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

IRS adjusts Health Savings Accounts limits for inflation in 2020

In Rev Proc 2019-25, the IRS recently announced the inflation adjustments that will apply to the deductions on contributions to a Health Savings Account (HSA) for 2020. This Rev. Proc. adjusts the amounts set forth in Internal Revenue Code §233. §233 allows eligible individuals who participate in a High Deductible Health Plan (HDHP) to deduct …

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While waiting on Arizona conformity I could have birthed an orca

Do you know that there is a stretch of freeway in Tempe that is slated to have an additional lane added in each of the north and the south bound directions? And this construction is expected to take 16 months. That seems like a long while – right? And it may be slightly annoying for …

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Jury duty: crime & taxes

Each day as you retrieve your mail from the mail box, you sort through the pile of letters noting which items are important and which are not. There is one letter in particular that most people dread opening. That letter is the Jury Duty Summons. As a resident of Arizona, more specifically Maricopa County, we …

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IRS installment agreements: how to pay your taxes

Have you been faced with a large tax bill and do not have the funds to pay the entire balance? Do you have prior tax returns that have not been filed and there are outstanding balances calculated by the IRS? There is a solution to this dilemma. The important thing to remember is that the …

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Estimated tax payments and you

Should you be making estimated tax payments? Estimated tax payments are made to pay tax on income that is not subject to withholding, such as earnings from self-employment, interest, dividends, rents and alimony. Basically, you’re paying 25% of your total estimated annual tax due (required annual payment) four times a year: April 15 June 15 …

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Estate planning: don’t forget your IRA

The IRA is often overlooked when clients meet with their attorney for estate planning. This may be because the IRA owners complete the beneficiary designation form themselves and are unaware of potential pitfalls. Often, the value of the IRA alone far exceeds the value of the planned for estate. Failing to have your attorney review …

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Can I claim my parents as dependents?

These days it is not uncommon for people to be looking after or taking care of their parents. However, did you know that you may be able to get a tax credit to offset some of your expenses? Prior to the 2018 tax year, you may have been able to claim your parents as dependents. …

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Charitable contribution through loan forgiveness

Some years ago, we were involved in an IRS examination where the deductibility of a charitable contribution was brought in to question. This contribution was not your standard charitable donation. In this case, the contribution resulted from a taxpayer forgiving a loan to a charitable organization. This threw the IRS agent for a loop. He …

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Schedule C: Doing business in CA as a single member LLC

Something you may need to beware of is the single member LLC (SMLLC) rules of California. Even if you have a net LOSS. Take note that if you are a single member LLC doing business in California, you may happen to fall into a small category of certain filing requirements. As a single member LLC, …

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10 Tips for choosing a tax preparer

Filing your taxes is a big deal. You want a good preparer who knows their stuff, especially since you are ultimately responsible for the information that’s reported to the IRS, even if someone else prepares your return. So, here are 10 tips from the IRS for choosing a tax preparer. Check their qualifications. You can …

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