Tax Season Reminders

1. Recent law increased Section 179 deduction
   Did you purchase and begin using new or second-hand business equipment during 2014?

IRS service will decline by ACA and budget cuts

IRS Commissioner John Koskinen has informed taxpayers that the Agency's level of service to taxpayers is likely to decline,

New ABLE accounts are now available

The Tax Increase Prevention Act of 2014 that was signed last December mainly affected the year 2014 as it extended for that year only some 50 tax breaks

Oops. I Wish I Knew That

Here are five tax topics that seem innocent but can cause problems if not handled correctly.

Every new business needs a record system

Many small start-up businesses are off and running before any record system has been set up. There is money deposited into the new business checking account, some from invested funds and some from sales. Money has been paid out for equipment and supplies, some by check and some by cash out of pocket or from sales receipts.

End of January Tax Tips...

You need not make the January 15 quarterly estimate for 2014 if you file your 2014 tax return and pay taxes due by February 2, 2015.

February 2 is the deadline for employers to provide 2014 W-2s to employees.

Don't forget about the nanny tax!

A good domestic worker can help take care of your children, assist an elderly parent, or keep your household running smoothly. Unfortunately, domestic workers can also make your tax situation more complicated.

Update your beneficiary designations

Who have you designated as beneficiaries for your insurance policies and retirement accounts? If you can't remember, you're not alone. But it's worth checking. If you make the wrong decision, it could affect who inherits those assets. In some cases, it could also change the taxes your beneficiaries will pay and the value they'll receive. Here are some key facts about beneficiary designations.

What are they?

1099s for lawsuit settlements.... 

This is a question we are ask this time of year, so here are some Quick guidelines:

Should you have a business buy-sell agreement?

What will happen to your business if you die, retire, or become disabled? If you are the owner of a small business, you need a means for the transfer of that business in the event something happens to you. With a "buy-sell" agreement, you are able to plan for many contingencies over which you would otherwise have little control. A buy-sell agreement should establish a price for the business and the method of succession.

Homeowners: Don't make these common insurance mistakes

Catastrophes, thefts, natural disasters, accidents, fires – they happen. If such misfortunes strike, a well-researched and up-to-date homeowner's insurance policy can keep your family's finances afloat during trying times. Proceeds from a homeowner's policy can provide necessary funds to replace your house and belongings. A good policy can also protect against unexpected liabilities. If you're considering a new homeowner's policy (or already have one), watch out for some common pitfalls, including the following:

Foreign Earned Income Exclusion

As a U.S. citizen or resident working abroad, you may be able to exclude from income all or a portion of your foreign earnings.

To claim the foreign earned income exclusion, your tax home (the general area of your main place of business, employment, or post of duty) must be in a foreign country throughout the period

Reasons to File Your Taxes Early

While late changing tax laws make it impossible to file your income tax return prior to January 20^th this year, there are a number of reasons to file your return as soon as possible. Here are five of the most common:

Reporting Interest on U.S. Savings Bonds

If you recently purchased U.S. savings bonds and wish to know how you must report the interest income on those bonds...

If you use the cash method of accounting, as most individual taxpayers do, you generally report the interest on U.S. savings bonds when you receive it. However, you report the interest on series EE, series E, and series I bonds in either of the following ways:

A reminder about the home-sale gain exclusion for those in nursing homes.

Not all "income" is taxable

There are several sources of revenue that are not subject to income tax.

Here are the most common sources of money that are not taxed on your federal income tax return:

Make retirement plan contributions early

With retirement plan contributions, it's the early bird who maximizes tax-deferred earnings.

Mortgage Interest Deduction OK for Non-Homeowner

I thought some readers of my blog might be interested in this fairly common topic, for which I did some research.  I see if commonly where a parent buys a home in their name, and more improtantly, using their credit, the a child lives in the home and makes ll the mortgage payments.  Typically, a non-owner cannot take the deduction for the mortgage interest paid and real estate taxes... this discusses the basis of law for which this deduction for the child may be possible...

1099 Preparation Reminder!

Form 1099s must be filed by businesses each year.

Here is a quick look at 2015 tax rates and their associated income levels. Use this information to help prepare for your tax situation this year. Using your 2014 tax information, you can plan for your tax obligation next year starting now.

Don't forget that tax payers in the higher income levels are also subject to an additional .9% Medicare surtax as part of the Affordable Care Act. This will impact those with incomes over: