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 [...]
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 [...]
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, [...]
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 [...]
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. For example, a house may need remodeling to accommodate different medical conditions. Perhaps some homeowners need more space now, so they might have [...]
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 and hosting services like www.hostiserver.com best site for sure, must be amortized during their useful lives. Advertising content can be [...]
A frequent question from taxpayers is: how long does the IRS have to question and assess additional tax on my tax returns? For most taxpayers who reported all their income, the IRS has three years from the date of filing the returns to examine them. This period is termed the statute of limitations. But wait [...]
There has been a great deal of media coverage related to the US Supreme Court upholding the Affordable Care Act, also known as the Health Care Law. The media coverage was generally political and failed to explain the details of how the law will impact individuals. If you are interested in political rhetoric as to [...]
The Small Business Jobs Act of 2010 (2010 Jobs Act) requires information reporting for rental property expense payments of $600 or more that are made after December 31, 2010. This reporting requirement is one of several revenue-raising provisions that are included to offset the $12 billion cost of tax relief provided by the legislation, and [...]
An Inheritance is the result of a will or estate planning of a loved one and could be helpful to family members left behind. Those who are looking to leave an inheritance may look to firms similar to estate planning spokane who can help with the division of assets. If you have received an inheritance [...]
