| Worthless Securities |
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| If a taxpayer who is not a securities dealer has invested in stocks, stock rights, or bonds that became worthless, he may be entitled to a tax break in the form of a deduction. The loss is only deductible in the year that the stock became worthless, and there is no deduction available for partially worthless stock. Congress has recognized that it is often difficult to determine exactly when a security became worthless. Thus, a taxpayer is permitted to file an amended return for the year in which the deduction should have been taken within the later of seven years from the date of the original return or two years from the date the tax was paid. If the taxpayer errs and takes the loss before the stock has become completely worthless, he can correct the error by amending the original return to eliminate the deduction and by claiming it in the proper year. More... |
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| Fraternal Societies |
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| Under the Internal Revenue Code, certain organizations and programs are exempt from income taxation. One type of organization that frequently seeks tax-exempt status is the fraternal society. More... |
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| Electing S Corporation Status |
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| A timely and proper S corporation election generally permits the income of the business to be taxed directly to the shareholders of the corporation rather than to the corporation itself. In order to be effective in a current calendar year, the election must be filed by March 15th of that year. If it is filed any later, the election will apply to the next tax year. More... |
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| Tax Advice for Newlyweds |
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| Newly married individuals should notify the Internal Revenue Service of name and address changes. A change in marital status will affect an individual's filing status. Marital status is determined on the last day of the year, so if you were married on December 31, the IRS considers you to have been married for the entire year. More... |
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| Deductibility of Uniforms |
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| Tthe unreimbursed costs and upkeep of a uniform, including laundry and dry cleaning, are deductible only if the uniform is required as a condition of employment. In order to be deductible, the uniform cannot be adaptable to ordinary wear. Even if the clothing is not of a style that you would normally wear outside of your job, it is generally not deductible. More... |
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