Monthly Archives: January 2015

//January

Back to School Tips for College Students and Parents

Whether you’re a recent high school graduate going to college for the first time or a returning college student, it will soon be time to get to campus—and payment deadlines for tuition and other fees are not far behind. Students or parents paying such expenses should keep receipts and be aware of some tax benefits [...]

By |2016-11-23T22:45:42+00:00January 27th, 2015|Categories: Uncategorized|Comments Off on Back to School Tips for College Students and Parents

Avoid Home Cancellation of Debt Income

When a taxpayer settles a debt for less than its full amount, the forgiven amount of the debt is taxable, unless the taxpayer qualifies for one of two currently available exclusions. With the downturn in the economy and the accompanying drop in home prices that occurred in recent years, many taxpayers are unable to keep [...]

By |2016-01-21T00:01:20+00:00January 27th, 2015|Categories: Uncategorized|Comments Off on Avoid Home Cancellation of Debt Income

Avail Yourself of Your Employer’s Tax-Advantaged Benefits

Employer dependent care benefits allow you to exclude up to $5,000 in childcare expenses from your wages. Employer health care plans allow you to exclude the cost of insurance for you and your family from your wages. Employer 401(k) plans allow you to set aside $17,500 ($23,000 if you are 50 years or over) per [...]

By |2016-01-21T00:01:20+00:00January 27th, 2015|Categories: Uncategorized|Comments Off on Avail Yourself of Your Employer’s Tax-Advantaged Benefits

Are you required to file Form 1099?

If you use independent contractors to perform services for your business and you pay them $600 or more for the year, you are required to issue them a Form 1099-MISC after the end of the year to avoid facing the loss of the deduction for their labor and expenses. The 1099s for 2013 must be [...]

By |2016-01-21T00:01:20+00:00January 27th, 2015|Categories: Uncategorized|Comments Off on Are you required to file Form 1099?

Are you Required to File 1099’s?

If you use independent contractors to perform services for your business and you pay them $600 or more for the year, you are required to issue them a Form 1099-MISC after the end of the year to avoid facing the loss of the deduction for their labor and expenses.  The 1099s for 2012 must be [...]

By |2016-01-21T00:01:20+00:00January 27th, 2015|Categories: Uncategorized|Comments Off on Are you Required to File 1099’s?

Are You Liable for a Gift Tax Return?

Frequently, taxpayers think that gifts of cash, securities, or other assets they give to other individuals are tax-deductible and, in turn, the gift recipient sometimes thinks income tax must be paid on the gift received. Nothing is further from the truth. To fully understand the ramifications of gifting, one needs to realize that gift tax [...]

By |2016-11-23T22:45:42+00:00January 27th, 2015|Categories: Uncategorized|Comments Off on Are You Liable for a Gift Tax Return?

Getting Around the Kiddie Tax

Congress created the “Kiddie Tax” to prevent parents from placing investments in their child’s name to take advantage of the child’s lower tax rate. Kiddie Tax rules apply most often to children through the age of 17, although children aged 18 through 23 who are full-time students may also be affected. Under the Kiddie Tax, [...]

By |2016-01-21T00:01:20+00:00January 27th, 2015|Categories: Uncategorized|Comments Off on Getting Around the Kiddie Tax

Getting Hit With the Alternative Minimum Tax?

The alternative minimum tax, originally created to curb tax shelters and tax preferences of the wealthy, can now apply to the average taxpayer. Six commonly encountered deductions routinely cause the average taxpayer to be hit by the AMT. Incentive stock options can also have a profound impact on the AMT. There are two ways to [...]

By |2016-11-23T22:45:43+00:00January 27th, 2015|Categories: Uncategorized|Comments Off on Getting Hit With the Alternative Minimum Tax?

Home Modifications for Disabilities

Generally, home improvements are not deductible except to offset home gain when the home is sold. But a medical expense deduction may be claimed when the home modification is a medical necessity. The modification expense is only deductible as a medical expense to the extent it exceeds any resulting increase in the value of the [...]

By |2016-11-23T22:45:43+00:00January 27th, 2015|Categories: Uncategorized|Comments Off on Home Modifications for Disabilities

How Business Website Expenses Are Deducted

Purchased websites can be amortized over the course of 3 years or expensed under Sec 179. In-house developed websites can be expensed or amortized over the course of 3 years. Non-software costs, such as graphics, must be amortized during their useful lives. Advertising content can be expensed. Costs incurred prior to business start-up can be [...]

By |2016-11-23T22:45:43+00:00January 27th, 2015|Categories: Uncategorized|Comments Off on How Business Website Expenses Are Deducted