To prepare for tax season, here are a few things you will need to keep in mind. Should any of these circumstances apply to you. Federal and State Voluntary Withholding – If you have had a change of address in…

Moving Expenses Generally, you may be able to exclude from income the value of services and reimbursements received from an employer for moving expenses. If you were not reimbursed, you may be able to deduct expenses you incurred when you…

Victims of Credit Card Fraud or Identity Theft 1) Report the crime to the police immediately. Get a copy of the police report or case number. Credit card companies, the bank, or insurance companies may ask for the reference to…

Traditional IRA A traditional IRA is any IRA that is not a Roth IRA or a SIMPLE IRA. Any individual can set up a traditional IRA if he or she receives taxable compensation during the year and is not age…

Limited Liability Companies (LLCs) A limited liability company (LLC) is a business entity organized in the United States under state law. Unlike a partnership, all of the members of an LLC have limited personal liability for its debts. An LLC…

The Tax Cuts and Jobs Act is the biggest federal tax law change in over 30 years. Below are significant changes affecting excess business losses and net operating losses (NOLs) for noncorporate taxpayers. Note: Except where noted, the changes are…

Strategize now to position yourself for savings. Spring is the ideal time for tax planning. Consider these ideas for lowering your 2018 federal tax bill. How much can you direct into retirement accounts? Contributions to various employer-sponsored retirement plans are…

Limit on Taxes Paid Effective for 2018, the itemized deduction for state and local taxes is limited to $10,000 ($5,000 MFS). State and Local Income or General Sales Taxes A taxpayer can elect to deduct either state and local sales…

The Tax Cuts and Jobs Act is the biggest federal tax law change in over 30 years. Below are significant changes affecting certain retirement and other savings accounts, such as ABLE and 529 accounts. Note: Except where noted, the changes…

Requirement to Have Health Insurance Nonexempt U.S. citizens and legal residents are required to maintain minimum essential coverage. Minimum essential coverage can include government-sponsored programs, eligible employer-sponsored plans, plans in the individual market, grandfathered group health plans, and other coverage…

Tax Treatment of Fringe Benefits The term “fringe benefit” refers to any benefit provided to an employee that is in addition to money. All benefits provided to an employee are taxable unless the law specifically excludes or defers tax on…

Business Use of Home Expenses Some expenses are deductible whether or not a taxpayer uses his or her home for business. Others are deductible only if the home is used for business. Deductible Regardless*             …

Business Financing— Don’t Intermingle Funds Intermingling Funds A common problem with single-owner and other closely-held corporations is an intermingling of funds. This occurs when a corporate shareholder uses his or her personal checking account for corporate deposits or payment of…

On-Demand Drivers On-demand drivers for ridesharing companies, such as Uber or Lyft, are not employees and are instead considered independent contractors for tax purposes. Being an independent contractor means you are self-employed. This means that the company is not withholding…

Same-Sex Married Couples—Tax Filing Rules On June 26, 2013, the U.S. Supreme Court ruled that Section 3 of the Defense of Marriage Act (DOMA) is unconstitutional because it violates the principles of equal protection (Windsor, U.S. Supreme Court, June 26,…

Foreign Bank and Financial Accounts If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, exceeding certain thresholds, the…

The IRS defines a home as any house, condominium, cooperative, mobile home, boat, or similar property that has sleeping space, toilet facilities, and cooking facilities. Some homeowners qualify for these deductions. Real Estate Taxes You can deduct real estate taxes…

Gift Tax There is no dollar limit on the amount that one person is allowed to give to another. Gift tax rules do not prohibit a donor from making gifts in excess of the annual exclu‑ sion ($14,000 for 2017)….

Farm Inventory and Accounting Methods Farm Accounting Methods Most businesses use either the cash method or the accrual method of accounting. Most small farming businesses use the cash method of accounting. This handout covers farm inventory and accounting methods Farm…

Tax Benefits A taxpayer who spends significant time in activities related to real estate may qualify as a “real estate professional,” which can provide tax benefits. Passive Loss Limits A passive activity is generally defined as a business activity without…

Representation Individual taxpayers who are under audit by the IRS may attend the audit in person without any assistance from a tax professional. However, this can be a danger-ous mistake. Although not officially stated, it is the job of an…

Exclusion of Gain Principal residence defined: A principal residence is the taxpayer’s main home, which is the home where he or she ordinarily lives most of the time. A taxpayer can have only one main home at any one time. Individual…

Divorce and Taxes Filing status: Filing status is based on your status as of December 31. If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year and…

Capital Gains and Losses Capital Assets Most property an individual owns and uses for personal or investment purposes is a capital asset. For example, a house, furniture, car, stocks, and bonds are capital assets. Noncapital Assets A capital asset is…

Charitable Organizations Qualified charitable organizations include nonprofit groups that are religious, charitable, educational, scientific, or literary in purpose, or that work to prevent cruelty to children or animals.   Examples of Qualified and Nonqualified Organizations Qualified Churches, mosques, temples, synagogues….

  When the Internal Revenue Service (IRS) believes to have uncovered an issue concerning your tax return, the agency will contact you through mail with CP series notice. It is to be noted that the IRS never emails or calls…

The popular perception about high net-worth (HNI) individuals is they employ a long list of tax experts who formulate strategies for tax evasion and guide them all the way. There is even a perception of these individuals paying less taxes….

Selecting a Business Structure and its Impact on Taxes   One of your more important business choices is the kind of legal structure which you must choose to define your company. This decision will not only affect the taxes you…

The constantly changing tax laws can be difficult to understand and remember. Most people may not have the time to go through every nuance and change, in-depth or may just miss out on it. This is where professional help can…

The government collects taxes to fund various projects that benefit the citizens, including infrastructure, health and education. These taxes are paid by individuals, as well as businesses of any scale. With a fiduciary income tax return, the income of an…