Monthly Archives: June 2019

//June

States’ SALT Deduction Workarounds Shot Down

Article Highlights: Limit on Tax Allowed as an Itemized DeductionStates’ Attempted Workarounds Supreme Court RulingFinal RegulationsNotice 2019-12 The Treasury Department and the IRS have essentially shot down efforts by several states to help their residents circumvent the $10,000 cap on the itemized deduction for state and local taxes (SALT). When the Tax Cuts and Jobs [...]

By |2019-06-25T19:09:13+00:00June 26th, 2019|Categories: Uncategorized|0 Comments

What if you want to file your taxes but can’t afford to pay them?

It’s a common conundrum: You want to file your taxes on time, but you anticipate or already know that you will owe money you can’t afford to pay right now. As a result, you put off filing your tax return under the assumption that the IRS can only bill you if they receive your latest [...]

By |2019-06-24T19:21:56+00:00June 24th, 2019|Categories: Uncategorized|0 Comments

Hobby or Business? It Makes a Difference for Taxes – Now More than Ever

Article Highlights: For-Profit BusinessesNot-for-Profit BusinessesNine Determining FactorsProfit Presumption Taxpayers are often confused by the differences in tax treatment between businesses that are entered into for profit and those that are not, commonly referred to as hobbies. Recent tax law changes have added to the confusion. The differences are: Businesses Entered Into for Profit – For [...]

By |2019-06-18T20:28:06+00:00June 18th, 2019|Categories: Uncategorized|0 Comments

Household Help: Employee or Contractor?

Article Highlights: Household Employee DefinitionEmployee Control FactorsSelf-employed or EmployeeWithholding RequirementsReporting Requirements Taxpayers often will hire an individual or firm to provide services at the taxpayer’s home. Because the IRS requires employers to withhold taxes for employees and issue them W-2s at the end of the year, the big question is whether or not that individual [...]

By |2019-06-13T20:46:06+00:00June 14th, 2019|Categories: Uncategorized|0 Comments

How Does Combining a Vacation and Foreign Business Trip Affect the Tax Deduction for Travel Expenses?

Article Highlights: Primarily Business Primarily VacationSpecial CircumstancesForeign Conventions, Seminars and MeetingsCruise ShipsSpousal Travel Expenses Note: effective for years 2018 through 2025, the Tax Cuts and Jobs Act of 2017 suspended the deduction of miscellaneous itemized expenses that must be reduced by 2% of the taxpayer’s adjusted gross income. Employee business expenses, including travel expenses, fall [...]

By |2019-06-13T17:48:07+00:00June 13th, 2019|Categories: Uncategorized|0 Comments

Donor Advised Funds Provide Tax Benefits

Article Highlights: Donor-Advised FundItemized or Standard DeductionsSponsoring OrganizationsTax BenefitsBunching StrategyHigh Income YearsDonating Appreciated Assets If you would like to make a substantial tax-deductible charitable donation this year, but have the ability to spread the actual distribution of funds to specific charities over a number of years, a donor-advised fund (DAF) may fill that need. There [...]

By |2019-06-06T19:15:48+00:00June 6th, 2019|Categories: Uncategorized|0 Comments

June Estimated Tax Payments Are Just Around the Corner

Article Highlights: EmployeesSelf-Employed IndividualsIndividuals with Sources of Income Without WithholdingQuarterly PaymentsUnderpayment PenaltySafe Harbor Payments June 15th falls on the weekend this year, so the due date for the second installment of estimated taxes is the next business day, June 17, which is just around the corner. So, it is time to determine if your estimated [...]

By |2019-06-05T21:12:04+00:00June 5th, 2019|Categories: Uncategorized|0 Comments

School’s Out – Who Is Going to Take Care of the Kids?

Article Highlights: Child Age LimitsEmployment-Related ExpenseMarried Taxpayer Earnings LimitsDisabled or Full-Time-Student SpouseExpense Limits Summer has just arrived, and there is a tax break that working parents should know about. Many working parents must arrange for care of their children under 13 years of age (or any age if disabled) during the school vacation period. A [...]

By |2019-06-04T15:57:05+00:00June 4th, 2019|Categories: Uncategorized|0 Comments