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☆ 4 red flags for an IRS tax audit — and how to avoid the 'audit lottery,' according to tax pros
▼ + stars: | 2024-02-13 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

But everyday filers could still face an audit — and certain issues are more prone to IRS scrutiny, experts say. Audit rates of individual income tax returns decreased for all income levels from tax years 2010 to 2019, largely due to lower IRS funding, according to a report from the Government Accountability Office. Here are some of the biggest IRS audit red flags. Unreasonable tax breaksAnother red flag could be excessive deductions compared to what's considered normal for your income level, according to Losi. Earned income tax creditThe earned income tax credit, a tax break for low- to moderate-income workers, has historically been scrutinized "because the refundable part attracts certain bad actors," said Steber.

Persons: Ryan Losi, Mark Steber, Jackson Hewitt, Steber, what's, Losi, Erin Collins Organizations: Getty, IRS, Office, NEC, lotto, Center, filers Locations: Syracuse, U.S

☆ What it’s really like to go to the Super Bowl
▼ + stars: | 2024-02-10 | by ( Harmeet Kaur | Scottie Andrew | ) edition.cnn.com time to read: +14 min

The person who attended the Super Bowl nine timesMike Quackenbush has been to the Super Bowl nine times — but he didn’t personally pay for tickets because, technically, he was there on business. It’s a great event and I was super lucky to go all those years.”The first-time Super Bowl attendee who went during the pandemicChelsea Bear was all smiles at the 2021 Super Bowl. Lennox McLendon/AP Most rushing yards in a Super Bowl: Washington quarterback Doug Williams won the Super Bowl MVP award in 1988, but rookie running back Timmy Smith set a Super Bowl record that year with 204 rushing yards against Denver. Ezra Shaw/Getty Images Longest pass in a Super Bowl: Carolina wide receiver Muhsin Muhammad caught an 85-yard touchdown pass from Jake Delhomme during Super Bowl XXXVIII in 2004. Paul Sancya/AP First score in Super Bowl history: In the first quarter of what we know now as Super Bowl I, Green Bay Packers wide receiver Max McGee scored a touchdown on a 37-yard pass from Bart Starr.

Persons: who’ve, who’d, —, he’d, Mike Quackenbush, didn’t, Quackenbush, Washington Redskins —, ”, he’ll, Peyton Manning’s, it’s, It’s, Bear, Chelsea Bear, Chelsea Bear’s, Chloe, ” Bear, couldn’t, Tom Brady —, I’ll, San, Judy Abad, “, Steve Young, Tom DiPace, Tom Brady, Brady, John David Mercer, Jerry Rice, Lennox McLendon, Doug Williams, Timmy Smith, Bob Galbraith, Rod Martin, Jeff Roberson, Bill Belichick, Belichick, Al Bello, Baltimore's Jacoby Jones, Ezra Shaw, Muhsin Muhammad, Jake Delhomme, Brian Bahr, Willie Parker, Paul Spinelli, Pittsburgh's James Harrison, Kurt Warner, Leon Lett, Lett, Buffalo's Don Beebe, Rick Stewart, Manny Ramirez, Peyton Manning, Denver's Knowshon Moreno, Paul Sancya, Max McGee, Bart Starr, McGee, Neil Leifer, Scott Norwood, Phil Sandlin, Abad, ” Abad, Mike Ryan, Chris Jeter, Ryan, Patrick Mahomes wasn’t, “ I’d Organizations: CNN, Super, Kansas City Chiefs, San Francisco 49ers, NFL, Super Bowl, NFL Players Association, Bowls, Washington Redskins, Buffalo Bills, Chelsea, Chiefs, Tampa Bay Buccaneers, South Florida, Bucs, New England Patriots, Philadelphia, Patriots, Atlanta, USA, Cincinnati, Famer, Washington, Denver, Oakland, Raiders, Philadelphia Eagles, New, New York Giants, Ravens, San Francisco, Getty, Pittsburgh, Dallas Cowboys, Rose, Green Bay Packers, San, 49ers, Buffalo, Bills, Kansas City, Bowl, I’m Locations: Tampa, San Francisco, Diego, Francisco, New England, Carolina, Denver, Seattle, Kansas, Miami

The tax return my CPA prepared instead reported a $16,000 gain, and it took months to fix the error. I get started with tax season in January now — even with a CPA, things can go awry. They had helped me resolve an issue with a previous tax return. Content to have identified the problem, I reported my findings, expecting my CPA would simply amend the return. If I had known how day trading could complicate my return, I might have changed my approach.

Persons: —, aren't Organizations: CPA, Service, GameStop

☆ A boomer Uber driver made over $100,000 but lost $80,000 to expenses and fees. He shares why he plans to keep driving.
▼ + stars: | 2024-02-05 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +7 min

A boomer Uber driver's business had over $100,000 in earnings but only $20,000 in profits. But after Uber took its cut and his driving expenses were accounted for, his profits fell to about $20,000. The $44,000 deduction was an estimate for tax purposes, so it's possible his true vehicle expenses weren't quite that high. AdvertisementThat said, commissions and driving expenses took a significant cut out of his business's profitability. His first year driving Uber, 2016, was more eventful than he anticipated: He got caught in Hurricane Matthew while driving in Norfolk, Virginia.

Persons: boomer, —, Dean Ceran, Kia Forte, Uber, he's, Ceran, it's, haven't, they're, Lisa Greene, Lewis, Greene, — Ceran Organizations: Uber, Service, BI Locations: Virginia, Hurricane, Norfolk , Virginia

☆ Tax season is underway. Here’s what investors should know to prepare
▼ + stars: | 2024-02-01 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +6 min

Tax filing season officially started on Monday, and investors could pay the price following last year's stock market bonanza. Meanwhile, investors collected yields exceeding 5% in money market funds, certificates of deposit and high yield savings accounts. In New York, the top income tax rate is 10.9%, and it's 13.3% in California. Vanguard's New York Municipal Money Market Fund (VYFXX) has a 7-day SEC yield of 4.25% and an expense ratio of 0.16%. Fidelity offers the California Municipal Money Market Fund (FSPXX) , which has a 7-day yield of 3.54% and an expense ratio of 0.3%.

Persons: Tim Steffen, Brenna McLoughlin, you've, McLoughlin, Vanguard's, Sam Nofzinger, Steffen, it's, There's Organizations: Baird, Wealthstream Advisors, York Municipal Money Market Fund, SEC, Fidelity, Money Market Fund, Public Locations: Milwaukee, New York, California, York, –

☆ Investors may miss out on this key tax loophole if they actively trade a spot bitcoin ETF
▼ + stars: | 2024-01-18 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

But there's a catch with conventional assets: the wash sale rule . Now, tax professionals are flagging a potential wrinkle that may arise: Even though bitcoin itself isn't subject to the wash sale rule, a spot bitcoin ETF very well may be. Property versus security Under federal tax law, the IRS deems cryptocurrency to be property . Managing limitations At its core, that means investors should avoid swapping in and out of the same spot bitcoin ETF within the 61-day limit if they had sold the position. This also raises the question of whether dumping one spot bitcoin ETF for another would be deemed substantially identical.

Persons: Stephen Turanchik, Paul Hastings, Andrew Gordon, Dan Herron, Richard LaFalce, Morgan Lewis, Turanchik Organizations: Internal, Digital, Tax, Force, American Institute of CPAs, IRS, Gordon Law Group, Elemental Wealth, Investors Locations: San Luis Obispo , California

☆ A boomer shares how Lyft driving has been a retirement hack — supplementing his income while allowing him to draw on his Social Security without penalty
▼ + stars: | 2024-01-15 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +5 min

For entertainment expenses like travel and eating out, however, he planned to use income from a part-time job and draw on his Social Security benefits. But there was one challenge with this plan: If Americans draw on Social Security before their full retirement age, then there's a limit to how high their taxable income can be before their Social Security benefits take a hit. The Social Security Administration says it will deduce $1 from benefit payments for every $2 one earns above the annual limit, which is $22,320 in 2024. "Because the driver can deduct his mileage from his side gig income and make below the earnings limit, his Social Security income will not be reduced," she said. "Many retirees often begin working side gigs, do freelance work, or receive other retirement income without knowing how other streams of income can impact how their Social Security income is taxed," she said.

Persons: —, Mark McCann, wouldn't, McCann, it's, Uber, — McCann, Lisa Greene, Lewis Organizations: Service, Business, Social Security, Social Security Administration Locations: Dallas, Lyft

Passive income streams are a great way of mitigating your financial risk and earning extra income. I talked to financial advisors and accountants about lucrative passive income streams they've seen. Owning a parking lot, real estate, blogging, and online courses can generate over $100,000 a year. To help mitigate personal financial risk, I try to create as many passive income streams as I can. Over the years, I've built multiple passive income streams for myself including courses, e-books, and selling merchandise.

Persons: —, I've, Chris Nddie, Brent Dickerson, Dickerson, Olivia Tan, Tan, Sanchit Taksali, Get Organizations: Service, Invest, CPA, SEC

☆ Return to Work Is Coming for Your Pandemic-Era Home
▼ + stars: | 2023-11-23 | by ( Libertina Brandt | ) www.wsj.com time to read: 1 min

After three years of living in her dream home in a Texas community called Rocky Creek Ranch, Donna Rutter is giving it up to move closer to the accounting firm she bought in the nearby city of Fort Worth. Rutter spent most of her 30-year career as a CPA for large firms in Dallas and Fort Worth. Even before Covid, she had a work style that allowed her some flexibility. She didn’t have a central office she went to every day, but she had clients she traveled to visit on site. That schedule allowed her to build a home in Rocky Creek, about 20 minutes from downtown Fort Worth.

Persons: Donna Rutter, Rutter Locations: Texas, Rocky, Fort Worth, Dallas, Rocky Creek

Cara LombardoCara Lombardo is a senior reporter for The Wall Street Journal in New York. She and her colleagues regularly break market-moving news on the biggest and most interesting deals and activist fights. In 2021, she was part of a team that won a Gerald Loeb Award for the paper’s coverage of Amazon’s business practices. She joined the Journal in 2017 and previously covered breaking news and the beverage industry. She has undergraduate and master’s degrees in accounting and a master’s degree in journalism, all from the University of Wisconsin-Madison.

Persons: Cara Lombardo Cara Lombardo, Gerald Loeb Organizations: Wall Street, University of Wisconsin - Madison, LinkedIn Locations: New York

☆ You could owe 0% capital gains tax for cryptocurrency in 2023. Here's what crypto investors need to know
▼ + stars: | 2023-11-17 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

STR | NurPhoto via Getty ImagesAs investors weigh year-end tax moves, there may be a lesser-known savings opportunity for certain cryptocurrency investors, experts say. After the crypto industry lost nearly $1.4 trillion in 2022, many investors leveraged tax loss harvesting, which uses losses to offset profits. But after a rally in 2023, you may consider strategically selling profitable crypto held in brokerage accounts, known as "tax gain harvesting." Investors "really ought to be paying attention" to tax-free opportunities to harvest crypto gains, according to Wheelwright. Still, the tax gain strategy allows you to sell at a gain and pay no tax, whereas "tax loss harvesting defers future tax," Gordon said.

Persons: Tom Wheelwright, Wheelwright, Andrew Gordon, Gordon, That's Organizations: Getty Images, Gordon Law Group, IRS

☆ What we'd like to see from 3 economic readings and 2 earnings reports next week
▼ + stars: | 2023-11-11 | by ( Zev Fima | ) www.cnbc.com time to read: +9 min

The major averages advanced again this week as earnings results came in largely better than expected, interest rates stabilized and oil prices dropped below $80 a barrel. Looking ahead, we'll get a couple more earnings results and some key inflationary data to chew on. In this past week, we bought 150 shares of DuPont (DD) and added 75 shares of Wynn Resorts (WYNN). As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.

Persons: Stocks, Wynn Resort's, WYNN, we'll, That's, —, we're, it's, PANW, Tyson, Henry Schein, Spero, Sanara, Sara Lee Corp, JD.com, Woodward, Jim Cramer's, Jim Cramer, Jim, Mario Anzuoni Organizations: Nasdaq, Dow Jones, Coterra Energy, Emerson, Disney, PPI, TJX, Palo Alto Networks, DuPont, Wynn Resorts, WYNN, Tyson Foods, TSN, Tower Semiconductor, Partners, Genius Sports, Spero Therapeutics, Star Bulk Carriers Corp, Beauty Health, Asure, Gladstone Capital Corp, TeraWulf Inc, Harrow Health, Afya, Sea, Paysafe Group Holdings, Solar Inc, Aramark Holdings Corp, Lending, Holding, BioXcel Therapeutics, IHS Inc, Rewalk Robotics, Acurx Pharmaceuticals, Energizer Holdings, Power Solutions, Rekor Systems, Wine Estates, Momentus Inc, SIGMA Lithium Corporation, AlTi, QuickLogic Corporation, Arcturus Therapeutics, Dada Nexus, Solutions, Target Corp, Parts, ZIM Integrated Shipping Services, Alto Networks, Cisco Systems, Chemical & Mining Co, PennantPark Investment Corp, Copa Holdings S.A, Walmart, Arcos Dorados Holdings, ARCO, NICE, Body, Warner Music Group Corp, Ross Stores, Homes, Dolby Laboratories Inc, American Software, ESCO Technologies, ZTO, International, BJ's Wholesale, Jim Cramer's Charitable, CNBC, Maxx Locations: Macau, Chile, Cayman, Pasadena , California

Advantages to opening multiple savings accountsOne benefit of opening multiple savings accounts is that you can save money for specific goals. Traditional savings accounts at a brick-and-mortar bank typically offer lower savings account interest rates than high-yield savings accounts at online banks. Disadvantages to opening multiple savings accountsOpening up multiple savings accounts also comes with several potential disadvantages. Tips for managing multiple savings accountsIf you decide to open multiple savings accounts, here are some tips for managing them:Keep track of your accounts. Multiple savings accounts: FAQsIs it OK to have multiple savings accounts?

Persons: Mike Landsberg, Homrich, it's, Jaime Eckels, Plante, Roth IRAs, Eckels, who's, Landsberg, Banks, Get Organizations: CPA, CFP, CPWA, Homrich Berg Wealth Management, Financial, FDIC, SEC, Bank Locations: Landsberg, Chevron

☆ Learn how to drive performance on TikTok from these award-winning brands
▼ + stars: | 2023-11-10 | by ( Sponsor Post | Created Tiktok For Business With Insider Studios | ) www.businessinsider.com time to read: +9 min

Additionally, there was a significant boost in searches and sales on search channels during the TikTok campaign, with a remarkable 4x increase in daily searches compared to the pre-campaign period. The brand then leveraged TikTok's new end-to-end automation solution Smart Performance Campaign, which maximizes delivery outcomes for businesses. ERGO's campaign shows the effectiveness of scaling your TikTok ad creative to combat fatigue and drive results. If you'd like to learn more about TikTok and the TikTok Ad Awards, sign up for their newsletter. Read about the winners of the Greatest Creative category at the TikTok Ad Awards 2023.

Persons: TikTok, PureGym, Italy Ray, Cosmétiques, Read Organizations: Agency, Nepa, Value Media, Mobile, Orange, Spain ING, Señora, Banking, ING, CPA, Business, Insider Studios Locations: Europe, Germany, France, Italy, Spain, Poland, TikTok

☆ A real-estate investor who owns over 700 rental units shares the secret to getting a 5% interest rate, and says most people don't realize this option exists
▼ + stars: | 2023-11-08 | by ( Laila Maidan | ) www.businessinsider.com time to read: +8 min

Luckily, there are ways around the bank, one of which is seller financing, a process that makes the seller also the lender. But if he had to turn to the bank, it would have decreased the property's net profit because of high interest rates. Seller financing isn't common, though it is a more alluring choice when interest rates rise. "People don't think of the strategy because so many people have been used to the low interest rates. When offering an interest rate, start low because it's likely the seller will counter but not low enough that it insults them.

Persons: Matthew Tortoriello, Tortoriello, They've, Chris Gerbig, who's, they'll, Shmuel Shayowitz, Shayowitz Organizations: Public Locations: Holyoke , Massachusetts, Chicopee , Massachusetts

Financial experts advised investing in real estate and startups, and starting a low-cost business. That's what led me to ask financial advisors and professionals how they'd take $10,000 and turn it into $100,000 in just 10 years, aside from investing in stocks. Invest in real estateOver the years, as I've been able to save more, I've started to consider the idea of investing in real estate. R.J. Weiss, a financial planner, says that if you are willing to take on debt, investing in real estate is one way to grow $10,000 to $100,000 in 10 years. For those of us living in expensive real estate markets, the best real estate investing apps provide another way in.

Persons: —, I'm, I've, Weiss, Read, Zach Reece, Reece, ZipRecruiter, Alvin Carlos, Carlos Organizations: Finance, Service, Invest, R.J, Companies Locations: Republic

The best money advice is usually boring and unsexy, which explains why no one wants to hear it. The best money advice is decidedly unsexy. Although the purpose of an HSA is to save money for inevitable healthcare expenses, you can just as easily use your HSA as an investing tool. Also, if you leave your HSA money in your account until age 65, you can withdraw your HSA funds for non-medical expenses at any point. The person who started investing at 25 will have roughly $162,000 in their account, while the person who started at 35 will only have $89,000.

Persons: Rachel Wooten, maxing, —, Wooten, you'll, doesn't, stashed Organizations: Service, CPA, Flint Group

☆ A real-estate investor with a 311-unit portfolio breaks down the tax rule that saved her hundreds of thousands of dollars last year — and even allowed her to claim a $167,000 check from the IRS
▼ + stars: | 2023-11-02 | by ( William Edwards | ) www.businessinsider.com time to read: +6 min

So when she heard about a particular tax strategy on a podcast two years ago, it surprised her that she'd never come across it. Cost segregation. According to Rocket Mortgage, a cost segregation study takes about a month or two to complete. It's also worth keeping in mind the rules around cost segregation from the Tax Cuts and Jobs Act of 2017. Then there's the cost of a cost segregation study.

Persons: Anne Curry, she's, hasn't, she'd, Curry, Bernard Reisz, you've, Reisz, It's, it's, —, there's, I'm, who's Organizations: Rocket Mortgage, Internal Revenue Service, CPA Locations: New York City

The Employee Retention Credit was intended to be a financial lifeline to small businesses struggling to make ends meet during the pandemic. Innovation Refunds — a consulting firm that focuses on the ERC — was one of the most visible advertisers during the tax credit's heyday. How Innovation Refunds worksOn its website, Innovation Refunds makes it clear it is not a tax professional. Innovation Refunds markets to clients, determines if they are viable candidates for the credit and then collects businesses' documentation. Some former employees said this could insulate Innovation Refunds from potential liability if ineligible businesses claimed the credit.

Persons: Danny Werfel, Andrew Kelly, Howard Makler, Ty Burrell, Burrell, Rob Domenico, Werfel, Tom Williams, Makler, Kate Rogers, Domenico, Slack, Jenn McCabe, Armanino Organizations: Companies, ERC, Internal Revenue Service, IRS, ERC —, CNBC, Reuters, CPA, Senate, Washington , D.C, CQ, Inc, Getty, LinkedIn, Justice Locations: New York, Washington ,, Des Moines

☆ Protect your portfolio income from hefty state taxes with these funds
▼ + stars: | 2023-10-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Investors in high-tax locales can protect some of their portfolio income from steep levies by adding state-specific municipal bond funds to their fixed-income roster. "In the muni bond fund market, we're seeing yields higher than they have been in more than a decade," said Amy Arnott, portfolio strategist for Morningstar Research Services. That's because while muni bond income is generally free of federal taxes, it can also avoid state levies if the investor resides in the state where the bond was issued. That's where state-specific muni bond funds come into the picture. See below for a chart of 10 large state-focused muni bond funds.

Persons: Bonds, haven't, Amy Arnott, Dan Herron, Herron, Arnott, CNBC's Gabriel Cortes Organizations: Federal Reserve, Muni Bond ETF, Morningstar Research Services, Vanguard, SEC, Vanguard New, CPA, Wealth Advisors, muni Locations: California, New York, Massachusetts, Ohio, Jersey

Start your search for a tax preparer or tax advisor before the peak of tax season. How to find the best tax preparer or advisor near youLike finding the right doctor or therapist, it can take time to find the best tax preparer or tax advisor for your situation. A tax attorney has demonstrated expertise in areas of federal and/or state tax preparation and complex tax planning. How to choose a tax preparer frequently asked questionsWho is the best person to get tax advice from? A tax preparer must obtain a preparer tax identification number (PTIN) from the IRS in order to prepare a tax return in exchange for compensation.

Persons: —, it's, Kristine Stevenson Seale, Seale, It's Organizations: Service, IRS, Society of Accountants, Better, BBB, Chevron Locations: Austin , Texas, Chevron

Schedule C is a tax form for self-employed people to report business income. You do so on a tax form called Schedule C.See Insider's picks for the best tax software >>Here's what to know about Schedule C and its filing requirements. What is the Schedule C tax form? Schedule C is a form that self-employed people have to file alongside their tax return, or Form 1040. Schedule C frequently asked questionsDo I have to file a Schedule C?

Persons: It's, —, Kristine Stevenson Seale, Seale, Mark Luscombe Organizations: Service, CPA, Wolters Kluwer, Accounting, NEC, IRS, Insurance Locations: Austin , Texas

I asked money experts for tips on how to get the most out of selling stocks by the end of the year. I'm going to use tax-loss harvesting to maximize the benefit I get from selling stocks. One pain point I'm addressing is that I have lost so much money in the stock market this year, and I just want out. With his recommendation, I sat down and reviewed each individual stock, looked into the company's earning reports, and researched news about emerging trends in that industry. However, Han shared a caveat that's important to know if you're someone who plans to keep on buying and selling stocks.

Persons: I'm, —, I've, Jeff Rose, Lei Han, Rose, Han, shouldn't Organizations: Service, CPA

☆ Trump, fraud, and minding the GAAP: A guide to the accounting rules at the heart of his NY trial, courtesy of 2 standup comics who happen to be CPAs
▼ + stars: | 2023-10-09 | by ( Laura Italiano | ) www.businessinsider.com time to read: +8 min

Trump's $250M fraud trial hinges on whether he followed generally accepted accounting principles. AdvertisementAdvertisementTrying to follow the Trump Organization civil fraud trial but don't understand all the quacking about "GAAP, GAAP, GAAP" — those wonky, "generally accepted accounting principles" at the heart of the trial? Donald Trump leaves his civil fraud trial in New York on its third day of testimony. "I know Trump would like to see them 'wiggle, wiggle, wiggle' for sure," she added. AdvertisementAdvertisementTrump's civil fraud trial begins its second week on Tuesday.

Persons: —, Donald Trump, Donald Trump , Jr, Trump, Letitia James, Donald Trump's, Tammara Buckey, Buckey, Buckley, Missy Hydrick, Steve Gianturco, He's, Stevie GB, Brendan McDermid, Gianturco, Seth Wenig, FASB, Fabio, James, Jason Derulo Organizations: Service, Trump Organization, New York, Trump, NY, CPA, Federal, Accounting Locations: Huntsville , Alabama, Long Island , New York, New York, York, Manhattan's

Now that I have a child, I wanted to get life insurance, but my husband and I wanted different kinds. But my husband didn't agree, and the conversation around life insurance kept dropping to the bottom of our to-do list. By the end of 2023, we both had to have life insurance coverage, no matter what. My husband wanted term life insurance, but I wanted whole life insurance. Life insurance tends to be less expensive based on your age, and we're not getting any younger.

Persons: —, didn't, Eleanor Johnson, Johnson, it's, isn't, you've, we're Organizations: Service, Highland Capital

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