Home » Posts tagged 'Business'
Tag Archives: Business
IRS Tax Tip 2013-36: Home Office Deduction: a Tax Break for Those Who Work from Home
If you use part of your home for your business, you may qualify to deduct expenses for the business use of your home. Here are six facts from the IRS to help you determine if you qualify for the home office deduction.
1. Generally, in order to claim a deduction for a home office, you must use a part of your home exclusively and regularly for business purposes. In addition, the part of your home that you use for business purposes must also be:
• your principal place of business, or
• a place where you meet with patients, clients or customers in the normal course of your business, or
• a separate structure not attached to your home. Examples might include a studio, workshop, garage or barn. In this case, the structure does not have to be your principal place of business or a place where you meet patients, clients or customers.
2. You do not have to meet the exclusive use test if you use part of your home to store inventory or product samples. The exclusive use test also does not apply if you use part of your home as a daycare facility.
3. The home office deduction may include part of certain costs that you paid for having a home. For example, a part of the rent or allowable mortgage interest, real estate taxes and utilities could qualify. The amount you can deduct usually depends on the percentage of the home used for business.
4. The deduction for some expenses is limited if your gross income from the business use of your home is less than your total business expenses.
5. If you are self-employed, use Form 8829, Expenses for Business Use of Your Home, to figure the amount you can deduct. Report your deduction on Schedule C, Profit or Loss From Business.
6. If you are an employee, you must meet additional rules to claim the deduction. For example, in addition to the above tests, your business use must also be for your employer’s convenience.
For more information, see Publication 587, Business Use of Your Home. It’s available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Additional IRS Resources:
- Form 8829, Expenses for Business Use of Your Home
- Schedule C, Profit or Loss From Business
- Publication 587, Business Use of Your Home
Related articles
- A Home-Office Tax Deduction Refresher (businessweek.com)
- When Work at Home Yields Tax Deductions (forbes.com)
- How to Determine Your Home Office Qualifies for a Tax Deduction (business2community.com)
Tax Tips – What Employers Need to Know About Claiming the Small Business Health Care Tax Credit
Many small employers that pay at least half of the premiums for employee health insurance coverage under a qualifying arrangement may be eligible for the small business health care tax credit. This credit can enable small businesses and small tax-exempt organizations to offer health insurance coverage for the first time. It also helps those already offering health insurance coverage to maintain the coverage they already have. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ 25 or fewer workers with average income of $50,000 or less.
Here is what small employers need to know so they don’t miss out on the credit for tax year 2010:
- Hurricane Irene, Tropical Storm Lee and other recent disaster-related tax relief postponed certain tax filing and payment deadlines to Oct. 31, 2011. Qualifying businesses affected by these natural disasters still have time to file and claim the small employer health care credit on Form 8941 and claim it as part of the general business credit on Form 3800, which they would include with their tax return. For more information on the disaster relief visit IRS.gov.
- Sole proprietors who file Form 1040, Partners and S-corporation shareholders who report their income on Form 1040 and had requested an extension have until Oct. 17 to complete their returns. They would also use Form 8941 to calculate the small employer health care credit and claim it as a general business credit on Form 3800, reflected on line 53 of Form 1040.
- Tax-exempt organizations that file on a calendar year basis and requested an extension to file to Nov. 15 can use Form 8941 and then claim the credit on Form 990-T, Line 44f.
- Businesses who have already filed can still claim the credit. For small businesses that have already filed and later determine they are eligible for the credit, they can always file an amended 2010 tax return. Corporations use Form 1120X and individual sole proprietors use Form 1040X.
- Businesses that couldn’t use the credit in 2010 may be eligible to claim it in future years. Some businesses that already locked into health insurance plan structures and contributions for 2010 may not have had the opportunity to make any needed adjustments to qualify for the credit for 2010. So these businesses may be eligible to claim the credit on 2011 returns or in years beyond. Small employers can claim the credit for 2010 through 2013 and for two additional years beginning in 2014.
For tax years 2010 to 2013, the maximum credit for eligible small business employers is 35 percent of premiums paid and for eligible tax-exempt employers the maximum credit is 25 percent of premiums paid. Beginning in 2014, the maximum tax credit will go up to 50 percent of premiums paid by eligible small business employers and 35 percent of premiums paid by eligible tax-exempt organizations.
Additional information about eligibility requirements and calculating the credit can be found on the Small Business Health Care Tax Credit for Small Employers page of IRS.gov.
Links:
- Form 8941, Credit for Small Employer Health Insurance Premiums (PDF)
- Form 3800, General Business Credit (PDF)
- Small Business Health Care Tax Credit for Small Employers
HeLp fOr PeOpLe iN DiSaStEr SiTuAtIoNS
Help in Disaster Situations
|
Related articles
- Frustration grows for Texas fire evacuees (cbsnews.com)
- Two Die As Texas Wildfires Destroy Homes (news.sky.com)
- What’s Your Natural Disaster? (casasugar.com)
WooHoo Mileage Rate Increases to 55.5 Cents for Last 6 Months of Year
Katherman Kitts & Co. LLP Mileage Rates Update
WASHINGTON — The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.
The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51.
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2011. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.
“This year’s increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices,” said IRS Commissioner Doug Shulman. “We are taking this step so the reimbursement rate will be fair to taxpayers.”
While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.
The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.
The new six-month rate for computing deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.
The new rates are contained in Announcement 2011-40 on the optional standard mileage rates.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Mileage Rate Changes
| Purpose | Rates 1/1 through 6/30/11 | Rates 7/1 through 12/31/11 |
| Business | 51 | 55.5 |
| Medical/Moving | 19 | 23.5 |
| Charitable | 14 | 14 |
Related articles
- Standard Mileage Rates (whiteheadcpas.wordpress.com)
- Representatives ask IRS for mid-year hike of standard mileage rates (dontmesswithtaxes.typepad.com)
- IRS not likely to bump up optional standard mileage deduction rates … yet (dontmesswithtaxes.typepad.com)
IRS Patrol -Tax Credit For New Markets (NMTC) Proposed Changes
WASHINGTON — The U.S. Treasury Department and the Internal Revenue Service today announced proposed changes to the new markets tax credit (NMTC) program to encourage more investment in non-real estate businesses located in low-income communities.
Treasury and IRS are also seeking public comments on other potential changes that would promote greater investment in non-real estate operating businesses.
The new markets tax credit, created as part of the Community Renewal Tax Relief Act of 2000, provides incentives to invest in businesses in designated low-income communities.
Treasury and the IRS today filed a notice of proposed rulemaking and an advance notice of proposed rulemaking, which invites public comments and describes potential changes to the credit that might be made to facilitate more investment in non-real estate businesses. A notice of public hearing was also issued.
(REG-101826-11 and REG-114206-11 are available on the Federal Register website and will be published in the Federal Register on June 7.)
The proposed modifications to the credit are intended to promote greater investment in non-real estate businesses under the new markets tax credit program while still maintaining the structure of the credit that has been successful for other types of investments.
Potential changes to the tax credit include revising reinvestment requirements for entities investing in operating businesses, streamlining compliance requirements, and modifying ownership rules to reduce noncompliance risk over the course of an investment, among others.
Related articles
- For My Student Followers – an Explanation of IRS Guidance Sent Out Into The Cosmos (staciesmoretaxtips.wordpress.com)
Retirement Plans for Self-Employed People
Image via Wikipedia
Are you self-employed? Did you know you have many of the same options to save for retirement on a tax-deferred basis as employees participating in company plans?
Here are highlights of a few of your retirement plan options.
Savings Incentive Match Plan for Employees (SIMPLE IRA Plan)
- You can put all your net earnings from self-employment in the plan: up to $11,500 (plus an additional $2,500 if you’re 50 or older) in salary reduction contributions and either a 2% fixed contribution or a 3% matching contribution.
- Establish the plan:
- complete
- Form 5305-SIMPLE, Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) – for Use With a Designated Financial Institution,
- Form 5304-SIMPLE, Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) – Not for Use With a Designated Financial Institution, or
- an IRS-approved “prototype SIMPLE IRA plan” offered by many mutual funds, banks and other financial institutions, and by plan administration companies; and
- open a SIMPLE IRA through a bank or another financial institution.
- Set up a SIMPLE IRA plan at any time January 1 through October 1. If you became self-employed after October 1, you can set up a SIMPLE IRA plan for the year as soon as administratively feasible after your business starts.
Simplified Employee Pension (SEP)
-
Contribute as much as 25% of your net earnings from self-employment (not including contributions for yourself), up to $49,000.
- Establish the plan:
- complete
- Form 5305-SEP, Simplified Employee Pension – Individual Retirement Accounts Contribution Agreement, or
- an IRS-approved “prototype SEP plan” offered by many mutual funds, banks and other financial institutions, and by plan administration companies; and
- open a SEP-IRA through a bank or other financial institution.
Set up the SEP plan for a year as late as the due date (including extensions) of your income tax return for that year.
401(k) Plan
- Make salary deferrals up to $16,500 (plus an additional $5,500 if you’re 50 or older) of your compensation from the business either on a pre-tax basis or as a designated Roth contribution.
- Contribute up to an additional 25% of your net earnings from self-employment (not including contributions for yourself), up to $49,000 including salary deferrals.
- Tailor the plan to allow you access to the money in the plan through loans and hardship distributions.
- A one-participant 401(k) plan is sometimes referred to as a “solo-401(k),” “individual 401(k)” or “uni-401(k).” It is generally the same as other 401(k) plans, but because there are no other employees, other than the spouse, that work for the business, it is exempt from discrimination testing.
Other Defined Contribution Plans
- Profit-sharing plan: allows you to decide how much to contribute on an annual basis, up to 25% of compensation (not including contributions for yourself) or $49,000.
- Money purchase plan: requires you to contribute a fixed percentage of your income every year, up to 25% of compensation (not including contributions for yourself), according to a formula stated in the plan.
-
Traditional pension plan with a stated annual benefit you will receive at retirement, usually based on salary and years of service.
-
Benefit may also be defined based on a cash balance formula in a hypothetical individual account (a cash balance plan).
-
Maximum annual benefit can be up to $195,000.
-
Contributions are calculated by an actuary based on the benefit you set and other factors (your age, expected returns on plan investments, etc.); no other annual contribution limit applies.
Retirement plans for self-employed people were formerly referred to as “Keogh plans” after the law that first allowed unincorporated businesses to sponsor retirement plans. Since the law no longer distinguishes between corporate and other plan sponsors, the term is seldom used.
Dollar figures are for 2011 and are subject to annual cost-of-living adjustments.
Related articles
- Self Directed Brokerage Accounts (401k-plan-blog.com)
- SBO 401K for Partnership Businesses: Easy Method of Making Retirement Contributions (401k-plan-blog.com)
- 100% Contributions with Solo 401k (401k-plan-blog.com)
Recovering Bubblehead- Unfortunately, There is No 12 Step Program
Ally McBeal the unrecovered Bubblehead
By Stacie Kitts, CPA
I like to think of myself as a recovering recovered bubblehead. You might know the type, she was portrayed by Calista Flockhart in the late 90’s as Ally McBeal. The character was described as “annoying and demeaning to women (specially professional women) because of her perceived flightiness, lack of [knowledge], short skirts“, and….. well you get the point.
As ridiculous as it sounds, there was a time – a long time ago in a galaxy far far away – when I thought I had found the right combo. Often sporting an outfit that only Ally McBeal (an imaginary made up TV person, so like no real person should have tried to pull this off) would wear, I was, sadly, the “sexy” CPA.
Ludicrous, I know!
This style choice did not endear me to my female colleagues. And had you met me in those days, you might not have noticed that I had a brain at all. This, of course, is not the impression you want to make when your brain is what you are selling.
Flash forward ……. now we are visiting my solo “stay home” tax practice period. This quarter decade represented my relaxed period, where comfort was my style of choice. My old warn out sweats and stylish jammie sets worn around the home office probably earned me the label of “comfy” accountant. Also, NOT the serious accountant image you want to project, particularly when you are trying to convince a person who has amassed a considerable amount of wealth that you are the advisor who is going to help them keep it.
Interestingly, of these two periods, the comfy accountant was/is the hardest to overcome – a few enlightening moments, and some mentored wisdom eradicated the “sexy” CPA fairly quickly. But taking the comfy out of accounting was like a slow excruciating death.
Even so, it’s done. These days I work in an office building and I look forward to casual Fridays where I can throw on some jeans with my conservative cardigan. I might even spice it up with some colorful shoes or fun jewelry. But for the most part, first impressions are my main concern and my style choices scream I’m confident, educated, serious and professional.
~~~~~~~~~~~~~~~~~~~~~~~~~~
The Blouse
Your fashion choices actually play a large part in selling you and my own fashion history is testament to this.
Being a recovered fashion bubble head probably explains why I recently had a slight meltdown when my assistant commented on how cute my suit was but added, “Your top makes you look like a big orange pumpkin.”
Let me explain.
That morning I had arrived at work wearing a conservative black suit over a cute orange top with cute orange shoes carrying my cute salmon colored purse. Just the right >pop< of color. I felt completely prepared for my big pitch to a large potential client. I was clear on the tax issues and confident in my ability to sell it. But that was before I realized that my clothing choice looked like a Halloween inspired disaster.
I hurried to the bathroom where I stood in front of the full-length mirror and thought, Oh-My-God, she’s right. Why did I pick orange and black? I look ridiculous.
Now my confidence is waning. I can’t get the pumpkin image out of my head. How was I going to sell ME and MY skills when I looked like “that” lady. You know, the one that can’t possibly own a mirror because if she did she wouldn’t be wearing that!!!!!!
My head starts to fill with possible solutions: go home and change – nope not enough time, swap blouses with a co-worker, nope not an option, run to the mall – yes there might be enough time for that there’s one right across the street. I gathered all the paraphernalia I needed for the meeting, business cards, portfolio, flyer about the company etc. and head out.
I found parking rather quickly and felt the relief flooding through my system. I ran toward the door and pull on the handle. Locked!!! It’s locked. I look at the hours – “OPEN 10am”
10AM?
10AM, what? …..Shut down by my lack of knowledge about mall hours.
I pulled out my cell phone and click a button so I could see the time. 9:30 – No time to wait until it opens, find an appropriate blouse and still get to the meeting on time.
I’m screwed, I’m screwed, I’m screwed.
Despondent, I slowly slink back to my car and try to convince myself that, it’s no big deal, you can still sell it, it’s not that bad, forget it. Ya right, I was a wreck. So as I headed toward certain rejection, I resolved myself to make my pitch just the same.
But miracle of miracles, not only did I arrive early to the meeting, but by some grace of god, the meeting was across the street from a mall. A mall that was open!
It wasn’t too late, I might pull it off. I am elated, rather giddy in fact. I top the escalator and see just the perfect thing. How wonderful. I try it on and it looks great. Stepping out of the dressing room, I spot a manned sales register.
Hello, I’m in a hurry can you ring this up for me really fast?
I am sorry dear, but we just opened and it will take some time to get the registers up.
HUH, really, what? There’s noo time? NooooTime!
At this point, I’m thinking run, run with the cute blouse, go ahead make a dash for it…..it’s your only hope….It was amazing the amount of thoughts that flowed through my mind in those few seconds. Could I get away with it, I would come back later and pay, maybe she would hold onto my wedding ring for collateral.
And then…..
She must have read the desperation in my expression because she says, “Wait, I think the register over here is up. Let’s see.” And glorious day, it was.
Sporting my new blouse with renewed confidence and relieved that I wasn’t a fugitive from justice, I arrived in time, made my pitch and yes, landed the client.
Hurray, disaster averted- thanks to the right first impression and my cute new blouse!
Messing with Their Taxes Creates All Kinds of Bad for a San Juan Couple
Avoid a Crime Scene and hire the right accountant
By Stacie Kitts, CPA
When I read a story about someone who appears to have been messing with the tax system for some thirty years, it makes me wonder…..who in the heck did their taxes, and why did it take so long to get busted.
The Orange County District Attorney is reporting that James and Dorothy Klinger, owners of Jamo’s Gardening and Modern Tree Services Inc. are charged with 28 counts of failing to file a return with intent to evade tax, 28 counts of willful failure to pay taxes, and some felony counts for lying about their business to a worker’s compensation insurance company.
These two are looking at spending the rest of their lives in prison if convicted.
They appear to have used an old school tax crook technique and kept two sets of books. You know, one that showed the “real” dollars and one that was a work of fiction.
Was it worth it? You decide….
They are accused of underreporting about $3.6 million in income and $3 million in wages. This translates to about 1.9 million that should have been paid over in taxes (give or take) that they got to keep – for a little while anyway.
I don’t know about you, but $2 million isn’t enough money to risk a 40 year prison sentence. Am I Right!?
Related articles
- Anonymously ‘squeal’ on tax cheats (dontmesswithtaxes.typepad.com)
- Top 10 tax tips from CPAs, also known as Letterman’s annual spoofing of taxes (dontmesswithtaxes.typepad.com)
- IRS Reminds Taxpayers How To Provide Earthquake Relief For Japan (staciesmoretaxtips.wordpress.com)
- 2011 Depreciation Deduction Limitations – (and a classic video from The Cars) (staciesmoretaxtips.wordpress.com)
Ten Tax Tips For Farmers at Tax Time
Image via Wikipedia
Farmers, does your tax preparer know these 10 important tax tips? No? Yes? They should….
If you are in the business of farming, there are a number of tax issues that you should consider before filing your federal tax return. The IRS has compiled a list of 10 things that farmers may want to know before filing their federal tax return.
- Crop Insurance Proceeds You must include in income any crop insurance proceeds you receive as the result of crop damage. You generally include them in the year you receive them.
- Sales Caused by Weather-Related Condition If you sell more livestock, including poultry, than you normally would in a year because of weather-related conditions, you may be able to choose to postpone reporting the gain from selling the additional animals due to the weather until the next year.
- Farm Income Averaging You may be able to average all or some of your current year’s farm income by allocating it to the three prior years. This may lower your current year tax if your current year income from farming is high, and your taxable income from one or more of the three prior years was low. This method does not change your prior year tax, it only uses the prior year information to determine your current year tax.
- Deductible Farm Expenses The ordinary and necessary costs of operating a farm for profit are deductible business expenses. An ordinary expense is an expense that is common and accepted in the farming business. A necessary expense is one that is appropriate for the business.
- Employeesand hired help You can deduct reasonable wages paid for labor hired to perform your farming operations. This would include full-time employees as well as part-time workers.
- Items Purchased for Resale You may be able to deduct the cost of livestock and other items purchased for resale in the year of sale. This cost includes freight charges for transporting the livestock to the farm.
- Net Operating Losses If your deductible expenses from operating your farm are more than your other income for the year, you may have a net operating loss. If you have a net operating loss this year, you can carry it over to other years and deduct it. You may be able to get a refund of part or all of the income tax you paid for past years, or you may be able to reduce your tax in future years.
- Repayment of loans You cannot deduct the repayment of a loan if the loan proceeds are used for personal expenses. However, if you use the proceeds of the loan for your farming business, you can deduct the interest that you pay on the loan.
- Fuel and Road Use You may be eligible to claim a credit or refund of federal excise taxes on fuel used on a farm for farming purposes.
- Farmers Tax Guide More information about farm income and deductions can be found in IRS Publication 225, Farmer’s Tax Guide which is available at IRS.gov or by calling the IRS at 800-TAX-FORM (800-829-3676).
Links:
Related Articles
- IRS Reminds Taxpayers How To Provide Earthquake Relief For Japan (staciesmoretaxtips.wordpress.com)
Stacie’s More Tax Tips Makes a Top Something or Other List
By Stacie Clifford Kitts, CPA
Seems like I am always reading someones top something… tax/accounting/business list and it always makes me wonder – just how does someone get on this list anyway?????
Like for example take Accounting Today/Tomorrow/WebCPA. This group publishes a top 100 most influential people in the accounting industry list. Every year I read it over and wonder – how do they decide who is “most influential” anyway? I mean really, is this a scientific thing? Are there compliance criteria – like a PPC guide “How to Determine the Most Influential People in Accounting” – we are talking about accountants here – I assume there’s a checklist?
I do hope its more scientific than just a bunch of journalists sitting around a conference table, sipping coffee and munching on donuts while someone writes names on a white board. Just picture it, a bunch of bored staff writers some twisting slightly in their chairs, some lounging about, others lazily calling out names. Then someone says, “hey cross off Sally Johnson, she was rude to me at blah blah conference. she doesn’t make it this year.” Yowser,I hope it doesn’t work like that!!!
Recently, I’ve been contacted by a “.com site” or two. These sites were letting me know that I could be listed on a top something list….so –be sure to mention it at Stacie’s More Tax Tips- wont you?
While I get how this whole quid pro quo thingy works, I have declined 100% of the “link to us, we’ll link to you” offers. I’ve even turned down click for payment offers because I didn’t think the link topics where appropriate for my my site.
But you know what, I’ve decided that gosh darn my blog is interesting.. And yes siree, I deserve to be on a top anything list.. And, it has absolutely nothing to do with quid pro quo. Nope, they of course see the genius that is my blog and feel compelled to share. So thanks to bschool.com for naming Stacie’s More Tax Tips in the 50 best Blogs to Get You Through Tax Season.
Oh by the way, the picture is of me and the grandbaby enjoying Christmas day with the family!
Related Articles
- Ping Your Way To a Successful Social Marketing Strategy – It’s A Whole Lot Better Than Being an A-Hole (staciesmoretaxtips.wordpress.com)
- 2010 in Review – The Health of Stacie’s More Tax Tips – I Feel Like Doing The Snoopy Dance! (staciesmoretaxtips.wordpress.com)
- Snubbed Again! And a Sincere Apology (staciesmoretaxtips.wordpress.com)
- Are You All a Twitter About Tax News? Now You Can Follow The IRS @IRSnews (staciesmoretaxtips.wordpress.com)
- IRS Presents:Ten Things Tax-Exempt Organizations Need to Know About the Oct. 15 Due Date (This is a how to on keeping your exempt status) (staciesmoretaxtips.wordpress.com)
- Accounting blogs for the kids (dontmesswithtaxes.typepad.com)
- Picking Apart the IRS’ Top 10 Tax Time Tips (staciesmoretaxtips.wordpress.com)
2011 Standard Mileage Rates
Look out, the IRS announced the new mileage rates for 2011. Read on for more information.
WASHINGTON — The Internal Revenue Service today issued the 2011 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2011, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 51 cents per mile for business miles driven
- 19 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Revenue Procedure 2010-51 contains additional details regarding the standard mileage rates.
Related Articles
- Business Use of Vehicles (turbotax.intuit.com)
- Depreciation of Business Assets (turbotax.intuit.com)
- Charitable Work Helps Your Bottom Line (turbotax.intuit.com)
- Taking Business Tax Deductions (turbotax.intuit.com)
- California Budget Crisis: Lawmakers Keep Decades Old Luxury Vehicle Perk (huffingtonpost.com)
Jason Blumer CPA, He’s a Funny Guy
Jason Blumer CPA, the managing shareholder of Blumer & Associates is a funny guy. No really. It’s true. There is proof.
I also really like his website:
We believe your numbers are simply telling stories about the relationships, processes and knowledge running deeply through your business and life. The production of numbers is not the end goal of our firm. We are here to bring clarity to the reasons why your numbers are what they are. We are a next-generation firm, and we are doing this all over the dang world!
That’s some nice copy – wish I had written it! AND according to Accounting Tomorrow – Jason is the second place winner in the Atom’s Got Talent Video. Congratulations Jason!
Finally a Tax Law Change That Will Make Our Lives Easier. Well, unless you are a stock broker or mutual fund company that is. 1099-B Reporting Expanded
Mutual Fund
Stacie says: Good news for taxpayers who receive Forms 1099-B Broker and Barter Exchange Transactions. Starting in 2011, these forms will include the cost or other basis information of stock and mutual fund shares sold or exchanged during the year. I can’t tell you how happy this makes me. Countless hours are spent each year by preparers and taxpayers alike trying to find the basis information on stock sales. I have to say that this law change falls within one of my more favored.
WASHINGTON — The Internal Revenue Service today issued final regulations under a law change that will require reporting of basis and other information by stock brokers and mutual fund companies for most stock purchased in 2011 and all stock purchased in 2012 and later years. The reporting will be to investors and the IRS. This additional reporting will be optional for stock purchased prior to these dates.
“This important reporting change means investors will now receive the information they need to more easily and accurately report their gains and losses,” said IRS Commissioner Doug Shulman. “We will continue to work closely with stakeholder groups to ensure a smooth implementation of the new requirement, which reduces the recordkeeping and paperwork burden for millions of taxpayers.”
These regulations, posted today in the Federal Register, implement a provision in the Energy Improvement and Extension Act of 2008. Among other things, the regulations describe who is subject to this reporting requirement, which transactions are reportable and what information needs to be reported. Besides providing numerous examples, they also adopt a number of comments and suggestions received since the proposed regulations were issued last December.
Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, long used to report sales prices, will be expanded in 2011 to include the cost or other basis of stock and mutual fund shares sold or exchanged during the year. Stock brokers and mutual fund companies will use this form to make these expanded year-end reports. The expanded form will also be used to report whether gain or loss realized on these transactions is long-term (held more than one year) or short-term (held one year or less), a key factor affecting the tax treatment of gain or loss. The expanded form, to be first used for calendar-year 2011 sales, must be filed with the IRS and furnished to investors in early 2012.
The IRS today also announced penalty relief for brokers and custodians for reporting certain transfers of stock in 2011.
The relief is described in Notice 2010-67, which was posted today on IRS.gov.
Related Articles
- Special investment taxes: mutual fund capital gains and ‘Flash Crash’ earnings (dontmesswithtaxes.typepad.com)
- Waiting…For Your Tax Forms? (turbotax.intuit.com)
- 5 Things You Don’t Know About 529 Plans (money.usnews.com)
- Cost Basis: Tracking Your Tax Basis (turbotax.intuit.com)
- What are all those W-2s and 1099s and 1098s? (turbotax.intuit.com)
- A Tax Cut Everyone Can Agree on (fool.com)
- Fund investors continue to favor bonds over stocks (seattletimes.nwsource.com)
- DTCC Enhances Mutual Fund Profile Service To Improve Integrity of Data for the Fund Industry (eon.businesswire.com)
- What is the Best Roth IRA Broker? (bargaineering.com)
- When Your Investment Losses Really Arenât (at Least in the Eyes of the IRS) (turbotax.intuit.com)
- IRS Won’t Defer Your “Flash Crash” Gains (blogs.forbes.com)
- 5 Things Your Broker Won’t Tell You (money.usnews.com)
Problems with PTIN Online System? Don’t Wait to Register
Image via Wikipedia
By Stacie Clifford Kitts, CPA
Tax preparers heads up, according to the new IRS rules, you have until January 1, 2011 to register for your PTIN (preparers tax identification number). I’m getting a little concerned about the IRS’s ability to GET IT DONE by the January 1, 2011 due date.
Robert Flach of the Wondering Tax Pro, describes his frustration with trying to register on line in his post WHAT A MUCKING FESS!
Before I could submit the PTIN application I first had to create an “account”. I completed this process and was “told” that I would receive an email from the IRS with a temporary password for my account.
It never came!
Two hours later I went online to try again, stating that I needed help with my password when “logging in”. After properly answering the security question I had established in my initial try I was again “told” that I would receive an email with a new password.
It never came!
I gave up for the day.
Ultimately Robert decided to mail in a Form W-12 IRS Paid Preparer Tax Identification Number (PTIN) Application, the alternative to applying on line. If you choose this option beware, the IRS indicates that it could take 4 to 6 weeks to process. The IRS has also posted the following warning on their site:
**The PTIN sign-up system and toll-free number are experiencing high volumes of users. We appreciate your patience and encourage you to try again later if you encounter delays.**
Good luck preparers, and my advice, don’t wait to GET IT DONE!
Stacie's Tax Tips and Other Stuff 