest of the British royal family at Sandringham Christmas Day Services last December. (Photo by Mark Jones via Flickr) Great Britain's Prince Harry and American Meghan Markle will tie the knot this Saturday, May 19, (note the international time change if you, like I, plan to watch) at St George's Chapel on the grounds of Windsor Castle. After Markle answers the wedding vow questions about having and holding... Read more →