Midyear Planning for Vacation Home Rentals with Significant Personal Use

Summer is the time for family vacations in the sun, sand and fresh air. It's also a good time to plan for how your vacation home will be used for the second half of the year. Should you rent it out more to generate additional cash flow to help cover the expenses? What are the tax consequences of renting? Will you need to plan additional family getaways to maximize your tax benefits? Here are Continue Reading

Heavy Vehicle Purchases Offer Significant Business Tax Breaks…For Now

Favorable depreciation rules for business use of "heavy" SUVs, pickups and vans were locked in by the Protecting Americans from Tax Hikes (PATH) Act of 2015. By taking advantage of these rules, you may be able to write off the entire business-use portion of a heavy vehicle's cost in the first year. Here's how it works. Depreciation Deductions for Lighter Vehicles The PATH Act extended Continue Reading

Health Savings Account Limits for 2017

With Health Savings Accounts (HSAs), individuals and businesses buy less expensive health insurance policies with high deductibles. Contributions to the accounts are made on a pre-tax basis. The money can accumulate year after year tax free, and be withdrawn tax free to pay for a variety of medical expenses such as doctor visits, prescriptions, chiropractic care and premiums for long-term-care Continue Reading

Protect Your Accounts from Identity Theft and Fraud

From mobile apps to the Internet, technology has transformed our lives. It facilitates financial transactions and the transmission of information. But it also brings risks. There are weekly news stories about sensitive personal data being hacked online and sold on the black market. Do You Review Your Statements Each Month? With the prevalence of automated bill payment, many busy Continue Reading

The Latest Tax Developments for Partnerships

In recent months, there have been several significant tax developments that affect partnerships. They also apply to multi-member limited liability companies (LLCs) that are treated as partnerships for federal tax purposes. (For simplicity, we'll use the terms "partnership" and "partner" to refer to all entities and owners that are affected by the developments.) Here are quick summaries of Continue Reading

IRS Reveals List of Top Tax Scams for 2016

The IRS kicked off tax filing season by publishing a series of press releases that highlight the "dirty dozen" tax scams for this year. Although there are no major surprises, it's important to note that these scams have become increasingly technology-driven in recent years. Taxpayers can use this list to avoid becoming the victim or perpetrator of fraud. 1. Identity Theft Tax-related Continue Reading

Is the IRS Targeting Partnerships?

IRS audits of partnerships were up 18.6% in 2015 over the previous tax year, according to the agency's Fiscal Year 2015 Enforcement and Service Results. That's the highest audit rate partnerships have experienced since 2006. By comparison, audits of large C corporations decreased by 8.8% in 2015. The situation is expected to only get worse under the new rules for audits of partnerships that Continue Reading

Are You Turning Age 70 1/2? Here Is Some Important Information

Under the so-called required minimum distribution rules, you must begin taking annual payouts from your traditional IRA by no later than April 1st of the year after you turn 70 1/2. (If you have a Roth IRA, it is exempt from these rules.) It doesn't matter if you would prefer to leave your traditional IRA untouched. You must begin taking required minimum distributions by no Continue Reading

Five Last-Minute Moves to Lower Your 2015 Tax Bill

Tax Day is right around the corner. Have you filed your federal tax return yet? The filing deadline to submit 2015 individual federal income tax returns is Monday, April 18, 2016, rather than the traditional April 15 date. Washington, D.C., will celebrate Emancipation Day on Friday, April 15, which pushes the deadline to the following Monday for most of the nation. The deadline will be Tuesday, Continue Reading

Work Out a Plan for Retirement Payouts

It takes a lot of years and hard work to arrive at retirement. Hopefully, you've been able to set aside enough funds in a company retirement plan to enable you to spend your golden years in relative comfort and security. Exceptions to the Early Withdrawal Penalty     The tax law imposes an additional 10 percent tax on certain distributions from retirement plans to discourage Continue Reading