DEDUCTING RENT PAID TO A “RELATED PARTY”

Jobe Dupre’, CPA

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 […]

CAN YOU DEDUCT YOUR CLUB DUES?

Jobe Dupre’, CPA

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 […]

UPDATES IN WASHINGTON, DC, MARYLAND AND VIRGINIA

Billy Thomas, CPA

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, […]

VIRGINIA CORPORATE & PASSTHROUGH TAX RETURNS DUE 4/15

Brian Wynne, CPA

The Virginia Department of Taxation clarified on Friday that calendar-year corporate and passthrough entity tax returns are due Friday, April 15, 2011.  There was some confusion as the Federal and most states filing date was moved to Monday, April 18 this year, due to a holiday in Washington DC (Emancipation Day).  Virginia does not recognize this holiday as a legal holiday and therefore will not move it’s due date.

A SECOND CHANCE AT VOLUNTARY DISCLOSURE OF FOREIGN ASSETS

Brian Wynne, CPA

On Tuesday, February 8, 2011, the IRS announced another voluntary disclosure program giving taxpayers a second chance to report offshore assets.  The first program began in March of 2009 and allowed taxpayers six months to voluntarily disclose all offshore assets going back six years, offering the chance to avoid criminal prosecution and limiting penalties.  The penalties were 20% of the amount of foreign assets in the year with the highest value, plus all taxes, interest and a […]