PROTECTING YOURSELF FROM TAX-RELATED IDENTITY THEFT

Posting by Brian Wynne

Last week the IRS released its annual “Dirty Dozen” Tax Scams for 2014 as a reminder to be on the lookout for fraud and take steps to protect sensitive information as you file your taxes. Not surprisingly, identity theft tops this list.

Tax-related identity theft continues to grow – last year 1.6 million Americans were victims within the first half of the year. It is essential to be on the lookout for scams and take the necessary precautions […]

February 24, 2014 Tax Read more...

ESTATE PLANNING AND THE BASICS OF PORTABILITY

Billy Thomas, CPA

The estate tax landscape has a ‘permanent’ playing field now; the current Federal legislation exists in such a way that the rules will remain consistent for the foreseeable future. Back in 2010, estate tax was in a period of uncertainty due to the expiration of the Bush-era tax rules. Then the American Taxpayer Relief Act of 2012 created permanent estate and gift transfer tax laws, thereby providing a standard, predictable set of rules for estate planning.

The American […]

February 12, 2014 Accounting, Tax Read more...

Minimizing Tax Liabilities

Most small businesses pay more tax than necessary, because they don’t take advantage of common business tax deductions and tax credits. As your choice of business structure will largely determine how your business income will be taxed – should you incorporate? And if so, which business entity should you choose? Do you know what the tax law has to say about what constitutes business income? Are you making the most of saving the environment in exchange for business tax […]

January 28, 2014 Tax Read more...

Final Comprehensive Repair/Capitalization Regulations Take Effect: Theory Becomes Practice

Posting by Kelly Lopez

The IRS released the much anticipated “repair and maintenance” regulations for Sections 162(a) and 263(a) in September of last year, providing guidance regarding the deduction and capitalization of costs related to tangible property. The final regulations replace the temporary regulations issued in 2011.

Much was written about these changes when they first came out, however, since these regulations will affect virtually everyone who has a business (as most businesses have tangible property) and just took effect at […]

January 20, 2014 Tax Read more...

New Year Checklist for Business Owners

Posting by Joel Susco, CPA

The beginning of the year is the perfect time to step back and get a 360-degree view of your company. Taking the time to plan ahead and think strategically will help you set the foundation for success in 2014. There are a number of essential tasks this time of year that can’t be overlooked – like preparing for your 2013 tax obligations – and quite a few strategic decisions and efforts you should consider undertaking, […]

January 15, 2014 Family Owned Businesses, Tax Read more...

2014 EXPIRED TAX PROVISIONS

Sean Urbany, CPA

As of December 31, 2013, a number of tax provisions affecting both individuals and businesses expired. Currently, it is unclear whether Congress will retroactively extend any of the provisions, but the possibility remains. A few of the notable expired provisions are outlined below:
Expired Tax Provisions for Individuals

Tax-free IRA distributions to charities
Section 179 expense deduction is now limited to a maximum deduction of $25,000
Income exclusion for debt forgiveness on a principal residence mortgage
Above-the-line deduction […]

January 15, 2014 Accounting, Tax Read more...

NORTH CAROLINA ADOPTS SALES TAX FOR SERVICE CONTRACTS EFFECTIVE JANUARY 1, 2014

Glenn Bailey, CPA

In July of 2013, North Carolina adopted N.C. Gen. Stat. § 105-164.4(a)(11), which imposes the 4.75% general State and applicable local and transit rates of sales and use tax “to the sales price of a service contract” sold by a retailer on or after January 1, 2014 and sourced to this State.

N.C. Statutes define “service contract” as “a warranty agreement, a maintenance agreement, a repair contract, or a similar agreement or contract by which the seller agrees […]

January 6, 2014 Accounting, Family Owned Businesses, Tax Read more...

2% PAYROLL TAX REDUCTION EXTENDED FOR AT LEAST 2 MONTHS

Congress opted to extend the 2% reduction in Social Security withholding from employees and the similar reduction in self employment tax thru February 29th, setting up another legislative showdown on the subject 2 months from now.

Thru February 29th, the first $110,100 of earnings will be subject to the reduced 4.2% withholding rate. If the reduced rate is not subsequently extended the withholding rate on any wage over $18,350 will be retroactively adjusted to the 6.2% rate or whatever any […]

January 4, 2014 Accounting, Payroll Audit, Tax Read more...

2013 Year-End Tax Planning: Power of Attorney Radio Show

Posting by Brian Wynne

As I mentioned previously on the blog, I had the pleasure of joining Wayne Zell of Odin Feldman Pittleman on his radio show, Power of Attorney. We discussed a number of tax changes for 2013 and I shared several strategies to help deal with those changes and increases.

You can listen to the entire podcast here, but here are the basics:

Tax Increases for 2013

It’s helpful to think of the tax increases that went into effect this year […]

December 17, 2013 Tax Read more...

IRS ANNOUNCES 2014 STANDARD MILEAGE RATES

Scott Reddersen, CPA

The IRS announced the 2014 optional standard mileage rates this week. They are as follows:

56 cents per mile for business mileage
23.5 cents per mile for medical or moving mileage
14 cents per mile for charitable service mileage

For those keeping track, the rates for business, medical, and moving mileage each decreased by one-half cent from their respective 2013 rates. The charitable mileage rate remains unchanged.

December 12, 2013 Accounting, Tax Read more...