PERSONAL TAX ARTICLES

Converting a Residence to Rental Property
For various reasons, you may consider converting your personal residence to rental property. This decision is often made as a result of the inability to sell the property at a gain, the desire to retain the property for future personal use, or the strength of the rental market in your area. However, a decision to convert to rental also should consider economic factors such as your marginal tax rate and the potential loss of your ability to exclude up to $250,000 ($500,000, if married) of gain

Direct IRA Distributions to Charity
This summer's Pension Protection Act of 2006 contains a favorable provision related to IRA distributions.

Update on the Hybrid Vehicle Credit
Starting in October 2006, the credit for vehicles manufactured by Toyota (including Lexus) was reduced to 50% of the original amount because more than 60,000 of those vehicles (the limit set by Congress) have been sold.

Reservists Exempt from 10% Early Withdrawal Penalty
Following the Pension Protection Act (PPA) of 2006, eligible reservists are not subject to the 10% penalty on early withdrawals from IRAs, 401(k) plans, and 403(b) plans.

Health Savings Account (HSA) Basics
Most of us like to take advantage of every available tax break. So, if you are eligible for a Health Savings Account (HSA), now might be a good time to start one.

Temporary Credit for First-time Homebuyers
The recent American Housing Rescue and Foreclosure Prevention Act of 2008 (Housing Act) created a temporary credit to encourage home ownership.

Temporary Property Tax Deduction for Non-itemizers
Thanks to a provision in the recent Housing Act, for 2008 only, an unmarried taxpayer who doesn?t itemize can add up to $500 of state and local real property taxes to his or her ?normal? standard deduction amount.

Changes to the Home Sale Gain Exclusion
Many taxpayers bought a second home, such as a vacation home, with the intention of later converting the second home into their principal residence. Under pre-2008 Housing Act law, those taxpayers could have excluded up to $250,000 ($500,000 for certain joint filers) upon a later sale of that former vacation home as long as the two-year ownership and use tests for the exclusion were satisfied.

Social Security Changes for 2009
The Social Security Administration (SSA) recently announced numerous adjustments to Social Security benefit amounts, thresholds, limits, and exclusions.

Tax-Deductible Alimony Payments
Tough economic times often lead to an increased number of divorces. We hope it won't happen this time around, but it very well could.

Deducting 529 Plan Losses
Thanks to their beneficial tax treatment, qualified tuition programs (QTPs?commonly referred to as 529 plans) have become the plan of choice for many taxpayers trying to save enough money to cover the ever-escalating costs of getting their child or grandchild through college.

How Earned Income Impacts Your Social Security Benefits
If you are a social security beneficiary under full retirement age (currently age 66), an earnings test determines whether your social security retirement benefits will be reduced because you earned more from a job or business than an annual exempt amount.