New tax legislation has brought greater certainty to year-end planning, but has also created new challenges. The number of changes made to the Tax Code and the opportunities these changes bring may seem overwhelming. However, early planning will help you to maximize your potential tax savings and minimize your tax liability. (more…)
The IRS makes a distinction between what may be deducted by an active business and what may be deducted by an investor, and clearly favors the former. Nevertheless, you may still be pleasantly surprised by the items that may be legitimately deducted in connection with investments. (more…)
In recent years, end of year tax planning for businesses has been further complicated by uncertainty over the future availability of many tax incentives. The 2013 year-end is no different. In the early hours of January 1, 2013, the Senate passed the American Taxpayer Relief Act of 2012, which permanently extended the so-called Bush-era tax cuts. However, other popular provisions were only extended through 2013. Therefore, 2013 tax strategies include concerns over expiring provisions. But 2013 is also unique due to changes that are affecting businesses. (more…)
The IRS distinguishes between dues paid to clubs, which often are not deductible, and dues paid to professional organizations, which are often deductible.
Generally, you cannot deduct dues paid to social, athletic, sporting, airline, hotel, and luncheon clubs. The IRS generally views these organizations as providers of entertainment for their members. (more…)
If you’re like most Americans, you know just about how much of a refund you expect to receive from the Internal Revenue Service this upcoming tax season—and you’ve probably already got a few ideas on how to spend it. But this year, those Amazon shopping binges or new car stereos might need to wait a bit longer than in previous years. The IRS announced in October that they likely won’t be able to begin processing returns on time this tax season.
According to Danny Werfel, acting IRS Commissioner, the original date the IRS would begin accepting income tax returns in 2014 was set for January 21. But, thanks to the third-longest US government shutdown in history this October, the IRS is behind on their preparation work for the 2014 tax season. The delay is expected to last one or two weeks, meaning the IRS won’t accept returns until January 28 at the earliest, and possibly as late as February 4. The delay is blamed on the 16-day government shutdown, which almost completely halted all IRS functions, including testing and preparation of the processes and systems needed to handle the large volume of tax returns processed each year. According to Werfel, some one million items were already in-process when the shutdown began, and during the shutdown the IRS received more than 400,000 pieces of wholly new correspondence—correspondence that largely went untouched until the shutdown was resolved. Add the information in-process to the new information, and the testing and preparation for the upcoming tax season, and the IRS has a serious back-log to deal with. For you, this means you can’t submit your return as early as you might like, which means you can also expect a one- to two-week delay in receipt of your refund as well.
The IRS is expected to announce a firm date they’ll begin accepting returns this month, so keep your eyes peeled for that announcement. In the meantime, remember that regardless of what day the IRS chooses to begin accepting returns, your return is still due April 15 unless you file for an extension.
Are you harvesting your tax losses? You should be. There’s not much that’s more disappointing than leaving tax losses on the table unnecessarily. With this article, we’ll help you harvest those losses. (more…)
Do you have children? Are they on your payroll? If they’re not, and if the situation is right, you may want to hurry and get your children on the payroll. Do you give money to your parents or other relatives? If so, keep reading. (more…)
Do you need a new or replacement vehicle? To achieve any purchase benefit from a vehicle this year, you need (before midnight on December 31) to both own the vehicle, and have placed the vehicle in service for your business.
Ready to take the plunge? Here are how tax matters are handled for the various vehicles you may be looking at. (more…)
Your retirement plans and IRAs may be among the largest, if not the largest, asset that you have. Understanding the basic tax rules and then planning your distributions to meet your personal financial and estate planning objectives is essential. We can explain those rules and provide some strategies for you to consider as part of your overall tax plan. (more…)
Strictly speaking, personal retirement and medical expenses are not a business expense. But with a little planning and some specific requirements, your company can be deducting these expenses on your behalf. (more…)