Tax

President Barack Obama is dropping his proposal to tax the earnings on college savings accounts, responding to criticism of an idea the White House announced 10 days ago.

The Minnesota Society of Certified Public Accountants recently surveyed its CPA members in public accounting on the most outrageous tax deductions clients tried to take on their tax returns. Their responses included everything from pets and weddings to cars impounded by the police.

It’s often a challenge to get clients to open up when they come in for their annual appointment during busy season. Maureen Schwartz, executive director of the global public accounting firm association BKR International, offers these 10 conversation starters to ask your clients.

The Internal Revenue Service has issued a notice that provides some relief this tax season from tax penalties for taxpayers who find out when they file their taxes that they received an overpayment of premium tax credits for buying health insurance under the Affordable Care Act.

No states changed their sales tax rates in the fourth quarter of last year, but a number of cities and counties did, according to a new report.

White House officials say they are seeking to dismantle a popular college savings tax break because it favors wealthy households and does little to encourage lower-income students to go to college.

Highlights of some of our favorite tax-related blogs from the past week.

Real estate partnerships pool funds from various investor groups, family offices and public entities to invest in property platforms seeking high cap rates and strong yields. Even though the investors within each fund have different tax structures and tax needs, the goal of enhancing each investor’s rate of return can be accomplished through sophisticated tax planning strategies.

John Hewitt, the president, CEO and chairman of Liberty Tax Service, is anticipating increased business for preparers this tax season thanks to the Affordable Care Act and the boost in employment from the increasingly robust jobs market.

With the top income tax rate at 39.6 percent, advisors need to be savvy about the tax-saving strategies they utilize for their high net-worth clients.