AICPA Offers Form 990 Recommendations to IRS
July 1, 2015 Knowledge Center
AICPA Offers Form 990 Recommendations to IRS

Washington, D.C.  – The American Institute of CPAs (AICPA) offered more than 40 recommendations to the Internal Revenue Service (IRS) last week for the Form 990, Return of Organization Exempt from Income Tax, and instructions. The recommendations include adding thresholds throughout the instructions at the top of any schedule, part or line that has a specific […]

Large employers: Time to start planning for ACA information reporting
June 30, 2015 Knowledge Center
Large employers: Time to start planning for ACA information reporting

With the U.S. Supreme Court’s June 25 decision upholding the Affordable Care Act (ACA) yet again, employers subject to the act’s information reporting provision can no longer afford to put off planning in the hope that the requirements might go away. Beginning in 2016, “large” employers as defined by the act (generally employers with 50 […]

Opening the “back door” to a Roth IRA
June 23, 2015 Knowledge Center
Opening the “back door” to a Roth IRA

A potential downside of tax-deferred saving through a traditional retirement plan is that you’ll have to pay taxes when you make withdrawals at retirement. Roth plans, on the other hand, allow tax-free distributions; the tradeoff is that contributions to these plans don’t reduce your current-year taxable income. Unfortunately, modified adjusted gross income (MAGI)-based phaseouts may […]

Married with a large estate? Why you still need a credit shelter trust
June 17, 2015 Knowledge Center
Married with a large estate? Why you still need a credit shelter trust

Even though portability now allows married couples to use up both spouses’ estate tax exemptions without having to make lifetime asset transfers or set up trusts, this “easier” path isn’t necessarily the better path. For couples with large estates, making lifetime asset transfers and setting up trusts can provide benefits that exemption portability doesn’t offer. […]

Before donating a vehicle, find out the charity’s intent
May 26, 2015 Knowledge Center
Before donating a vehicle, find out the charity’s intent

If you donate your vehicle, the value of your deduction can vary greatly depending on what the charity does with it. You can deduct the vehicle’s fair market value (FMV) if the charity: Uses the vehicle for a significant charitable purpose (such as delivering meals-on-wheels to the elderly), Sells the vehicle for substantially less than […]

Expect to be paying elementary or secondary school costs in the future? Consider an ESA
May 19, 2015 Knowledge Center
Expect to be paying elementary or secondary school costs in the future? Consider an ESA

As the school year draws to a close, it’s a good time to think about Coverdell Education Savings Accounts (ESAs) — especially if you have young children. One major advantage of ESAs over another popular education saving tool, the Section 529 plan, is that tax-free ESA distributions aren’t limited to college expenses; they also can […]

You’re a real estate investor, but are you a “professional”?
May 12, 2015 Knowledge Center
You’re a real estate investor, but are you a “professional”?

Income and losses from investment real estate or rental property are passive by definition — unless you’re a real estate professional. Why is this important? Passive income may be subject to the 3.8% net investment income tax (NIIT), and passive losses are deductible only against passive income, with the excess being carried forward. To qualify […]

100% deduction for certain M&E expenses!
May 6, 2015 Knowledge Center
100% deduction for certain M&E expenses!

Generally, businesses are limited to deducting 50% of allowable meal and entertainment (M&E) expenses. But certain expenses are 100% deductible, including expenses: For food and beverages furnished at the workplace primarily for employees, Treated as employee compensation, That are excludable from employees’ income as de minimis fringe benefits, For recreational or social activities for employees, […]

Got ISOs? You need to understand their tax treatment
April 29, 2015 Knowledge Center
Got ISOs? You need to understand their tax treatment

Incentive stock options allow you to buy company stock in the future at a fixed price equal to or greater than the stock’s fair market value on the grant date. If the stock appreciates, you can buy shares at a price below what they’re then trading for. ISOs must comply with many rules but receive […]

Facing an unexpected bill for the additional 0.9% Medicare tax?
April 14, 2015 Knowledge Center
Facing an unexpected bill for the additional 0.9% Medicare tax?

The additional 0.9% Medicare tax applies to FICA wages and self-employment income exceeding $200,000 per year ($250,000 for married filing jointly and $125,000 for married filing separately). Unfortunately, the withholding rules have been tripping up some taxpayers, causing them to face an unexpected tax bill — plus interest and penalties — when they file their […]

A net operating loss on your 2014 tax return isn’t all bad news
April 7, 2015 Knowledge Center
A net operating loss on your 2014 tax return isn’t all bad news

When a company’s deductible expenses exceed its income, generally a net operating loss (NOL) occurs (though of course the specific rules are more complex). If when filing your 2014 income tax return you’ve found that your business had an NOL, there is an upside: tax benefits. When a business incurs a qualifying NOL, the loss […]

Still filing a paper return? Be sure you understand the “timely mailed = timely filed” rule
April 2, 2015 Knowledge Center
Still filing a paper return? Be sure you understand the “timely mailed = timely filed” rule

The IRS considers a paper return that’s due April 15 to be timely filed if it’s postmarked by midnight on April 15.  But dropping your return in a mailbox on the 15th may not be sufficient. For example, let’s say you mail your return with a payment on April 15, but the envelope gets lost.  […]