Disagrees With Tax Planning Tip

BY COOK

I do not agree with the recommendation to pay IRA fees out of separate funds stated in “Tax Planning Tips for 2000 and Beyond,” ( JofA, Nov.99, page 10). What percentage of taxpayers gets any tax benefit from miscellaneous deductions subject to the 2% rule?

If the fee is paid out of IRA funds, you do lose the tax deferred earnings on the fee, but you get a tax deduction (in effect) since the taxable income will be less upon withdrawal.

William A. Cook, Jr.
Roanoke, Virginia

SPONSORED REPORT

Keeping client information safe in an age of scams and security threats

A look at the Dirty Dozen tax scams and ways to protect taxpayer information.

TAX PRACTICE CORNER

More R&D tax help

"Can I use the R&D credit?" PATH Act enhancements make the credit more attractive to a wider range of taxpayers.

QUIZ

News quiz: Tax-related data breach explained

News about a data breach that affected about 100,000 people, the IRS’s budget for the fiscal year, and the 2018 health spending account limits received attention recently. See how much you know with this short quiz.