WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

*  At KIPLINGER.COM Kelley R Taylor lists “The Wash Sale Rule: Six Things You Need to Know”.
 
“Essentially, a wash sale occurs when you sell a security at a loss and then purchase the same security again in a short period.”  But it does not apply if you sell a security at a gain and immediately repurchase the same security.
 
You can sell a security at a gain and immediately repurchase it to generate a capital gain if you have excess net capital losses (more than $3,000).  While you are allowed to carry-forward excess capital losses on the federal return, some state returns, like New Jersey and Pennsylvania, do not allow for any carry-forwards.
 
* Another blog list, this one from Kay Bell at DON’T MESS WITH TAXES – “7 tax considerations for divorcing couples”.
 
Several years ago in an article about divorce and taxes I wrote (showing my age) -
 
“Do you remember L.A. LAW?  While you would want Arnie Becker as the divorce attorney, the divorce agreement should be reviewed by Stuart Markowitz before it is signed.  For a more contemporary cultural reference - you would want David Lee as the divorce attorney, but have the final agreement reviewed by Will Gardner.”
 
* Kay follows up with a list trifecta (an appropriate follow-up to the previous post) – “A tax to-do list after you say 'I do'”.
 
#1 on the list – “Make sure everyone knows your new name” - is very important and echoes what I have been advising for decades (highlight is mine) –
 
“If either, or both of the newlyweds legally change their name post-vows, they need to report it to the Social Security Administration (SSA). The Internal Revenue Service matches what's on your 1040 with the SSA data every filing season. If your new name on your return doesn't match the official SSA info, it could delay any refund from your first post-wedding tax filing.”
 
*  From Robert W Wood at FORBES.COM – “IRS Says Disability Pay Is Taxable Or Tax Free, Here’s How To Tell”
 
TTFN