eBook | Foreign Asset Reporting: Navigating the Choppy Financial Seas.

Is Medical Insurance Tax Free?

If it is purchased by the employee, everything is tax free. But what if it is purchased by the taxpayer’s employer? Below are some quick and dirty rules for employer-purchased medical insurance. Employer-paid premiums is excludable from gross income. Amount recovered under medical policy is excludable from gross income. Amount recovered under a medical policy […]

Rules for Taxation of Annuities

Below are some quick and dirty rules for taxation of annuities: i. Return of investment is not an accession to wealth, not gross income. ii. Interest earned on investment is gross income. iii. For each payment, prorate evenly between return of investment and interest, reporting only the portion of the payment that represents interest. iv. […]

Rules for Taxation of Life Insurance

Below are some quick and dirty rules for taxation of life insurance. Proceeds from a life insurance policy are excludable from gross income. Interest earned on life insurance proceeds is not excludable from gross income. If the TP receives both proceeds and interest, prorate each payment evenly, reporting only the portion of the payment that is interest. If […]

Unintended Consequences

Some basketball fans may remember the 1988 Summer Olympics in Seoul when, for the first time since the earth cooled, Team USA did not bring home a basketball gold medal. But NBA Commissioner David Stern had a plan: assemble a roster stocked with future Hall of Famers and allow them to run roughshod over any […]

Foreign Account Disclosures Soar To Over 1 Million

The IRS published a News Release on March 15, 2016 entitled, Foreign Account Filings Top 1 Million; Taxpayers Need to Know Their Filing Requirements that readers of this blog might find interesting. Below are some snippets: WASHINGTON — Strong and sustained growth of taxpayers complying with foreign financial account reporting reflects improving awareness and compliance of this important […]