The distinction between a business activity and a hobby is not a black-and-white issue but instead comes in various shades of grey, which makes it a frequent topic in tax court. What is at stake? - At issue with the business or hobby determination is the treatment of the activity's expenses. A for-profit business is [...]
If you're like most taxpayers, you find yourself with an ominous stack of "homework" around TAX TIME! Unfortunately, the job of pulling together the records for your tax appointment is never easy, but the effort usually pays off when it comes to the extra tax money you save! When you arrive at your appointment fully [...]
We have compiled a checklist of actions based on current tax rules that may help you save tax dollars if you act before year-end. Regardless of what Congress does late this year or early next, solid tax savings can be realized by taking advantage of tax breaks that are on the books for 2011. For [...]
Unless Congress acts, enhanced capital gains and dividends tax rates and certain business tax incentives under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) and later legislation are scheduled to end "sunset" after December 31, 2010.The lower rates that taxpayers experienced under this legislation will therefore be replaced by rates, deductions and [...]
When looking for deductions to add to your taxes, don’t overlook your meal and entertainment expenses. These types of expenses must be “ordinary” and “necessary” to your business or trade and must be “directly related to” or “associated with” the active conduct of business. In order for the IRS to allow these deductions, documentation is [...]
If you are looking for cash for a specific purpose, your retirement piggy bank may be a tempting source. Especially if you were planning on putting a down payment on a beautiful assisted living lincoln ne facility for your retirement. However, if you are under age 59½ and plan to withdraw money from your Traditional [...]
Beginning in January, everyone, with certain exceptions, is required to have minimum, essential health care insurance. This issue has received a significant amount of press coverage recently, both negative and positive. Regardless of your opinion related to the issue, the mandatory insurance requirement, together with the accompanying penalties for not being insured, premium assistance credits, [...]
Here is a brief rundown on the tax rules for charitable contributions: Non-cash contributions – If you have used clothing or household goods that are in good or better condition that you don’t use any longer, contribute them to a charity thrift shop before the end of the year. Don’t forget: a receipt from the charity [...]
Medical Checklist After 2012, the limitation on deductible medical expenses increases for most taxpayers from the current 7.5% of AGI to 10% (it remains at 7.5% for taxpayers age 65 and over through 2016). So if you need some dental work, laser eye surgery, or other elective but deductible medical procedures, you might consider doing so sooner [...]
Mid-Year Tax Planning Checklist All too often, taxpayers wait until after the close of the tax year to worry about their taxes and miss opportunities that could reduce their tax liability or financially assist them. Mid-year is the perfect time for tax planning. The following are some events that can affect your tax return; you [...]
