Your Guide to State, Local, Federal, Estate + International Taxation

I have to pay taxes for my household employee?!

Do you have someone that does work around the house for you? Do you know if they are a household employee? If yes, you may be required to report and pay payroll and unemployment taxes. “You have a household employee if you hired someone to do household work and that worker is your employee. The …

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Rental real estate acquisitions: tax implications

I was having a telephone conversation with a friend of mine a couple of weeks ago which nearly always turns into thirty minutes of free tax advice based upon what he has going on in his life. After a few minutes of asking about family, work, and the status of our golf game, this conversation …

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Section 179 deduction – motocross motorhome

How does a motorhome with two beds suitable to accommodate two full grown adults qualify for the Section 179 deduction? Well, according to the IRS, it doesn’t. At least that was the initial verdict passed down to Dave Evans when he tried to claim the motorhome, along with his son’s motocross expenses, on his business …

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International tax blog (DING!) – Round two

I’ve given you all plenty of rest from my last international tax blog, “International tax reporting in a nutshell” (Search nutshell on our website or just click here). So here it is (DING!), round two! Don’t sweat too much, round two is only warning you of two forms, Form 3520 “Annual Return to Report Transactions …

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Book challenge! Reviewing your accounting

I’ve seen it too many times, debits in the liability section and credits in the asset section of company books and no one really knows why. Accountants then have to dig down and dissect what happened (which is fine, just realize, time is money) and then put it back in the right place, some easier …

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Wanted: galactic accountant, tax in space

As they say, there is no escaping death and taxes. And that may apply even in space. All the talk that’s been going on for years regarding space tourism and colonization of the moon and Mars are getting closer to reality. Adam Chodorow, a law professor at Arizona State University, pointed out that “taxes matter, …

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Equifax data breach – how to protect yourself

If you haven’t heard by now, credit reporting agency Equifax has been hacked. According to Equifax, the breach happened from mid-May through July and exposed sensitive personal information of 143 million Americans. Hackers got their hands on people’s names, Social Security numbers, birth dates, addresses and even some driver’s license numbers. They also stole credit …

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Paying taxes – the IRS makes it easy

I think you would agree with me that we like to get paid for the amount that is owed to us. We might receive a check or for many of us it’s a direct deposit. The bottom line is that however we receive it, we expect that if an amount is owed to us, we’ll …

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Estimated payments – don’t forget self-employment tax

A couple of tax seasons ago, I got a call from my dad asking for some help on my sister’s tax return. He was preparing it on do-it-yourself tax software. After he had entered the few items she had, he was perplexed at the summary in the top right corner. It showed her tax bill …

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Estimated tax payments – to pay or not to pay?

Estimated tax payments – to pay or not to pay? This is a good question. It really depends on each person’s financial situation. The general rule is a big fat “YES;” however, there may be really good reasons not to pay, depending on your overall financial plan. The IRS still wants their money; however, penalties …

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