Q&A Time: eBay, Motorola Solutions, Nike, and Drug Makers
Our research analysts discuss listeners’ questions on several stocks.
Understanding the Math of Recovering From Losses
The Research Analysts explain how it takes more than a 10% gain to recover from a 10% loss.
Good Brands vs. Good Stocks
The Henssler Research team discusses the correlation between good customer service reputation and their stock price.
State Tax Refund—Why Do I Have To Report It As Income?
If you receive a deduction on your taxes for something and later recover the "loss," you must return the "loss" to your income. This rule, the Tax Benefit Rule, is seen most often when a taxpayer receives a 1099-G on their state tax refund from the prior year. For an explanation of how the Tax Benefit Rule works and other instances where you should consider adding this money to your income, read this C.P.A. Insight.
Mortgage Forgiveness Income May Be Excludible From Taxable Income
Normally when debt is forgiven, the forgiven amount is considered taxable income for the person responsible for the debt. Recent tax law changes have made exceptions for qualified principal residence indebtedness. However, this is not necessarily a tax-free transaction–more likely tax-deferred. For more information on the rules surrounding mortgage forgiveness, read this C.P.A. Insight.
Baby Boomers—Are You Ready for Retirement?
With nearly 30% of the U.S. population expected to reach retirement age in the next 18 years, more resources will be required for them to live comfortably during retirement. It is imperative that proper plans and tools are set in place so that they can reach their retirement goals. For more information on the retirement of the baby boomer generation, read this C.P.A. Insight.
529 College Savings Plans
Regardless of income level, each Georgia taxpayer can now take up to a $2,000 deduction per return for contributions made on or after January 1, 2007 to Georgia-sponsored 529 Plans. Prepaid College Tuition Plans and College Savings Plans are the two types of 529 Plans available. For more information on 529 Plans and some of their rules and regulations, read this C.P.A. Insight
Where Is Your Tax Home?
The IRS has often interpreted one’s tax home to be the location of the taxpayer’s principal place of business; however the Second, Fifth, Sixth and Ninth Circuit Courts have all maintained that a taxpayer’s tax home is the location of his permanent residence. For more information on establishing residency to maintain your tax home, read this C.P.A. Insight.
Maximizing Your Estate Tax Credits Through Proper Planning
In order to maximize your estate tax credits, you must first begin with proper planning. Both marital deductions in your estate and a unified tax credit can aid in taking full advantage of estate credits that both you and your spouse are entitled to. For more on estate tax credits, how they work and for some examples of the two, read this week’s C.P.A. Insight.
No Such Thing as an Interest-Free Loan
According to the IRS, there is no such thing as an interest-free loan. Many times, loans that are at below-market interest rates are recharacterized so that market-rate interest income is recognized. For more information about these types of loans and the rules that regulate them, read this C.P.A Insight.