Two new taxes in 2013
Wednesday, December 12th, 2012
Two new taxes are scheduled to take effect in January 2013. These taxes were instituted by the Affordable Care Act to help pay for health care reform. Congress may change these taxes as they negotiate ahead of the tax rate and sequestration deadlines at the end of 2012 – the so-called “fiscal cliff”. Few politicians […]
Read More »Summer day camp may net tax credit
Friday, July 6th, 2012
Considering sending your children to camp this summer? You may be able to offset the cost with a tax credit. Here are some tips, courtesy of the IRS: During the summer many parents may be planning the time between school years for their children while they work or look for work. The IRS wants to […]
Read More »5 tax myths (part 2)
Thursday, June 7th, 2012
Last time, we talked about tax myths regarding investments such as your house, business assets, and financial instruments. The mantra, “Don’t let the tax tail wag the dog,” applies to many decisions. Tax impact should be a consideration, but not the most important factor in a decision involving your money. Here are a couple more […]
Read More »5 tax myths (part 1)
Wednesday, June 6th, 2012
We got a call recently from a client asking if he should finance an equipment purchase to lower his tax bill. First, I commended him for thinking ahead about taxes and for calling us for feedback about his financial decision. Then I asked him if it made good business sense for him to do this […]
Read More »Bathroom as home office?
Thursday, August 18th, 2011
The Tax Court ruled that a taxpayer cannot claim his bathroom as a home office in Bulas v. Commissioner, T.C. Memo. 2011-201 (Aug. 17, 2011). (Insert your own joke or mental image here….) The taxpayer had a home-based business, a tax practice for which he used one bedroom of his home as an office. He […]
Read More »Plan now to save taxes
Tuesday, August 9th, 2011
Summer is a good time to talk with us about planning to save taxes next year. We have more time to help you take stock of the first half of the year and explore options before it’s too late in the year for them to make a difference. Among those options: Consider equipment purchases, to […]
Read More »Minimize capital gains tax
Thursday, March 31st, 2011
When you sell an asset for more than your investment in it, the IRS says you must pay tax on the difference, called capital gain. For some years, the tax rate on such gains has been lower than regular rates if the asset is held for a long term (currently, more than one year). Hence […]
Read More »Next IRS target – generous relatives
Wednesday, March 30th, 2011
Generous relatives may be the next targets of IRS hunting expeditions. The IRS has asked a federal judge for a “John Doe” summons on the California Board of Equalization to force the board to turn over records of property transfers for little or no consideration. They are looking for people who have not paid gift […]
Read More »Plan to maximize business tax incentives
Friday, March 18th, 2011
Congress provided business tax incentives in 2010 in the Small Business Jobs Act and the Tax Relief Act. Strategically applying these business tax incentives together can be lucrative to businesses that are in a position to use them. We’re busy this time of year preparing tax returns for our clients. But we’re not too busy […]
Read More »Landlord? Get ready for 1099
Monday, February 7th, 2011
If you have property that you rent to others, the IRS says you are engaged in a trade or business beginning January 1, 2011. This means you become subject to Form 1099 rules. If you pay an individual or company (not a corporation) more than $600 in the calendar year, you must report these payments […]
Read More »