HOME OFFICE DEDUCTION SIMPLIFIED FOR 2013

Glenn Bailey, CPA

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 […]

January 17, 2013 Accounting, Family Owned Businesses Read more...

W-2 REQUIREMENTS FOR COMPANIES PER AFFORDABLE CARE ACT

Brian Wynne, CPA

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.

 

The Patient Protection and Affordable Care Act requires employers who issue 250 or more W-2’s in a year to report the aggregate cost of coverage under an employer-sponsored group health plan […]

January 16, 2013 Accounting, Tax Read more...

Theory of Relativity: Best Hiring Practices for Family Businesses (Part 1 of 2)

Posting by Geoffrey D. Brown, CPA

By the very term, it is expected that a “family business” always has more than one family member involved in the business.  But just being related doesn’t necessarily make one a good employee of a family business; and all family members are not in fact created equal (except perhaps for identical twins).  How should a family business approach hiring employees in the start-up period and ongoing for the best chance at success?  This two-part […]

January 16, 2013 Family Owned Businesses, Human Resources Read more...

Understanding Employee Benefit Plan Investments: A Guide for New Trustees

Larry Beebe, CPA

New trustees can be overwhelmed by the knowledge that must be quickly acquired to function effectively in their new roles.  Investments is one area that trustees must know well, but the average new trustee may not have the detailed background and knowledge necessary to manage the investments in an employee benefit plan.

In the months to come, we will be posting an in-depth series on investments to assist new trustees in their fiduciary duty of managing plan assets.  […]

January 16, 2013 Accounting, Benefit Plan Accounting Read more...

Tax Filing Issues for Same-Sex Couples in MD, DC and VA

Posting by Jobe Dupre

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.

Federal Filing:

The Federal Defense of Marriage Act (DOMA) restricts the term “marriage” for federal purposes to the […]

January 15, 2013 Tax Read more...

FISCAL CLIFF NOTES: ANALYSIS OF THE AMERICAN TAXPAYER RELIEF ACT OF 2012

Congress passed the American Taxpayer Relief Act of 2012 (“The Act”) on January 1st, 2013 to avoid the much-discussed “fiscal cliff,” and the President quickly signed it into law on January 2nd.  The Act prevented drastic tax increases on millions of Americans, but several increases were still enacted.  Here’s how you and/or your business might be affected:

Download a PDF Overview
Individual Tax Provisions
Though there were several big changes to the tax code in the Act, they were all tied to […]

January 15, 2013 Accounting, Tax Read more...

Fiscal Cliff Averted: Estate and Transfer Tax Certainty

Posting by Billy Thomas

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.).

There are three main provisions from the American Taxpayer Relief Act of 2012 for Estate […]

January 14, 2013 Tax Read more...

Four Tips for Preparing the Next Generation of Leadership

Posting by Geoffrey D. Brown, CPA

When considering how to prepare the next generation in a family business, it is necessary to focus not only on those who might work in the business and become part of the management team, but also those who may only be shareholders and not even work in the business.  Below are four tips, or keys, for preparing the next generation for leadership that apply to those who are going to actively participate in the […]

January 11, 2013 Family Owned Businesses Read more...

New 401k Provisions in the Fiscal Cliff Deal: Converting to a Roth 401(k)

Scott Price, CPA

In addition to the more publicized tax hikes and provisions included within the Fiscal Cliff Deal (formally known as the American Taxpayer Relief Act of 2012) there is also an interesting provision for 401(k) plans.  Specifically, the bill has removed certain restrictions regarding the conversion of traditional 401(k) accounts to Roth 401(k) accounts, making it significantly easier for employees to move their retirement assets.

Previously, one of three scenarios had to occur to qualify for a conversion:

Change […]

January 11, 2013 Accounting, Benefit Plan Accounting, Wealth Management Read more...

It’s Not Too Late to Make Tax-Free IRA Distributions to Charity for 2012

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 […]

January 10, 2013 Tax Read more...