What taxes on real estate are deductible? Many people will get out their end of year mortgage statement or Form 1098 and look for the “Real Estate Taxes Paid” line on the form and use that amount. However, depending on where you live this number may contain several non-deductible fees and assessments. In order to accurately determine the deductible taxes you paid you need the actual tax bill. The state of California is making an effort to educate property […]
Under current law, 2011 is the final year a charitable contribution can be made from an IRA, (by an individual age 70 ½ or older), directly to a qualified tax-exempt charity. This type of distribution is called a “qualified charitable distribution”. The distribution is not taxed to the donor, and counts towards fulfilling the required minimum IRA distribution amount (RMDs) that must be withdrawn each year.
If a “qualified charitable distribution” is made, no itemized deduction is allowed. However, since […]
Brian Wynne, CPA
The IRS has announced many cost-of-living-adjustments for retirement plans, social security tax and some other tax items.
The limits on contributions to retirement plans have been increased for 2012. Participants can elect to defer up to $17,000 (up from $16,500) into 401(k) plans. The “catch-up” contributions for participants over age 50 is still the same at $5,500. The total contribution for defined contribution plans has increased to $50,000 from $49,000, using a compensation base of up to $250,000 (up from $245,000). […]
Brian Wynne, CPA
In Announcement 2011-64, the IRS details an offer for settling potential worker classification issues. The IRS is offering employers a chance to reclassify workers as employees (as opposed to independent contractors) going forward. An employer who wishes to avail themselves of this settlement offer will pay 10% of the employment taxes (as calculated under IRC section 3509) that would have been due for the most recent tax year (if the worker had been classified as an employee), […]
Brian Wynne, CPA
In Announcement 2011-64, the IRS details an offer for settling potential worker classification issues. The IRS is offering employers a chance to reclassify workers as employees (as opposed to independent contractors) going forward. An employer who wishes to avail themselves of this settlement offer will pay 10% of the employment taxes (as calculated under IRC section 3509) that would have been due for the most recent tax year (if the worker had been classified as an employee), […]
Brian Wynne, CPA
First, the bad news. Effective October 1, 2011, DC residents with taxable income above $350,000 in a tax year will be subject to a new 8.95% tax rate on that income. This is up from a top rate of 8.5% on income over $40,000. This rate will be effective for 4 years only, then expire.
Now, the good news. The higher rate was implemented as an offset to pay for delaying the taxation of out-of-state municipal bond income. […]
Brian Wynne, CPA
UPDATE: August 5, 2011: Congress passed and the President has signed legislation that reinstates the taxes, retroactive to July 23, 2011. Therefore, passengers who purchased tickets before July 23, 2011 and traveled between July 23, 2011 and August 5, 2011 are not entitled to a refund of the taxes. The IRS plans to provide relief regarding taxes not otherwise paid or collected because of the lapse.
At midnight on July 22nd, 2011, the legislation mandating some of the […]
Glenn Bailey, CPA
As sure as the sun will rise in the morning, a phishing scam alleging to be from the IRS will appear in your e-mail box. Since most everyone has some dealing with the IRS and filing taxes, You are a popular target for scammers who count on people to take the bait and click on the links. Fear of the IRS or an audit can make normally cautious people panic and click through the emails without fully considering […]
Jobe Dupre’, CPA
Due to increases in the price of fuel, the IRS announced today an increase in the optional standard mileage rates effective July 1,2011. The new standard mileage rates are 55.5 cents per mile for business use of an automobile and 23.5 cents per mile for medical or moving. The mileage rate for charitable miles is fixed by law and remains at 14 cents.
Bond Beebe, a certified public accounting and advisory firm with offices in Bethesda, Maryland and Alexandria, Virginia, announced that three of their Principals participated in the International Foundation of Employee Benefit Plans’ (“IFEBP”) Benefit Plan Professionals Institute for Accountants, which took place June 13-15, 2011 in Las Vegas, Nevada. David Dorsey, Scott Price and Lawrence Beebe all participated in separate speaking engagements during the program. The IFEBP is a non-profit organization that is dedicated to being a leading objective […]
