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Tax Blog
“Taxing” is a word synonymous with “onerous” and “wearing.”  Bond Beebe, Accountants & Advisors, have created a user friendly blog called “It’s Taxing” to inform and educate our clients and business associates on timely topics related to tax, estates, accounting and finance.  We hope our blog answers your questions and alleviates the heavy burden and anxiety related to understanding complicated tax laws and related matters. 

 

Hiring your Children in your Business – It’s Not So Taxing

hiring-your-kidsIf you own a business, employing your child can be a great opportunity to teach valuable lessons about earning, saving and hard work. It is also an excellent tax-savings strategy for you and your child. However, before you bring your college kid on your payroll for the summer, there are a number of regulations and savings strategies to keep in mind.

Maryland State & County Tax Credit Ruling - Wynne v. Comptroller Update

wynne v comptrollerThe U.S. Supreme Court has agreed to hear the case of Md. Comptroller of Treasury v. Wynne, (U.S., No. 13-485, cert. granted, 5/27/14) on whether a taxpayer’s resident municipality can tax all of a resident's income or if it must provide a credit for taxes that person paid to other states. This case specifically addresses Maryland’s denial of credits against the MD county income tax; full details are available in our previous post on this case.

IRS Announces New Payment System: IRS Direct Pay

irs-logoIn an effort to provide taxpayers with more service options, the IRS has announced the start of a new web-based based payment system called IRS Direct Pay. Individual taxpayers filing 1040 return series can use IRS Direct Pay 24 hours a day, 7 days a week to pay any balance due on their tax returns or make estimated payments without incurring any additional fees or having to pre-register.

Some of the key features provided by IRS Direct Pay include:

  • Identity verification using information from prior year tax return
  • Instant confirmation that the payment has been submitted
  • 30-day advance payment scheduling
  • Payment rescheduling or cancellation
  • Payment status search

While the current system is limited only to payments for 1040 returns, the IRS has plans to expand the service and offer additional options for users and will most likely add additional payment types in the future. Other future expansions include payment confirmations via e-mail and a login option that would allow users quick access or return visits.
For more information, check out the IRS’ News Release and FAQ for more information.

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A Change to the IRA Rollover Rules

ira-rolloverA Tax Court ruling in January 2014 (Bobrow; TC Memo 2014-21) changed long-standing IRS rules defining when and how often you can rollover money tax-free from one IRA to another.

A “rollover” is defined here as withdrawing money from an IRA and then re-depositing it in the same or a different IRA within 60 days of the original withdrawal. These are considered tax-free transactions and are generally used to change the investment custodian or manager. They are occasionally used as a short term loan. You are allowed to do this once in a 12 month period.

Update: Maryland Estate Tax Exemption to Increase

marylandOn May 15, Governor O’Malley signed into law a bill that will gradually increase Maryland’s estate tax exemption to eventually match the federal exemption, which is indexed for inflation. With these increases, next year Maryland’s exemption will be $1.5 million and will continue to increase until 2019, when it is set to recouple with the federal exemption, which in that year is projected to be $5.9 million.

Full details are available in our previous post on the topic. This is indeed good news for Maryland residents and similar conversation on the estate tax exemption is underway across the border in DC.

Reporting Foreign Assets: Answers to Your Top Questions

fatca-webWith the June 30 deadline approaching for filing FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), we’ve posted over at JDKatz’s "The Joy of Tax Law" blog, providing a number of details on the requirements for reporting foreign assets. Specifically, we answer the following questions:

  • What is FATCA and what do I need to disclose?
  • What is a foreign financial asset?
  • What forms do I have to file for FATCA?
  • What happens if I don’t report foreign assets?

For the full post, visit http://joyoftaxlaw.com/2014/05/06/reporting-foreign-assets-answers-to-your-top-questions/. If you have questions about your specific tax situation, please don’t hesitate to This email address is being protected from spambots. You need JavaScript enabled to view it. . We’re happy to talk to you about the details as they apply to your assets.

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Looking for more tax updates?  Follow us on Twitter, connect to Bond Beebe on LinkedIn, be our Facebook friend, connect with us on Google+, visit our Scoop.It Magazine, or watch a video on our YouTube Channel.

Sharing Your Gambling Winnings with Uncle Sam

gambling-taxesIf you placed bets on this past weekend’s Kentucky Derby, you are either celebrating your good fortune or kicking yourself for making the wrong bet. Either way, as with most things in life, there are tax implications. Yes, that’s right, your gambling winnings are considered taxable income. But, if you lost, take heart – you may be able to deduct your losses.

Estate Tax Exemption Likely to Increase in Maryland

marylandLate last week, the Maryland Senate passed a measure that will gradually raise Maryland’s $1 million estate tax exemption to match the much-higher federal exemption. The measure has already passed the House. If signed into law by Governor O’Malley, in 2015 the exemption will be $1.5 million and in 2016, it will be raised to $2 million. The increase will continue to rise to $3 million in 2017 and $4 million in 2018 before matching the federal exemption in 2019. The federal exemption is currently at $5.34 million for 2014, and indexed to inflation each year.

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