BLOG
Bringing Your Accountant Into Your Lawsuit
The tax treatment of a legal settlement can vary widely depending on the nature of the suit and the structure of the settlement. One recent personal injury case was settled for over $100K, and, after taxes and attorney fees, the recipient was able to retain less than...
Details of tax reform legislation revealed
Details were revealed yesterday on the new tax reform legislation. The bill features new tax rates, a lower limit on the deductibility of home mortgage interest, the repeal of most deductions for individuals, and full expensing of depreciable assets by businesses....
Chop Shop Your Building for Tax Savings
When a repair shop replaces a part in a car, they remove the old one. It’s no longer of any use in its current state, and it certainly isn’t left in the vehicle, bolted up next to the new one. Due to some changes in the law a few years ago, real estate owners are...
Medical Savings Accounts
So, you’re a parent and your child needs braces. How do you go about getting a discount on the money you use to pay for this expense? Let’s use an example of a taxpayer with an effective tax rate of 20% and braces for their child costs $6,000, using tax free money...
Check Withholding Now to Avoid Surprises at Tax Time
The federal income tax is a pay-as-you-go system. Employers generally withhold tax from workers’ wages. Taxpayers also often have taxes withheld from certain other income including pensions, bonuses, commissions and gambling winnings. People who do not pay tax through...
Nexus, Sales Tax, Sourcing Sales and the Confusion
Most business owners understand the term “Nexus” as having enough contact with a state before that state can require a business to collect its tax or otherwise subject it to its taxing authorities. Without “Nexus” there is no obligation to file a return with that...
When a Home Sale is Taxable, Part 2
If fortunate enough to sell a home for more than the total gain exclusion, there is also a need to know how much the total gain is. Determining the sale price is easy, that’s the sale price listed at the top of the purchase and sale statement or the HUD-1 form...
When a Home Sale is Taxable
Even with the last significant change going back to 1997, the rules for when a personal residence can be sold tax free are often misunderstood. Selling a home isn’t a daily occurance for most people and it’s not uncommon for the prior rules to have been in place the...
Security Alert: New Two-Stage E-mail Scheme Targets Tax Professionals
The Internal Revenue Service, state tax agencies and tax industry leaders are warning tax professionals to be alert to an email scam from cybercriminals posing as clients soliciting their services. A new variation of this phishing scheme is targeting accounting and...
Composite Tax Returns
When it comes to filing tax returns, doing business in multiple states can cause headaches for a pass-through business and its owners. Not only does the business have to file taxes in the states it does business in, but each owner needs to file individually in those...