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...

FISCAL CLIFF AVERTED: 2012 TAXPAYER RELIEF ACT IMPACT ON BUSINESS

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:

Additional First Year (Bonus) Depreciation:  Bonus depreciation has been extended for qualified property acquired and placed in service prior […]

January 8, 2013 Accounting, Tax Read more...

Fiscal Cliff Averted: Summary of Changes Resulting From the American Taxpayer Relief Act of 2012

Posting by Kelly Lopez

The American Taxpayer Relief Act of 2012 was passed by both The Senate and Congress on January 1st, thus averting the now infamous “Fiscal Cliff,” which would have caused major tax hikes to take place as well as many favorable tax breaks to expire.

Here are some of the highlights of the Act:

Individual Income Tax Rates:  For the years beginning after 2012, a new 39.6% rate will apply to individuals with income above $400,000 for single […]

January 3, 2013 Tax Read more...

SCALING THE FISCAL CLIFF: A GLIMPSE OVER THE LEDGE

Scott Reddersen, CPA

As signs of progress are surfacing in an effort to avoid the Country’s dive off the “fiscal cliff,” it’s a good time to take a look at which tax issues are being negotiated as the ledge quickly approaches.  The tax provisions set to expire on December 31, 2012 are comprised of the following key components:

Bush Tax Cuts

Alternative Minimum Tax (AMT) Patch
Temporary Payroll Tax Cut
Tax Extenders

The most significant element of the fiscal cliff from a tax […]

December 18, 2012 Accounting, Tax Read more...

A TAX BENEFIT FOR PROFESSIONAL ATHLETES’ FINES?

In recent years, fines imposed by various professional sports teams and organizations on professional athletes have become commonplace. But what are the tax implications of these fines paid by players? Professional athletes may be able to claim these fines on their Schedule A as a miscellaneous deduction for unreimbursed employee expenses subject to the 2% adjusted gross income (AGI) floor.

According to Internal Revenue Code (IRC) §162, a miscellaneous deduction is allowed for “ordinary and necessary expenses paid or incurred […]

December 12, 2012 Accounting, Tax Read more...

Harvest Festival: Capital Gains at Year-End

In the spirit of the Harvest Festival, let’s take a closer look at the concept of Tax-Loss Harvesting as it relates to the current tax environment and the uncertain future.  We can begin with the foundation of the current tax environment:  in general, the markets have rebounded since the 2008 financial collapse leaving many investors with more unrealized capital gains (appreciation) as each year passes.  Net long term capital gains for tax year 2012 will be taxed at 15% […]

December 3, 2012 Tax Read more...

Harvest Festival: Capital Gains at Year-End

In the spirit of the Harvest Festival, let’s take a closer look at the concept of Tax-Loss Harvesting as it relates to the current tax environment and the uncertain future.  We can begin with the foundation of the current tax environment:  in general, the markets have rebounded since the 2008 financial collapse leaving many investors with more unrealized capital gains (appreciation) as each year passes.  Net long term capital gains for tax year 2012 will be taxed at 15% […]

December 3, 2012 Tax Read more...

2013 STANDARD MILEAGE RATES ANNOUNCED

Brian Wynne, CPA

Today the IRS announced the standard mileage rates for 2013.  They are 56.5 cents per mile for business miles, 14 cents per mile for charitable miles, and 24 cents per mile for medical miles.  The business and medical rates are a one-cent per mile increase from 2012, but the charitable rate remains unchanged.  These new rates are in effect on January 1, 2013.

November 21, 2012 Accounting, Tax Read more...

THE 2 NEW “MEDICARE TAXES” FOR 2013

The health care reform law added 2 new taxes that take effect in 2013. It is important to know the difference as they will affect different taxpayers in different ways.

.9% Additional Tax on Wages over 200k

An individual who earns more than 200k per year in wages (250k if married) will be subject to an additional tax calculated on your tax return on the amount by which your wages or earned income is over this limit.  There is a withholding […]

November 13, 2012 Accounting, Tax Read more...

VIRGINIA ANNOUNCES CHANGES TO ISSUING TAX REFUNDS

Virginia will begin to issue tax refunds via debit card or direct deposit only starting with refunds issued in 2013 for the 2012 tax year.  Virginia is making the change in hopes of saving money by reducing check printing and mailing costs.  The switch to debit cards will be more secure than mailing a check since it will be protected by federal and state banking laws.  It can also only by activated by using the holder’s personal information (SSN […]

November 9, 2012 Accounting, Tax Read more...