Investment Travel

Trips to your broker, investment adviser, and to look after investment property are deductible. Be sure to keep track of your mileage and you can deduct 57.5 cents per mile for 2015. Costs to attend investment seminars or conventions and trips to attend stockholder meetings are nondeductible.

IRA Partnerships

In the last several years many of you have received K-1's from partnerships due to investments in your IRA account. The federal ID number is not your social security number but another entity number. Brokers have been putting funds in partnership investments to try to increase yields. The question is what do you do with these K-1's on your tax return. The short answer is that you do nothing on your own individual tax return. A form 990-T for tax exempt organizations needs to be filed if the code 20 V on the K-1 is greater than $1,000. Code V is for unrelated business income. Most of the K-1 code V's I have seen are much less than $1,000.

Estimated Tax payments

A common IRS notice that I have been seeing lately deals with differences in estimated tax payments between the taxpayer and the IRS. Estimated tax payments are due quarterly and I usually will calculate them in advance for the next year when I do the tax return. Sometimes the amounts paid in differ from what I set up or from what the taxpayer remembers when giving me info on the  tax organizer. One way to make certain differences don't come up is to have the estimated tax payments come out automatically from your bank account. I have been doing it this way on my return for years without any problems. The money comes out on the due date and will still be timely, and you don't have to write a check and mail it in. All I need to set up is your bank routing number and account number.

Medicare and Annual Wellness Visits

Medicare does not cover yearly physical exams, but it does provide for an annual wellness visit every 12 months which is not as extensive as an annual physical. Annual wellness coverage started in 2011 because of the Affordable Care Act, and includes measurement of weight and blood pressure, medical update history, a review of initial personal risk assessment, detection of cognitive impairment, a review of medications, an update of referral services, and an updated screening schedule.