Now that the holiday season has arrived, you might decide to step up your charitable donations to boost your deductions for the end of the year. Here are six timely strategies. 1. Document your claims. The IRS imposes strict substantiation rules for charitable donations. In fact, you’re required to keep records for all monetary contributions, no matter how small. The...
You’ve got debt! The question is, do you have good debt or bad debt? Even more important, how do you tell the difference before you take on any more? Here are two questions to ask before incurring any debt. 1. What are the benefits of taking on this debt? Avoiding all debt seems like good advice. But good debt can...
This update courtesy of Paychex: Final regulations for treating costs related to tangible personal property may open significant tax planning opportunities. For acquisitions of tangible property, a safe harbor rule allows taxpayers to deduct certain items. The safe harbor applies to items costing $5000 or less per item or invoice and are deducted on the company’s audited financial statements in...
Tags: repair regs
Category: Taxes
With schools back in session, the IRS has issued a reminder to taxpayers not to overlook available tax credits for education expenses. Tax credits are applied directly against the income tax you owe. Two available credits: the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). The AOTC can be up to $2,500 annually for an eligible student...
Tags: education credits
Category: Taxes
IRS Commissioner John Koskinen recently discussed the major concerns the IRS has as it readies itself for the upcoming tax filing season. The proliferation of tax scams is a big concern with millions of taxpayers already having been taken in by scammers impersonating IRS agents. According to Koskinen, these scammers make threatening phone calls, trying to intimidate victims into providing...
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Category: Taxes
This following comes courtesy of Paychex, Corp.: When the law goes into effect next July, employees whose companies do not offer sick time as a benefit will be able to earn it. Workers can earn one hour of paid time off for personal illness or medical appointments, for an illness in the family, or to deal with a domestic abuse...
Tags: Massachseuus Mandatory Sick time
Category: Taxes
Some itemized deductions are limited by a percentage of your gross income. An example is miscellaneous deductions. These provide a benefit only if your total outlay for costs such as investment fees and unreimbursed employee business expenses exceed 2% of your adjusted gross income. If you consistently lose out on these deductions, check now to determine if pulling some of...
Tags: deductions
Category: Taxes
Almost any taxpayer who owns commercial real estate can reduce his or her current income tax bill by using cost segregation. Just how much you save in taxes will depend on several variables. The greater the cost of your property, the greater the potential for current tax savings. Any building that was constructed, purchased, or remodeled since 1987 may be...
Tags: Cost Segregation
Category: Taxes
Did you celebrate your 70½th birthday in 2014? Do you have a traditional or rollover IRA? If both answers are yes, the deadline for taking the initial required minimum distribution from your retirement account is April 1, 2015. Required minimum distributions are the smallest amount you can withdraw from your account to avoid penalties, and your 70½th birthday is the...