Don’t Neglect 2013 IRA Contributions
You have until April 15, 2014 to make your 2013 IRA contributions, but there are five important points to consider prior to year-end: 1. Contribution amount – You can contribute up to $5,500 ($6,500 if you are age 50 or older by the end of 2013) or your taxable compensation, if less, to a traditional or Roth…
Are You Headed Over the ‘Fiscal Cliff’?
You have certainly heard the news coverage of the so-called “fiscal cliff” coming at the end of this year. Basically, many provisions in our federal income tax system have an expiration date of Dec. 31, 2012, by design. Without corrective action by our legislators, many negative tax changes will automatically happen. Among its effects are:…
Non-Cash Assets: An Option for Satisfying Year-End Charitable Giving
Is it time to start thinking about year-end charitable gifts and bequests – but you’re short on cash? Have you considered non-cash asset contributions? When most people think about donating non-cash assets, they generally consider the donation of appreciated stock only, but you should also consider the following: Real estate Closely held stock LLC and…
Crop Insurance Proceeds – Appropriate Tax Planning Strategies
The severe drought experienced by much of the United States this year, especially in the country’s agricultural producing section, will mean a record number of crop insurance claims. Many astute farmers understand that crop insurance proceeds may be deferred for one tax year. However, there are a number of surprising technical parameters that surround the…
Tax Relief Available If Disaster Strikes
A natural disaster can occur anytime and anywhere across the country. Regardless of whether it’s a tropical storm, a flood, a wildfire or some other disaster, it’s important to remember that individuals and businesses do have tax relief options available to them when these events occur. So far in 2012 alone, there have been 19…
Report Cost of Employer-sponsored Health Coverage
Starting in 2012, the total cost of employer-sponsored health coverage must be reported on the Form W-2 issued to an employee. For W-2 forms issued in January 2013 for the 2012 taxable year, the total reportable cost will be reported in Box 12 with code DD. This does not apply to small companies that issue…
Foreign Bank Account, Financial Reporting Due June 30
If you haven’t heard by now, many U.S. citizens, residents and legal entities must report their foreign financial accounts to the U.S. Department of the Treasury – or face penalties. Report of foreign bank and financial accounts Who must file? Any U.S. person who holds a financial interest or signatory authority in a foreign financial…
Does The One-Year Rule Apply to Your Prepaid Expenses?
To capitalize or not to capitalize? Many businesses ask that question. And the answer depends on the circumstances. Taxpayers aren’t required to capitalize an expense if it is paid or incurred to create a right or benefit that does not extend beyond the earlier of: 12 months after the first date of the right or…
IRS Responds to Rise in Identity Theft
“Tax fraud through identity theft has become an ordinary street crime,” Senator Bill Nelson said in a March 20 hearing. Nelson, chair of the Senate Finance Subcommittee on Fiscal Responsibility and Economic Growth, was speaking to a panel of witnesses during a hearing on the IRS’s response to the identity theft problem. The amount of…
Payroll Tax Cut Extended Through 2012
President Obama signed the Middle Class Tax Relief and Job Creation Act of 2012 into law on Feb. 22, extending the payroll tax cut through the end of 2012. The tax cut originated in 2011. It was temporarily extended only through February 2012 because Congress couldn’t agree on how to pay for a full year’s…