It’s not uncommon for adult children to help support their aging parents. If you’re in this position, you might qualify for the adult-dependent exemption. It allows eligible taxpayers to deduct up to $4,050 for each adult dependent claimed on their 2016 tax return. Basic qualifications For you to qualify for the adult-dependent exemption, in most […]
Tangible Property Safe Harbors Help Maximize Deductions
If last year your business made repairs to tangible property, such as buildings, machinery, equipment or vehicles, you may be eligible for a valuable deduction on your 2016 income tax return. But you must make sure they were truly “repairs,” and not actually “improvements.” Why? Costs incurred to improve tangible property must be depreciated over […]
Do You Need To File A Gift Tax Return?
Last year you may have made significant gifts to your children, grandchildren or other heirs as part of your estate planning strategy. Or perhaps you just wanted to provide loved ones with some helpful financial support. Regardless of the reason for making a gift, it’s important to know under what circumstances you’re required to file […]
The “Manufacturers’ Deduction” Isn’t Just For Manufacturers
The Section 199 deduction is intended to encourage domestic manufacturing. In fact, it’s often referred to as the “manufacturers’ deduction.” But this potentially valuable tax break can be used by many other types of businesses besides manufacturing companies. Sec. 199 deduction 101 The Sec. 199 deduction, also called the “domestic production activities deduction,” is 9% […]
Taxability of Social Security Benefits
For those of you who have asked about the federal tax treatment of social security benefits, here’s some interesting information. The Adjusted Base Amount The portion of social security benefits that you must include in gross income depends on whether your modified adjusted gross income (MAGI), as described below, increased by one-half of the social […]
Crowdfunding Tax Issues
According to crowdexpert.com, an estimated $34 billion was raised by crowdfunding in 2015. This number is expected to have increased in 2016. Crowdfunding is a way to raise money from a large group of people and is most often done online. Common crowdfunding websites such as Kickstarter or GoFundMe allow for people all around the […]
Fraudulent IRS Telephone Calls
As tax season approaches we wanted to remind taxpayers to be aware of potential scams involving fake IRS telephone calls. A common scam is someone impersonating the IRS and demanding payment for a tax bill. Here is a list of ways to determine if you are dealing with a scammer. The IRS will never: Make […]
Tax Planning Considerations for Individuals
As 2016 draws to a close, there is still time to reduce your 2016 tax bill and plan ahead for 2017. We’ve compiled a list of tax-saving opportunities and wanted to share them with you now. The full article can be viewed here – 2016 Tax Planning Considerations for Individuals. Here are some highlights: Annual […]
2017 Social Security Administration Update
In October, the Social Security Administration announced several important Social Security updates for 2017. The updates impact both people collecting Social Security benefits as well as those currently paying Social Security and Medicare taxes. These updates take effect January 1st, 2017. Below are a few of the key updates. Cost-of-Living Adjustment – The Cost-of-Living Adjustment […]