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“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.
The IRS has issued a clarification to IRS Notice 2013-8 as to the reporting of the 2012 retroactive adjustment to the tax-free exclusion of transit passes and transportation in a commuter highway vehicle on the 2012 fourth quarter Form 941.
The IRS has issued Notice 2013-8, which provides employers guidance on how to deal with the retroactive (part of the American Taxpayer Relief Act of 2012 passed 1/1/13) increase in the maximum monthly exclusion afforded employees from $125 to $240 for 2012. The increased exclusion is applicable to employer-provided transit passes and commuter highway vehicle (vanpooling) transportation benefits and puts them on par with the exclusion for qualified parking for tax year 2012 and 2013. Such benefits are excluded under Section 132(f)(2)(A) of the Internal Revenue Code.
The IRS has issued Rev. Proc 2013-13 which promises a much simpler way to claim the home office deduction. Beginning in 2013, a user of a qualified home office can elect to claim an expense of $5 per square foot of office space, up to 300 square feet total, instead of calculating the actual expenses. This $5 amount takes the place of utilities, cleaning, repairs, depreciation and any other expenses related to business use of the home deducted against the business income. Mortgage interest, property taxes and casualty losses are still allowed as itemized deductions on Schedule A, but are not allocated against business income. Other non-home office related business expenses are also still allowed and are unaffected by this election.
You may have new reporting responsibilities when filing your W-2’s this month. Employers sponsoring group coverage will have new reporting responsibilities according to the Affordable Care Act and the Internal Revenue Service. You may need to report costs associated with employer-sponsored health coverage on IRS Form W-2.
With Maryland being the latest state to recognize same-sex marriages and the tax filing season inching ever closer, same-sex couples should be aware of their rights and obligations when properly filing their tax returns. Since the laws and requirements are different for each taxing jurisdiction: Federal, Maryland, Virginia, and the District, this article will be broken up into four parts.
By now it is no secret; we have been saved from tumbling off the ‘Fiscal Cliff’ after Congress and the President passed the American Taxpayer Relief Act of 2012. Granted, the legislation came right down to the wire before an affirmative vote. We are now entering a time of increased certainty with respect to U.S. transfer taxes (estate, gift, generation-skipping transfer, etc.).
The 2012 American Taxpayer Relief Act extended the ability to make tax-free IRA distributions to charity until December 31, 2013 for qualified donors (age 70 ½ and older). These distributions, up to $100,000, are not treated as taxable income to the donor but are still counted towards the required minimum distributions (RMDs) for the year, as long as they are made directly to the charity. The best part of this is that qualified donors do not have to wait until the 2013 tax year to take advantage of this extension thanks to a pair of special elections:
As everyone has heard the past several days, the “Fiscal Cliff” has been averted with the passing of The American Taxpayer Relief Act of 2012. You’ve read so far about how individuals were impacted but what about businesses? Below is a listing of the some of the key developments from the act which will affect businesses in the next few years: