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George Dimov — Page 26

Expert tax tips, accounting insights, and financial guidance from George Dimov, CPA — serving clients across all 50 states for over a decade.

Page 26 of 32

Do You Pay Taxes on Crypto Before Withdrawal?

Cryptocurrencies have become an integral part of the financial landscape, attracting investors and traders worldwide. However, one of the most frequently asked questions is: “Do you pay taxes on crypto before withdrawal?” To clarify, taxes on cryptocurrency are not triggered just by holding crypto in your wallet. Taxes only come into play when you engage in a taxable event—this occurs when you sell the crypto, trade it for another cryptocurrency, or use it to make purchases.

December 24, 2024Tax Strategy & Planning5 min read

Do I Report Airbnb Income on Schedule C or E?

This all depends on the number of services provided and the frequency of the interaction with Airbnb and the money will be taxed as either sole proprietorship on Schedule C of your income tax return or as partnership on Schedule E.

December 24, 2024Tax Strategy & Planning5 min read

What is the Gift Tax Limit for 2025?

The Internal Revenue Service has determined that $19,000 in 2025 is the annual gift tax exclusion and permits individuals to transfer wealth without a basis for triggering tax reporting or taxation.

December 24, 2024Tax Strategy & Planning5 min read

What is a High-Tax Kickout?

The high-tax kickout is a provision within the U.S. Foreign Tax Credit (FTC) regulations. It reclassifies foreign residual income taxed at a rate exceeding the highest U.S. tax rate into the “general category” for FTC purposes. This ensures accurate tax credit allocation and compliance.

December 24, 2024Tax Strategy & Planning5 min read

Can You Sue the IRS?

Per the federal law provision, there are situations for which you can file a lawsuit against IRS like Taxpayers may sue to stop IRS from collecting if such a collection action is based on wrongful practices , or in case of refund disputes and failure by the agency to release any liens. But legal action is subject to very stringent requirements, including the requirement of fully exhausting all administrative remedies.

December 22, 2024Tax Strategy & Planning8 min read

What is Foreign Earned Income Exclusion: A Guide for U.S. Expats

The Foreign Earned Income Exclusion (FEIE) is a key provision designed to help U.S. citizens and resident aliens avoid double taxation on their foreign income. This tax benefit allows qualified individuals to exclude a certain amount of their income earned abroad from U.S. taxes, reducing their overall tax burden. In this article, we’ll take a closer look at what the FEIE is, who qualifies for it, and how to claim it.

December 22, 2024Tax Strategy & Planning9 min read

What is 25% Depreciation Recapture?

When you sell real estate that has been depreciated, the IRS requires you to recapture the depreciation deductions you’ve taken over the years. However, instead of taxing the entire recaptured amount at ordinary income tax rates, the 25% depreciation recapture rate limits how much of this recapture is taxed at higher ordinary income rates.

December 22, 2024Tax Strategy & Planning8 min read

How to Calculate 1250 Recapture: A Step-by-Step Guide

Section 1250 recapture is the IRS process of taxing the portion of your gain attributed to depreciation on real property.

December 22, 2024Tax Strategy & Planning5 min read

Depreciation Recapture: Definition, Examples, and Implications

When selling an asset that has depreciated over time, many business owners and investors face a tax challenge known as depreciation recapture. Understanding how depreciation recapture works is crucial because it can significantly impact the amount of tax you owe when you sell assets like real estate, machinery, or equipment. In this article, we will explore what depreciation recapture is, how it’s calculated, and its implications for your taxes when selling depreciated assets.

December 22, 2024Tax Strategy & Planning5 min read

What Foreign Income is Taxable in the U.S.?

While the Foreign Earned Income Exclusion (FEIE) can exempt a portion of your foreign-earned income from U.S. taxes, certain other types of foreign income may still be subject to taxation. These include income such as interest, dividends, and rental income, unless specific exemptions or deductions apply.

December 22, 2024Tax Strategy & Planning8 min read

What Happens When You Sell an Asset That Is Fully Depreciated?

Selling an asset that has been fully depreciated can have significant tax implications. When an asset is fully depreciated, it means its book value has been reduced to zero through depreciation deductions over time. However, the gain from the sale may still be subject to taxation, including depreciation recapture. Here’s what you need to know about the tax consequences of selling a fully depreciated asset.

December 21, 2024Tax Strategy & Planning5 min read

Do U.S. Citizens Have to Pay Taxes on Foreign Unearned Income?

Yes, U.S. citizens are generally required to pay taxes on foreign unearned income, such as interest, dividends, or capital gains, even if the income is earned abroad. However, there are exceptions that may reduce or eliminate U.S. tax liability, such as exclusions or tax credits.