Step into the batting cage with us!

Q: What if you had extra one-time income (an IRA withdraw for example) and exceeded the income limit to receive an advance stimulus payment? A: The law specifies that stimulus checks are based on a temporary, refundable tax credit for tax year 2020. If your income will be substantially less this year and you otherwise…

When it comes to protecting ourselves from ID theft, our problem is that most of us don’t think the same way that a criminal does.  Good legal advice becomes vital because an attorney who has presided over such cases can share some of the methods that ID thieves may use. Our guest editor this week…

This subject reminds of a famous line from the movie Jurassic Park. “Your scientists were so preoccupied with whether or not they could, they didn’t stop to think if they should.” So even though you could access your IRA account in a tax-advantaged way, you should be careful about raiding your retirement funds except for…

Although we’re very good at tax and accounting, when it comes to legal matters, it always pays to consult a good attorney and, in this case, a sitting Magistrate Judge.  Judge Kathy Brown Valencia is our guest editor this week. She serves as Magistrate Judge, Post 2 (county-wide), and is the incumbent candidate for the…

Most of us are a little doubtful of the IRS’ ability to get things exactly right especially with the rebate being partially phased out as your income goes up. If you’d like a method of double-checking the government’s calculation of your soon to be coming stimulus check, feel free to use our calculator below. Just…

  New Law Extends Key Tax Breaks into 2020 — aka How Congress tries to upset your year-end planning Just when it seemed like Congress was too distracted by impeachment proceedings and national security to worry about taxes, they throw curveballs into our year-end tax planning.  The Extenders and Secure (Retirement) Act are just a…

To succeed in business, it’s necessary to learn some economic theory. Don’t worry – this doesn’t mean you have to have a degree in Econ studies – it just means you grasp some principles of how free markets work. Some of the best reads that I’ve ever found are described in our video review below.…

In the case of non-cash charitable gifts you need to be careful not to fall into several tax traps that may limit your deduction.

There have always been a number of things you can do to get on the IRS’ bad side and (in the Christmas vernacular) their “naughty list.”  This article from Forbes is a great checklist of things you should never, ever, do when dealing with an IRS audit. Published by Tax Attorney Robert Wood in Forbes…

 Only a few months left to Claim a Tax Credit for Residential Solar Panels If you’ve decided that you want to go the Solar Energy route, here are some unique tax advantages to help pay for it. The 30 percent residential solar credit: drops to 26 percent for tax year 2020, drops to 22 percent…

Roth IRA versus Traditional IRA: Which Is Better for You?   I can’t think of a more heated tax debate than this topic has been over the years. This debate is akin to the feud between the Hatfields and McCoys, the Montague and Capulets, the Union and the South, etc. Accountants tend to be split…

  Two years ago, we published this alert about the Equifax data breach and the steps you should take.  Today, it’s happened again! This time it’s about 100 million Capital One credit card application’s info that may be exposed. We’ll quote an article from PC World: “On Monday night, Capital One revealed that more than 100…

There are many numbers (tax rates, investment percentages, etc.) that we like for clients to remember, but as we approach Independence Day, we ought to refocus on some numbers that are just as important. Our broker friends have provided them in the video below.

How taxes really work

Most clients don’t really need to know all the aspects of Tax Reform. But a quick reference guide can be helpful. From the new rules on alimony to 529 plans to mortgage interest limitations to meals and entertainment and the new 20% business income deduction – here’s the tip sheet you’ll want to print and keep…

I’m putting this under the category of tax humor but, arguably, it’s not that funny.  There used to be a cliche that nothing has changed due to technology and that we still spend most of our income on food, clothing, and shelter. There is something that has grown faster than real estate costs or inflation. That’s the…

Guard your ID carefully. Here are some tips.

Buckle your seat belt because the road to tax savings just got bumpier. We’ll be covering the major changes for tax year 2018 below. Existing clients can obtain a free detailed report on each area by clicking this link and referencing the phrase in the topic column in the subject line of your email.

How you define “Real Estate Investor” and “Real Estate Dealer” can make a huge difference in your taxes. Let’s take a look at how big a difference you can make in the tax bite. Say you have a $90,000 profit on the sale of a property. • Dealer taxes could be as high as $46,017. •…

This is because the tax rates are less than in 2017 for every income bracket. Although there is always the exception the proves the general rule, here are the new reduced rates for tax year 2018. Existing clients are welcome to email us for an estimate of just how much savings you may realize.

The following questions are ones that we get asked every week at this time of year. Below are the answers that factor in the new tax law that will affect the 2018 returns. Will I be able to save on taxes if I prepay my January 2019 mortgage bill before the end of the year in…

From SCA to you

Warning- IRS penalty forgiveness for foreign bank accounts is about to expire! Although most clients are aware that earnings from a foreign bank account are reportable on a US citizen’s tax return they may not realize the danger of non-disclosure of foreign accounts – even if they produce no income! The various penalties run the gamut from 10,000…

Joint filing can save a lot of tax -except when it makes you guilty of your spouse’s fraud!

Educators tell us that we retain knowledge better when it’s associated with pictures.  We’ve taken our Top Ten Items of Tax Reform for this week and created an infographic to help you better remember areas for 2018 tax planning. To discuss the specific impact on your own return, just email us for a projection of your…

Don’t fall for newest IRS scam

Don’t shoot the messenger, but Congress has done it again!

Tax Reform opens a new door for your child’s education

Why you should work through a local charity

Will you get a tax cut next year?

It seems that, much like the Atlanta weather, if you don’t like today’s tax law -just hang on and it’ll be different next week.

It seems that, much like the Atlanta weather, if you don’t like today’s tax law -just hang on and it’ll be different next week.

From SCA to you

Plan now for next year’s larger amounts.

To check the likelihood of your data being breached, Click Here

IRS provides relief from filing deadlines.

As Shakespeare said . . . “Neither a borrower or a lender be.”

Say sayonara to your passport

Why a 1031 exchange is a great tax planning idea

Sometimes, in spite of all the planning, you may wind up owing more than you expected to the IRS.

The other tax date in April – this one can cost you 50%

If you’ve been inconvenienced with the IRS assigning you a PIN you’ll be encouraged to know . . .

The members of the IRA family are very different from each other.

What the 2016 tax law changes mean to you.

Here are some popular deductions that will die on 12/31/16

Tax Planning for the new year.

Here’s the real reason that companies leave American soil and what it costs you!

How to save taxes with year-end planning.

What to do if you’re the victim of ID theft. Take these steps asap.

How a new President may change the tax laws.

Can you deduct the loss on your rental property? Here’s the answer.

Doe the EC still serve a useful purpose? The answer is surprising!

Watch out for these tax monsters on Halloween!

Confused about the Obamacare shared responsibility payments? Here’s help.

The problem with social security . . .

Only certain types of moving expenses are deductible. Here’s an overview.

Plug in your income and compare the Presidential tax plans.

The IRS was in damage control mode Tuesday after an audit revealed that it paid bonuses to employees who were in trouble over tax issues themselves.

Sometimes Congress actually gets something right! This happens so rarely that I wanted to write a special blog post on it. Clients who have followed our advice over the years tend to retire with no mortgage debt and few out-of-pocket medical expenses. This leaves their charitable contributions as the main source of itemized deductions to…

The only tax shelter that you can deduct contributions and not be taxed on distributions.

Just how free are you? It may depend on where you live.

The other tax date in April – this one can cost you 50!

How the “wash sale” rules can cancel your current year write-off

You don’t have to be a genius to know what simple math ratios indicate is happening to social security. Just take a look at the chart below, and you’ll know why you can’t trust Social Security exclusively for your retirement. Planning now is always better than panicking later. Remember that we’re just a click away…

If you win the powerball . . . how much state tax is due?

How the government redistributes your income

Here are the average tax deductions by income level according to the IRS

A magic trick by Congress!

Confused about the tax tools for retirement planning? Here’s some help.

In the case of non-cash charitable gifts you need to be careful not to fall into several tax traps that may limit your deduction.

During the season of giving, you can (tax-wise) accomplish some effective giving as well.

Well . . . it’s technically not a “gift” but it will help you lower your taxable income for 2014.

Tax advantages just for veterans

One of the scariest things you’ll ever see.

Georgia ranks among the lowest in debt per capita

It may be a speech for your product or service, or just to promote the goodwill of your company – but it’s important to do it well.

Need money from your IRA but want to avoid the 10% penlalty?

Combining two incomes may more than double your tax bill! Here’s how to fight back.

Expect Obamacare penalties to get worse next year.

Just how free are you? It may depend on where you live.

  IRS internet scams are famous (or infamous) and have been around a long time. The post below is a warning of these e-mail and call scams that we published months ago.    However, among professional con men there’s an old saying – “there’s no scam like an old scam.” What they mean by this…

Donations to slain Police Officer’s families can be backdated to 2014.

During tax season, we get a lot of questions about the deductibility of rental real estate losses. There is not a single “sound bite” type of answer as it can depend upon your income level, type of property, and the degree to which you share in the management responsibilities.

Although we don’t give investment advice, we thought a simple math formula that helps you maximize your stock gains might be useful.

How to E-Sign your individual tax return

My Social Security benefits aren’t taxable. Depending on the amount of other income that a taxpayer has to report, their benefits may be taxable – but the maximum amount of Social Security benefits that must be included is 85 percent. I don’t need to report stock sales if I bought other stocks with the proceeds.…

In March, 2010. President Obama signed the Affordable Care Act. One provision of the Act required that in 2014 all Americans must have qualified health insurance or face a “Shared Responsibility Payment,” more commonly known as the Health Care Penalty. A lesser known amendment to the Act allowed insurance providers and large employers a one-year…

You may still have to file a tax return if you live outside the United States and maintain your US citizenship.

Well . . . it’s technically not a “gift” but it will help you lower your taxable income for 2014.

All of our existing clients have access to our SCA Secure client portals at no additional charge.

During the season of giving, you can (tax-wise) accomplish some effective giving as well.

Our clients are some of the most grateful people we know. It seems appropriate on this holiday to document the things that we’re most thankful for and the persons responsible for them. We’re always thankful for you, our clients, and look forward to serving you in 2015! Feel free to use our form below to…

In the case of non-cash charitable gifts you need to be careful not to fall into several tax traps that may limit your deduction.

Haven’t filed a return for a few years? Here’s how to start.

Who gets the money from a ROTH-IRA?

Here are the answers to the two most often asked questions we get on the subject of Roth accounts.

  After 172 posts and 81 pages written and published on our site, nothing has drawn the reaction of this post entitled Who pays the Federal Income Tax. Given that the stats quoted were from the IRS, you’d think that no one could argue about an empirical fact (the top 10% pay over 70% of…

With our encrypted portals uploading your data couldn’t be much safer or much easier. Have a look as one of our clients uploads tax information to us. It’s safe, quick, and easy! Steps demonstrated in the video Login Click on File Exchange in left sidebar Click on the Upload Data folder Click the Upload icon…

Editor’s Note: There have been substantial changes in the ACA law since we published this post. See our current newsletter for updated information. The Cliff Notes version (detailed explanation below) 2010 – 2011 Small business tax credit Adult dependent insurance coverage Return information disclosure Restrictions on use of HSA and FSA funds 2012 Information reporting…

Henry Winkler (a/k/a “The Fonz” on the Happy Days TV series) can be currently seen on television advertising for senior citizens to sign up for a reverse mortgage. Before you can make a financial decision on anything, you need to know: How does it work, and How does it help (or hurt) me financially? How…

    IRS Circular 230 Disclosure – What Does all the legalese really mean?   Our SCA team prides itself in looking after each client’s tax affairs as if they were our own. We leave no tax deduction aside you’re legally entitled to take. Reliance on professional advice has usually been the only thing required…

We talk a lot about the importance of keeping your data secure.  Three years ago we offered our SCA secure portals which use a transparent 256bit encryption. The problem is that most of us don’t take our computer with us when we visit our banker or stockbroker. To fix this inconvenience for our clients, we’ve…

Here are the average deductions, by level of income, based on the latest available IRS stats. The following are preliminary figures released by the IRS (their reports lag behind the current tax year because of the time needed to compile figures). These are averages only. [Editor’s note: Remember that there is no “average” amount that…

Clients are sometimes surprised that we need to call them back with an answer to the above question. The chart below explains why this can require some analysis to answer. On this client’s 2013 return, he has encountered no less than six rate structures. Since you can’t effectively plan without knowing your real marginal rate,…

  The answer is yes – for the most part. Here’s a letter we wrote to a client explaning how this works. Dear [name redacted] You’ve asked us to review the tax limitations on  deducting the expenses of renting a skybox or other private luxury box at a sporting event. Skybox rentals are subject to…

A visual summary of Tax Planning areas for 2014

If you’re the DIY (do it yourself) type, here are the tools.

Many folks will get a severe case of sticker shock in 2013. Here’s why.

Among professional con men there’s an old saying – “there’s no scam like an old scam.” What they mean by this is that the basic appeal of the con is the same although the technology to deliver the scam may improve. Nowhere is this more true than with scams that appear to be emails from the…

Certain deductions are scheduled to vanish in 2014!

Figures don’t lie but IRS Commissioners do.

We give you the steps to combat the ever-present danger of ID Theft

Calculating the home office deduction just got easier in 2013

This year marks the tax code’s 100th birthday. So-what do you get for the Tax Code that has (quite literally) everything under the sun already?

How much will Social Security pay you at retirement? Our chart will give you an answer.

A timeline for some of the new taxes in the President’s 2014 budget and Obamacare

See the Star Trek and Gilligan’s Island parody videos that cost $70,000 of the taxpayers’ money

If you’re dreading April 15 due to a big tax bill- it could be worse. Facebook’s IPO made founder Mark Zuckerberg a billionaire — but left him with a tax bill likely to top $1 billion. Here’s the story from the CNN news feed. Facebook’s stock market debut left founder and CEO Mark Zuckerberg with a…

Do you ever get frustrated formatting a yearly spreadsheet and then entering data in 12 tabs for monthly projections, budgets,etc? What’s really irritating is when something has to be added and you’re faced with 12 tabs to update.  Thanks to Excel expert Tom Fragale (@PhillyTom), we have a way to enter your data just once…

This is one of our older posts, but it’s still good advice!

Laura Saunders has a great exercise in predictive logic in the tax section of the Wall Street Journal. Most clients’ largest tax benefit may soon be under attack if she’s right! ” When you receive your W-2 for 2012, pay attention to a surprising new number on the form, especially if you are an upper-income-bracket taxpayer.…

I’ve always liked being able to substitute items on a restaurant menu. That way you get exactly what you want. Why should your tax organizer be any different? Although the organizer is customized based upon your prior year return, things can often change from last year. If you switched jobs, opened a new brokerage account, opened a new Health…

  Sometimes being average is not a bad thing. The data below (for illustrative purposes only) shows what the IRS has calculated as average deductions by income level. When a tax return varies too far from the average, something called a DIF ( Discriminant Income Function) score flags the return for audit. However, IRS  uses more…

As our golfer friends say, time is running out for a mulligan on any IRA distributions that were required by 12/31/12. The fiscal cliff law signed by the President on January 2 has a retroactive provision that could help you out of a jam if you forgot to take a RMD (required minimum distribution) from…

  Retirement Planning – it’s more than a game of scrabble?   Some of the 2013 retirement plan limits have changed. Good planning involves trying to max out these amounts every year. Stop playing a game of scrabble with your retirement and hoping for some lucky tiles to come your way. We can help you determine how much…

Certain numbers can be unlucky for filing your tax return for 2012. Some of the 4 digits that are guaranteed to delay filing of your return until late February or even March are 3800, 4562, 5695 ,8582 to name just a few. We’re not getting these from a Chinese fortune cookie, but from the IRS website. Seems…

You may remember our post a few weeks ago where the IRS predicted that the fiscal cliff may cause filing delays until the end of March for complex returns.  Due to a semi-solution by Congress, we now have IRS confirmation that January 30 is approved as the first day for E-Filing. Advanced returns will still be…

We’ve reviewed the 157 page sorry excuse for a err I mean problem-solving bill Congress passed last night. Sorry that it is (raises taxes, but no spending cuts to speak of), we at least have an idea of what’s coming in 2013. Here are the main (but not all)  areas that will effect your return…

be sure to read our letter to clients on how to plan for 2013. This link will take you there.   See the effect on your family in 2013 (Click Here) or use our fiscal cliff calculator with the numbers from your 2011 return. 

You have to admire one thing about acting IRS Director Steve Miller. As the head of IRS, he warned Congress that certain tax returns will not be processed until March of 2013.  Why make this threat? Because twice in the past when the AMT patch has expired, it has been reinstated retroactively. The IRS made…

Whether you are single, married, working your way through college, or settled in your career. This infographic from today’s Wall Street Journal shows the financial loss you’ll feel in 2013. Begin your tax planning now to avoid a painful new year. Be aware that these are averages. Your tax effect may be larger. [Be sure to click…

For our clients who have advanced knowledge of the dangers starting January 1 (to join this group, Click Here and read the section of fiscal cliff articles) we offer a “Cliff Notes” version of the individual effects of the fiscal cliff. You can access this summary graphic by clicking this link. Remember there’s still plenty…

Hollywood’s Friday the 13th and Freddy Kruger can’t begin to compare to how scary this picture promises to be. Coming to a country (very) near you on January 1, 2013. Clients can E-mail us for a special video presentation with specific details on what’s involved. We’ve also compiled a listing of helpful articles which can…

  Detailed information of the peaks and valleys of the Fiscal Cliff Our last newsletter (see this link) contained general information and warnings about the financial and tax disaster referred to by the media as the “fiscal cliff.” We’ve been deluged with requests for more specific details on the effects of this scheduled legislation. Remember,…

Bruce Wayne (aka Batman) may be out to get Block (H & R), not the villainous Bain. Seems like  H&R  did a tax return comparison between the  wealthy  Mr. Wayne and a competing super-hero and made a 17- million- dollar mistake on his tax projection. In the first calculation (now pulled from their website) Block had Bruce Wayne reducing…

  Is there a way to deduct a political donation?  The answer may surprise you.     More than most tax questions, the answer to this one really is – “It depends.” It depends upon whether the  donation was given to: a social welfare  group, a trade association, a PAC, a so-called Super PAC, or…

IRS just announced the new (and higher) limits on 401(k) plans etc. Here’s a summary for use in 2013 tax planning.   The  inflation-adjustments for 2013 include: Gift Tax Exemption:  $14,000 (up $1,000 from 2012) Contribution Limit for 401(k)/403(b)/457 Plans:  $17,500 (up $500 from 2012) Catch-Up Contribution Limit (Age 50+) for 401(k)/403(b)/457 Plans:  $5,500 (same as 2012)…

With apologies to Charles Dickens, here’s an easy to understand graphic of how the upcoming tax plans measure up. Source: www.backtaxeshelp.com

As children return to school across the country, families know that can also mean a return to the practice field, whether through school sports teams or community sports programs and often parents may find themselves on the sidelines as a volunteer coach. It can be especially rewarding to teach children the skill sets of a…

Wouldn’t it be helpful with your company’s cash flow if you could just not remit the social security and medicare withholding taxes? We don’t recommend this as a strategy but, according to the US Inspector General, it’s working pretty well for some Federal agencies. These Federal agencies owe over 14 million of back payroll taxes…

CPA gives 3 minute summary of the new Medicare tax

As with most tax questions it depends. Although (as a general rule) corporations are exempt from this requirement, there are some exceptions. See the list below and be sure to E-Mail us if questions. Reportable payments to corporations. The following payments made to corporations generally must be reported on Form 1099-MISC. Medical and health care payments…

Let’s have a 289% increase on dividend earnings. That’ll really make people want to [sarcasm intended] buy into American business. Actually, there is nothing that will damage the market performance worse than this. If you own investments and would like them to increase in value, I’d make my voice known on this.

Looks like the argument for the rich paying their “fair share” is getting weaker and weaker. Hover your mouse over the chart to see the graphic proof of who really pays their fair share-Part I. Facts are stubborn things and the fact is that the top 5% of earners have gone from shouldering about 28%…

I get asked this question almost every week. Here’s some helpful stats from our friends at the National Taxpayer’s Union. Remember this question. If a quarter of the income paying almost 90% of the tax bite is not “Fair”, then what is Fair? 98%? 115% Pro-rata cuts benefit all taxpayers equally – and that’s as…

We always like to look at the positive side of things. As bad as CD rates in the US are for investors, you could have to deal with  French T-Bills which sell at a negative interest rate! I know that’s hard to believe, but here’s the AP news release: “. . . France, the No.…

We’re not kidding about the higher part as the new capital gain rates (remember the “capital” in capitalism). Just put your mouse over the picture to see proof that capital gains could go as high as 25% in 2013 ( a 67% increase)! The Wall St Journal says it best in their July 2, 2012…

The text of this conversation is printed below. Will Smith: I have no issue with paying taxes and whatever needs to be done for my country to grow. I believe very firmly that my ability to sit here—I’m a black man who didn’t go to college, yet I get to travel around the world and…

  We would simply overstate your net income by 384%!   Not surprisingly, the White House and Congress speak of the yearly deficit in amounts of 1.3 trillion.  However, if we use the same accounting rules that your business and my business are required to follow, the numbers change to roughly 5 trillion. Most financial…

  One of the tests to claim a dependent is that the person must be a qualifying child or relative.  Like most things with IRS, the meaning of their terms is never simple.  Here are some of the tests used to qualify your dependent as a write-off. Tests To Be a Qualifying Child Tests To…

    by Rick Viall (Guest Editor)    How safe is private information when stored electronically?   You may not want to know the answer to that question. But if you’re just a bit curious, consider visiting privacyrights.org/data-breach. The site allows you to scroll through a frequently updated chronological list of reported breaches of private…

Why wouldn’t we let them pay?  The non-payers (but still voters) have almost reached 51%  

For clients using Quickbooks, here’s a useful tip from one of our most trusted sources for software training. The instructors at K2 Enterprises will walk you through the process of limiting your Quickbooks data file to the current year. This will make QB run faster and more efficiently, but this does not solve the IRS…

by Guest EditorRick Viall  rviall@viallins.com Millions of Americans donate time—their most valuable asset—to serve as a volunteer board member on non-profits, booster clubs, churches, PTAs and civic organizations, just to name a few. The decisions these folks make can have a dramatic impact on their respective organization—and not always for the better. If a volunteer…

by Guest EditorRick Viall  rviall@viallins.com How safe is private information when stored electronically? You may not want to know the answer to that question. But if you’re just a bit curious, consider visiting privacyrights.org/data-breach. The site allows you to scroll through a frequently updated chronological list of reported breaches of private data. Some data are…

by Guest EditorRick Viall  rviall@viallins.com Remember the days of curling up to the radio on a Saturday night, torturing yourself through commercials and lame tunes just to be able to crank it when Mr. DJ played your favorite song? No longer does one require the patience to spend an entire evening anticipating the next round…

As if things weren’t bad enough, now the less-than-sterling level of IRS service just got worse. It’s not just my opinion, check out this eye-opening article from “Forbes.”    IRS Gone Bad: Are Things About to Get Even Worse?   The details aren’t all that important. Basically, I called the IRS to discuss a client’s tax…

This Wall Street Journal Article contains a good overview of the tax breaks available for special education costs. “More than six million children in the U.S. fall into the “special needs” category, and their ranks are expanding. The number of those affected by one developmental disability alone—autism—grew more than 70% between 2005 and 2010. The…

  This article highlights difficulties that some senior citizens have had with annuities.    Arizona seniors lost millions in annuity fees, lawsuits say  Lawsuits highlight risks for elderly of investment choices   by Robert Anglen – Nov. 7, 2011 12:00 AM-The Arizona Republic   Hundreds of Arizona senior citizens cashed in their retirement investments and paid millions of dollars in unnecessary fees,…

This is not the theory discovered by Einstein, but the one that states that certain tax advantages may be disallowed if you sell an asset to someone (or a company) that the tax code calls  a “related party.” Simply put, selling a capital asset at a loss to any of the following entities will cause the loss…

Not only are there several different types of tax credits and deductions for education, but   they can vary according to status within college (Freshman,Senior, etc.) and your level of income. This article from the Wall Street Journal gives a basic overview of what’s available.     As always, contact us before acting on this or any tax credit. …

Putting things into perspective by removing 8 zeros  It’s amazing what simple math can show: An analysis of the numbers below reveals why the average household budget is far better managed than the budget in Washington!      -Why S&P downgraded  the US credit rating • U.S. Tax revenue: $2,170,000,000,000 • Fed budget: $3,820,000,000,000 •…

Sadly, this could be the legacy you leave to your heirs. Think about the results this would produce and then email us for some solutions. What Happens With No Will? LAST WILL AND TESTAMENT OF JOHN DOE (WHO DIED WITHOUT A WILL) I, John Doe, of Nimrod, Missouri, hereby do make, publish and declare this…

Here are the average deductions, by level of income, based on the latest available IRS stats. Average Itemized Deductions         Adjusted Gross Income Medical Expenses Taxes Interest Charitable Contributions $15,000 to $30,000 $7,074 $3,147 $9,245 $2,189 $30,000 to $50,000 $6,153 $3,830 $9,055 $2,189 $50,000 to $100,000 $7,102 $6,050 $10,659 $2,693 $100,000 to…

A Will to Live by It’s never too early to make a living will. Have you started one? By Rosemary Carlson • Bankrate.com [Breaking news- The Georgia State Bar has made available a free sample medical directive for your use. E-mail us for a free copy.] It could happen at any time. Walk across the street and…

Most of the time we’re stuck with tax cost being what we paid for a stock, asset, real estate, etc… but sometimes this can change.

    I recently spoke to a client in North Atlanta whose business storefront suffered damage from the riots in the city.  Although a deductible casualty loss was the last thing on their mind, it might be helpful to cover this topic as it relates to damage to your business property. The recent riots in…

Work Opportunity Tax Credit extended through 2020 If you’re a business owner, be aware that a recent tax law extended a credit for hiring individuals from one or more targeted groups. Employers can qualify for a valuable tax credit known as the Work Opportunity Tax Credit (WOTC). Generally, an employer is eligible for the credit…

Don’t fall for newest IRS scam

In parts one and two of our ID Theft series, the focus was on an outsider taking your money. Today our guest editor, Judge Kathy Brown Valencia, focuses on a different aspect of ID theft. What if a member of your business team uses ID Theft to place the blame on your business? We urge…

Among all the talk of this and that SBA loans to help business activities, we thought we’d cut through the clutter of acronyms. For background information, read this post first to understand the basics. First of all, an EIDL (Economic Injury Disaster Loans) isn’t new. It’s an existing program administered through the Small Business Administration…

It seems as though every business has an interest in obtaining some help from the SBA. While the process is complicated, the options are not. To help you decide which type of loan you may need, we offer the summary below. Bear in mind that this is not a DIY project. We’re here to help.

Due to the Coronavirus problems, we’ve received a bunch of questions from business owners about SBA Loans. The slide show below will walk you thru: Who can qualify, What are the requirements,  What are the terms,  and how we can help you apply    

Don’t fall for newest IRS scam

Sales are down, so we need to cut prices right? Not necessarily! The truth illustrated in the video below shows that price-cutting is almost never the way to grow profits. The video shows that, at a 35% profit margin, a 10% price cut means you must increase sales by 40% just to stay even. Hard…

It’s easy to forget about the business use of your personal car. Here’s how to calculate this deduction for all your business miles.

Holiday parties and gifts can help show your appreciation and provide tax breaks With Thanksgiving behind us, the holiday season is in full swing. At this time of year, your business may want to show its gratitude to employees and customers by giving them gifts or hosting holiday parties. It’s a good idea to understand…

The new deduction of 20% of qualified business income (QBI) has been a source of confusion for clients (and accountants as well). But given that this is a deduction that you can obtain without spending additional money from your business, it’s well worth some effort to understand. You can find what defines a SSTB (see…

Section 1202 allows you to sell qualified small business stock (QSBS) on a tax-free basis! Now, add to this no-tax-on-sale benefit to the 21 percent corporate tax rate from the Tax Cuts and Jobs Act, and you have a significant tax planning opportunity. Let’s just suppose the following: You sell your C corporation stock. The…

Bartering: A taxable transaction even if your business exchanges no cash It’s good to read the above sentence a couple of times before proceeding to the rest of this post. A small local business may find it beneficial to barter for goods and services instead of paying cash for them. If your business engages in…

I doubt there’s a more common question that I get from business owners that sell a product than -“How does the Supreme Court Wayfair decision affect me collecting sales tax from the products that I sell outside of Georgia?” Books have been written on this, but the short version is that until the recent Supreme…

  In chess (as in business), it’s good to be able to think three moves ahead. This is especially true when dealing with IRS auditors. Wouldn’t it be nice if you could read the plan on how they’ll review your books weeks before they came for their appointment? Well wish no more – this information…

We ought to be always learning about most everything in life. But it’s especially important to keep current on ways to protect the assets that you’ve worked so hard for over the years. It today’s litigious climate you can’t be too careful. The audio podcast below describes how to do this. Although intended for Doctors,…

We’ve published a lot of this topic but sometimes less is more. On the chart below, we take 12 different types of business meals and show how tax reform affects your tax deduction. Remember, you still need to document the 5 W’s to make the deduction withstand IRS scrutiny:   Who What (dollar amount and…

Most clients don’t really need to know all the aspects of Tax Reform. But a quick reference guide can be helpful. From the new rules on alimony to 529 plans to mortgage interest limitations to meals and entertainment and the new 20% business income deduction – here’s the tip sheet you’ll want to print and keep…

  We’re in the new year now. and it’s never too early to start saving taxes. The reason we call this the “no-brainer” of tax planning is simple.      Amounts that are timely contributed to your Simple-IRA, 401(k), SEP-IRA, etc. are fully deductible, These amounts enjoy tax-deferred growth (the 8th wonder of the financial…

How you define “Real Estate Investor” and “Real Estate Dealer” can make a huge difference in your taxes. Let’s take a look at how big a difference you can make in the tax bite. Say you have a $90,000 profit on the sale of a property. • Dealer taxes could be as high as $46,017. •…

Is there still time to pay 2018 bonuses and deduct them on your 2018 return? [Editor’s note: This post pertains to bonuses paid to your employees and non-owners. Special rules apply to related parties, so be sure to contact us before venturing into that area. That said, let’s discuss how to reward your team members…

7 last-minute tax moves for your business Postpone invoices. If your business uses the cash method of accounting, and it would benefit from deferring income to next year, wait until early 2019 to send invoices. Accrual-basis businesses can defer recognition of certain advance payments for products to be delivered or services to be provided next…

When holiday gifts and parties are deductible or taxable The holiday season is a great time for businesses to show their appreciation for employees and customers by giving them gifts or hosting holiday parties. Before you begin shopping or sending out invitations, though, it’s a good idea to find out whether the expense is tax…

It’s easy to forget about the business use of your personal car. Here’s how to calculate this deduction for all your business miles.

How it pays to keep it all in the family!

What IRS got from the new spending bill

IRS expands bonus depreciation for tax year 2017

Has the deduction for business entertainment been eliminated?

Who must file form 1099?

Remember our “95% rule” in your 22017 planning

Our advice on buying a business auto now or next year

It’s easy to forget about the business use of your personal car. Here’s how to calculate this deduction for all your business miles.

Great advice for every business owner

In husband-wife businesses – who takes the money can make a big difference.

How to use the AFR to save taxes.

The many faces of tax-based costs

Most of us have heard about ransomware and the damage it can cause.  The newest phishing malware purports to be a questionnaire from the IRS and FBI. Contrary to what you’d expect, the IRS’ website has a helpful description and warning which is reproduced below. WASHINGTON — The Internal Revenue Service today warned people to avoid a…

How to “supersize” your deduction for meals

Are loans from your company a good idea?

Is your business network at risk for a cyber attack?

Hiring family members may save your company some payroll taxes!

Hiring your children can save taxes for your business and your family

We get a lot of questions about what constitutes business mileage (deductible) and what is defined as a commuting expense (non-deductible) – here’s some answers.

Reimbursing employees for education expenses can both strengthen the capabilities of your staff and help you retain them.

Operating in another state means possibly being subject to taxation in that state.

Bartering might seem like something that happened only in ancient times, but the practice is still common today

Quick Tax Facts for 2017

These are your personal “safe zones” from the tax man when you use depreciation.

Guest Editor Dr. Walter Williams’ commentary on starting a business

How to save taxes by smart hiring.

Tax credits reduce tax liability dollar-for-dollar, making them particularly valuable. One of them might not be available after 2017.

SEPs are sometimes regarded as the no-brainer for high-income small-business owners who don’t currently have tax-advantaged retirement plans.

We explain an oft-overlooked deduction.

Why bonus depreciation can be very helpful.

Small businesses get a break for helping with employee’s healthcare.

It’s easy to forget about the business use of your personal car. Here’s how to calculate this deduction for all your business miles.

Should you buy business assets in December?

Here’s how to deduct the expense now but pay it later.

How to use the IRS per-diem amounts for travel expense.

Are you being tax-smart to trade in your old business vehicle?

Selling your business? Installment reporting may save both time and tax.

The new overtime rules- a one page sumary.

As a shareholder and an employee. your corporation pays you a salary. Is it reasonable in the eyes of the IRS?

what’s the real effect on wage earners?

If you combine a business trip with a vacation – what can you deduct?

Your company may be responsible for preparing the 1095. See below to find out if you’re responsible.

It’s easy to forget about the business use of your personal car. Here’s how to calculate this deduction for all your business miles.

Bookmark this page for a quick reference to the numbers you’ll need this year.

How to use the AFR to save taxes.

What’s the big deal with 1099s?

A magic trick by Congress!

Despite Obamacare, there is a way that you may be able to reimburse your employee’s medical costs.

Urban legends abound on this subject. Here are the current rules.

Got a problem with your accounting software. Get remote support instantly!

Occasionally IRS will surprise you and do something that actually makes common sense for our small business clients.

New IRS regs add time and expense to every business’ depreciation calculation.

Here’s an update on the changes in the Minimum Wage amounts for the coming year.

It’s easy to forget about the business use of your personal car. Here’s how to calculate this deduction for all your business miles.

Here’s the good news – as of December 19, 2014, IRS has updated their website with specific instructions on this topic.

Here’s a complete list of qualified plan limitations, You may want to bookmark this page in your browser for use now and next year.

Do you have the concept of Excel Pivot Tables but need help in creating reports? This video can help.

[Editor’s note:] To fully understand why accountants react strongly to being blamed for corporate inversion, please read Part I – Corporate Inversion the new buzz word of the statist. Well,well,well. It seems like Washington is keeping their buck-passing deceptive skills honed to a sharp edge.  The President has gone so far as to blame CPAs and…

Corporate inversions – the new buzz word of the statist

If you have a family business – here’s how to save taxes and keep profits in the family circle.

Need to know when the Obamacare provisions may effect your business? Here’s the answer!

Some of the most powerful planning tools are the tax-sheltered savings plans available to almost every business. But these tools won’t help you if you don’t know how they work. We’ve published an executive summary for you below. If you’d like to pay less tax and increase your retirement fund, review the chart below. We…

The newest computer bug that could enable hackers to obtain your password, credit card data, and other encrypted data is known as the Heartbleed SSL exploit. Among those affected are Google, Google Plus, Yahoo, and a host of other major players in the web services market. You can read about what it is at this…

French citizens speak out about the economic reforms that they see hurting their nation. The young, the productive, and the entrepreneurial types seem to be deserting France in large numbers and relocating to more free-market based countries. We wonder if America (as it begins to pass similar reforms) will learn from the testimony of those…

Here’s a belated holiday gift from Georgia and Washington to employers.

A dollar released from taxation will create a new job-JFK

IRS publishes new depreciation guidelines for 2014!

We show you how to avoid pitfalls and traps in Obamacare.

With just one employee you could have an Obamacare report due!

  Since our first post on deductions that you may have missed, several more items have come to mind that we find clients tend to forget or just don’t know that they’re existent. Most clients either volunteer for some charity work, serve on the boards of private or public foundations, help out at a shelter,…

How IRS’ misuse of a credit card affects your tax planning

Detroit is in the news since their bankruptcy filing, but the bigger question that we should be asking is why large cities are having problems.

A great business quote from the author of Good to Great

It’s easy to forget about the business use of your personal car. Here’s how to calculate this deduction for all your business miles.

Hover your mouse over the chart for a long-term analysis.

A 401(k) is just the beginning of the good things that you can do for your employees and for yourself. Take a look at the data below.

If you understand how the free markets should work, you’ll tend to do a lot better in business. Here’s one of the greatest living speakers on the subject – Dr. Walter Williams.  

Last year’s tax returns included two new questions. They both pertain to 1099 payments and, if unanswered, prevented you from E-Filing. If you’ve worried about 1099 vs employee problems with the IRS, there’s now a chance to wipe the slate of the past clean and start over. IRS is willing to forgo the audit of…

Did you ever wish that when you do business in another state, you could quickly check the forms, filing requirements, etc. for that state with one click? The tool below should be just what you need. Using the scroll bars, find the state you wish to check and then click on it. You’ll be linked…

It might be more appropriate to say that we small business owners dodged a boomerang because this issue is coming back in 2014. Our regular readers know that we sent a red alert out a few weeks ago about the most harmful tax regs that we’ve seen in a long time. You can refresh your…

By Guest Editor Rick Viall  rviall@viallins.com A good friend of mine who is a claims adjuster is seeing it over and over. People have lost their business data in hurricane Sandy. Even if they can dry out their place of business and get restocked they will not be able to file a tax return and…

Now is the time to “repair” the deduction for repairs! You’ll have a hard time believing this one, but here are the facts. We’ve sent our business clients the following letter to help them understand the problem they face for 2012 taxes. To all business property owners: I am told the 2010 US Census reports…

To paraphrase the country western song, your cheating chart is going to tell on you! Fellow CPA Carlton Collins shows common ways that data presentation via charts can be unethically manipulated to change the reader’s conclusions Don’t be fooled by government (or other) data that sounds too good to be true. Learn to be discerning…

See the second video if you still believe it’s possible to administer the health care debacle.   Here’s just how easy it is to calculate.

An individual is liable for Additional Medicare Tax if the individual’s wages, other compensation, or self-employment income
(together with that of his or her spouse if filing a joint return) exceed the threshold amount for the individual’s filing status:

Employers Need to Act Soon to Get Expanded   Credit for Hiring Vets   Special Edition Tax Tip 2012-11 Employers that hired unemployed veterans during late 2011 and early 2012 had an expanded period to request the required certification for claiming the expanded Work Opportunity Tax Credit (WOTC). That expanded period ends on Tuesday, June…

You heard us right-they have no value. Jack Welch the brilliant CEO of General Electric agrees with me (don’t confuse him with the current clown at the head of GE). Welch did away with all the wasted weeks of the budget process and focused on creating projections instead. He then held the departments accounting to the projection of income and expense that they participated in creating.

Payroll Tax Cut Extended for All of 2012   On February 22, 2012, the Temporary Payroll Tax Cut Continuation Act of 2011 was permanently extended for all of 2012. This extends the two percentage point payroll tax cut for employees, continuing the reduction of their social security tax withholding rate from 6.2 percent to 4.2…

The IRS has launched a new program that may help employers to resolve past worker classification issues (Independent Contractor vs. Employee) at a relatively low tax cost by voluntarily reclassifying their workers. As regular readers know, IRS’ attitude on this issue has been less than helpful in the past. Personally, I do not know of…

Clients with S-Corps – Don’t forget that you cannot deduct your health insurance costs without loading them onto your W-2. Here’s how to do it.

We’ve known for some time of the IRS’ stated intent to educate at least one member of every audit team with advanced knowledge of Quickbooks and Peachtree Accounting. Given that these two programs have over 80% of the small business software market, one could understand this goal. The unsettling news is that IRS intends to…

  Here’s some good advice from the iowabiz.com site about the worst place to borrow money.  [The 2% IRS penalty referred to below is equal to an APR of about 25% on a 30 day loan!] by Joe KristanDecember 1, 2011 Every entrepreneur struggling to stave off hungry creditors has probably taken a wistful look…

This is not the theory discovered by Einstein, but the one that states that certain tax advantages may be disallowed if you sell an asset to someone (or a company) that the tax code calls  a “related party.” Simply put, selling a capital asset at a loss to any of the following entities will cause the loss…

  President Obama has signed into law increased tax credits for hiring certain veterans. The credits are part of the Work Opportunity Credit, which requires that employers certify through state jobs agencies that employees qualify for the credits. The credit rules, effective for veterans hired as new employees: – A maximum $4,800 credit (40% of the…

As if the IRS wasn’t enough to deal with, now Quickbooks owners have another hidden trap that Intuit is just waiting for you to stumble into. The trap centers around the wording in the licensing agreement. Simply put, it’s not a per user license like most multi-user software. Instead, it’s a per person license. Let…

Income splitting. The government taxes the first $50,000 of corporate profits at a lower rate than the individual owners’ tax rates. Therefore, you one should split your C corporation’s income between yourself (or your S Corp) and the C corporation. This allows you to pay taxes on the salary you pay yourself at your individual…

  Depending on which definition you choose of what defines a “small business owner,” any new “millionaire tax” is going to disproportionately affect the group that creates the most new jobs in our country. A new US Treasury study indicates that over 70% percent of so-called millionaires hit with this type of tax are small business owners. Almost every business…

The answer is a very qualified yes. However, it’s not as simple as writing a check from your IRA. This Wall Street Journal article  gives some basic guidelines.  As the article clearly states, don’t do this on your own. Call us for professional help.Article excerpt “There are ways to use IRA and 401(k) funds to finance…