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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.

IRS CIRCULAR 230 DISCLOSURE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this document is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter that is contained in this document.

 

IRS interest rates for 3rd Quarter

Created on Tuesday, 17 May 2011 07:07
Written by Kelly Lopez

IRS  just announced that interest rates for the calendar quarter beginning July 1st, will be the same as in the previous quarter. For more information, including rates,  please follow the IRS link below:

http://www.irs.gov/newsroom/article/0,,id=239473,00.html

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What will happen to the FUTA surtax

Created on Tuesday, 17 May 2011 01:14
Written by Donna Buck

Since 1976 there has been a 0.2% FUTA surtax.  Currently, the gross federal unemployment tax rate that employers pay on the first $7,000 of wages paid to each employee is 6.2%, which is made up of the 6% permanent tax and 0.2% temporary surtax. 

 

The 0.2% temporary surtax is currently set to expire on June 30, 2011.

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Bonus Depreciation Clarification Issued by the IRS

Created on Wednesday, 20 April 2011 05:53
Written by Donna Buck
The Congress was very generous when it granted 100% bonus depreciation for qualifying property placed in service after September 8, 2010 and before January 1, 2012.  However, if you did not want to take the 100% bonus depreciation, your only other option (according to the IRS) was to elect out of bonus depreciation and take the regular depreciation on the asset.  This was reinforced in the Form 4562 (Depreciation and Amortization) instructions when they cautioned taxpayers that “if you elect out of the 100% special depreciation allowance . . . the property does not qualify for the 50% special depreciation allowance”. 
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New 1099 Rules Repealed! Small Businesses and Landlords Breathe a Sigh of Relief!

Created on Wednesday, 20 April 2011 02:22
Written by Donna Buck

On April 14, 2011 President Obama signed into law, legislation to repeal the new Form 1099

information reporting rules.  Under the now repealed rules, businesses would have been

required to issue a Form 1099 to corporations for goods and services that reach $600 or more

per year to each vendor.  And, landlords would have been required to issue a Form 1099 to a

vendor for services (such as, plumbing, lawn maintenance, rental management, accounting,

etc.) when total payments reached $600 or more in a year.  These new reporting requirements

have now eliminated, so you don’t need to worry about them any longer.

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LANDLORDS BEWARE: THE IRS IS WATCHING YOU!

Created on Friday, 18 March 2011 00:41
Written by Eric Fletcher

In the near future the IRS will likely be performing more examinations of individual income tax returns reporting rental real estate activity.  On March 9, 2011, the Treasury Inspector General for Tax Administration (TIGTA) published the results of an internal audit to identify ways to improve enforcement activity in the area of rental real estate income.  The audit was undertaken in response to an August 2008 Government Accountability Office (GAO) report that found, “at least 53 percent of individual taxpayers with rental real estate activity for Tax Year 2001 misreported their rental real estate activity, resulting in an estimated $12.4 billion of net misreported income.” 

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Deducting Rent Paid to a "Related Party"

Created on Sunday, 06 March 2011 04:34
Written by Jobe Dupre'
Most of the time, rent paid for the use of business property is deductible. In fact, the tax code doesn't even specifically state that rent paid must be “reasonable,” (a tax term applied to most deductions). However, transactions between “related parties” come under closer scrutiny by the IRS because of the potential for abuse. If rent paid to a related party is found to be “unreasonable,” the deduction will be reduced. In many such cases, the rent found to be excessive is treated as a distribution or a gift.
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Can You Deduct your Club Dues?

Created on Monday, 28 February 2011 09:15
Written by Jobe Dupre'
Generally, club dues are not tax deductible as a business expense.
This general non-deductible rule covers dues paid to country clubs, golf clubs, business luncheon clubs, athletic clubs, and even airline and hotel clubs. However, you can still deduct 50% of the cost of otherwise allowable business entertainment, even though the dues you pay are nondeductible. For example, if you have business dinner with a customer at your country club, 50% of the cost of the dinner is deductible as a business expense.
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Updates in Washington, DC, Maryland and Virginia

Created on Thursday, 17 February 2011 06:39
Written by Billy Thomas

District of Columbia:  Reports have shown that E-filing your return typically results in a quicker refund.  Now DC is allowing individual taxpayers the opportunity to track his or her refund online.  Follow the link to check your refund status: Refund Status Inquiry

 

Maryland:  The Comptroller of Maryland has announced a ‘Tax Free’ Weekend.  Well tax-free for those individuals and entities purchasing qualified energy efficient equipment.   Qualified energy efficient equipment includes equipment with the ‘energy star’ product seal (refrigerators, heat pumps, furnaces, air conditioners, etc.).  Purchases of ‘energy star’ products between February 19, 2011 through February 21, 2011 will NOT be subject to the 6% sales tax.

 

Virginia:  Similar to Maryland, Virginia will have a qualified energy efficient equipment sales tax holiday between October 7, 2011 and October 10, 2011.  Conversely, purchases of this nature will only be exempt from sales tax if the equipment is purchased for noncommercial home or personal use.  


In addition, Virginia is following suit with the federal government.   Virginia has again passed legislation for Fixed Date Conformity through 2010.  Fixed Date Conformity simply means in general, the Commonwealth will comply with the current federal tax code.

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More Articles...

  1. Virginia Corporate & Passthrough Tax Returns due 4/15
  2. A Second Chance at Voluntary Disclosure of Foreign Assets
  3. Progress on Repeal of Expanded 1099 Reporting
  4. The Residential Energy Property Credit for 2011

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