RITA Tax Rate Increases
The Regional Income Tax Agency (RITA) has announced municipal income tax rate increases as a result of recent elections. The majority of these rate increases, listed below, will take effect July 1, 2017.
News & Tech Tips
IRS changes W-2 & 1099 filing deadlines
New for the 2017 filing season, the employer deadline for Forms W-2 and 1099-MISC to be submitted to the IRS has changed. The new filing deadline is now the same as the due date for employers to issue these forms to recipients, January 31.
2016 Year-End Tax Planning Tips
With a new administration taking shape in our nation’s capital after the elections, you can expect that significant tax reforms will be debated, and perhaps enacted, in the near future.
Retirement Plan Contribution Limits Remain Unchanged for 2016
Retirement plan contribution limits are indexed for inflation, but with inflation remaining low, the limits remain unchanged for 2016.
Tax consequences to consider before putting your home on the market
When you sell your principal residence, you can exclude up to $250,000 ($500,000 for joint filers) of gain if you meet certain tests. Gain that qualifies for exclusion also is excluded from the new 3.8% Medicare contribution tax.
Losses on the sale of your home aren’t deductible. But if part of it is rented or used exclusively for your business, the loss attributable to that portion is deductible, subject to various limitations.
Because a second home is ineligible for the gain exclusion, consider converting it to rental use before selling. It can be considered a business asset, and you may be able to defer tax on any gains through an installment sale or a Section 1031 exchange. Or you may be able to deduct a loss, but only to the extent attributable to a decline in value after the conversion.
If you’re thinking about putting your home on the market, please contact us to learn more about the potential tax consequences of a sale.