In the northeast, with the states being smaller than in much of the rest of the country, it is hardly unusual to work and live in different states. Certainly, in the New Jersey – New York area, it is likely all of us know people who live near us in one state and work in another state. It is inevitable that spanning two states creates certain tax complexities. Fortunately, these complexities have become so relatively common that, at least for tax professionals, they are no lon

One of the changes brought about in the relatively recent tax bill is that, subject to various limiting rules, interest expense on the purchase of a car is deductible. Not surprising with virtually any tax matter, there are rules, limitations and other restrictions on how this works. The following are the key issues that are relevant to the ability to deduct the interest expense on a car loan. The loan must be on a new car —loans on used cars are not eligible for this dedu

Also referred to as audits, this is where you get the dreaded letter from the IRS (or possibly from a state government) advising you that you are/your business is, being audited. Typically, the audit notice is for only one year, but it can be for a few years – whatever is open under the prevailing statute of limitations (which is generally 3 years - but with many exceptions). The exam can be very broad based, covering everything on your tax return or in your business, even d

The almost inevitable natural consequence of investing in the stock market is that sometimes you’ll have losses. Losses are deductible against gains. What if you have losses that exceed your gains? Let’s say that this year, with all your stock market transactions, you have $10,000 of gains and $30,000 of losses. From a tax point of view, the $10,000 of gains are offset by the $30,000 of losses, leaving you a net $20,000 of losses in excess of gains for the year. The way the