The IRS has announced employees will not be taxed when they donate their vacation, sick, or personal leave in exchange for employer cash contributions to qualifying charitable organizations providing relief to the victims of Hurricane Sandy. Additionally, employers will be able to deduct 100 percent of the contributions and will not be subject to any charitable contribution limits.
In spite of pervasive 1099 and W-2 reporting requirements, the US income tax system for most small businesses is still largely an honor system. According to IRS studies, this segment of taxpayers account for approximately 84% of the $450 billion estimated tax gap. As a result, the IRS continues the push to increase 1099 reporting to try and whittle away the large amount of unreported or underreported income among small businesses.
This push can clearly be seen in the question […]
Yesterday, the IRS announced the annual inflation adjustments for 2013. Here are a few highlights:
The annual gift tax free exclusion for gifts increased to $14,000 from $13,000.
The amount which is used to reduce net unearned income reported on a child’s return that is subject to the “kiddie tax” increased to $1,000.
The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), 457, or the federal government’s Thrift Savings Plan increased to $17,500 from $17,000.
The […]
Tuesday, September 25
1:00PM
Register Here
Bond Beebe’s Family Business Team Members Joel Susco and Geoff Brown along with tax specialists Jay Reddersen and Eric Fletcher will review some of the most common questions and issues regarding potential changes to estate and gift tax law and the family business.
This Webinar, moderated by tax specialist Brian Wynne, will address:
Current estate and gift tax rules and regulations;
Threats to the estate tax;
Wealth transfer issues and stakeholder ramifications; and
Strategic opportunities for wealth […]
Glenn Bailey, CPA
Required Minimum Distribution (RMD) planning for those who are turning 70 ½ in 2012.
If you have a 401(k) or traditional IRA plan and are turning 70 ½ this year you are now subject to the RMD rules. These require you to take at least a minimum distribution from your plan based on its balance. The law says the distribution must be taken by April 1st of the year after you turn 70 ½. While sometimes it makes […]
Lately every time I open up my e-mail I am getting a forwarded e-mail from a friend or family member about the tax changes that are coming and how everyone is going to end up paying more money to Uncle Sam. None of these e-mails ever address the most important question we need to ask. What can we do to prepare for these changes?
To start with we need to know what we should not be doing. The worst thing […]
Sean Urbany, CPA
On July 30, 2013, District of Columbia Mayor Vincent Gray signed the “Fiscal Year 2014 Budget Support Emergency Act of 2013.” Part of this legislation, the Out-of-State Municipal Bond Tax Repeal Emergency Act of 2013, repeals the 2011 law which required interest income from out-of-state municipal bonds acquired after January 1, 2013 to be included in determining DC taxable income for individuals, estates, and trusts.
Due to this new legislation, there will be no change from prior years […]
The District of Columbia has enacted legislation to require that, beginning with the 12-month period ending September 30, 2012, any employer required to file a District withholding return, but not required to collect and remit sales taxes, must file an annual use tax return. The annual use tax return is due October 20, 2012.
On the use tax return you must report the cost of all personal property and taxable services used or consumed by you in DC on which […]
The Facts about Medicare Contribution Tax on Unearned Income and the “Home Sale” Exclusion
There has been a great deal of misunderstanding and misinformation circulating with regards to elements of the health care reform legislation passed in 2010. In particular, there has been a rash of internet stories and chain emails purporting that the legislation includes a 3.8% “real estate tax” that would apply to the sale of a principal residence. Although there have been no changes to the rules […]
Posting by Billy Thomas
Well, the truth of the matter is self-employed individuals have been celebrating since 2010. However, it was only recently that the IRS published Chief Counsel Advice legitimizing a business deduction of medicare premiums paid for self-employed individuals. Under CCA 201228037, all of the medicare parts are permissible as medical care insurance as described in IRC 162(I) and therefore are deductible.
The memorandum supports the deduction for not only the self-employed individual, but allows the deduction for premiums […]
