EXECUTIVE SUMMARY Besides providing a tax-favorable option for taxpayers to pay out-of-pocket medical expenses, HSAs can be used as a flexible tax-favored investment vehicle. Annual contributions to an HSA are limited in 2022 to $3,650 for an individual self-only plan or $7,300 for a family plan ($3,600 and $7,200, respectively, in 2021). An additional $1,000 […]

Importance of purchase price allocation in real estate transactions By Jennifer M. Ray, CPA, Frazier & Deeter LLC, Tampa, Fla. December 1, 2021 The bright pink house for sale was an eye-catcher. Built in the 1960s, this not-really-updated two-bedroom, one-bath house was purchased in 2001 for $100,000. In 2019, the asking price was $300,000, but […]

Minimizing a hobby loss issue by electing S status Editor: John Baer, CPA December 1, 2021 If an activity is not engaged in for profit, the “hobby loss” rules of Sec. 183(a) provide that deductions in excess of gross income are not allowable. This statute specifically applies to activities engaged in by both individuals and […]