WARNING – Federal Healthcare Coverage Information May be Incorrect

Last week the Obama administration reported that 800,000 people who signed up for health insurance under the Affordable Care Act received incorrect tax information on the forms they received from the federal exchange and should wait to receive new ones before filing their taxes. It was reported that roughly 95 % of those who received …

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Write Off Your Building Improvements under the Safe Harbor for Small Taxpayers

The IRS issued regulations in 2013 & 2014 trying to bring clarity to the many conflicting rules in the area of capitalization vs expensing of business property. These new regulations are commonly called the “tangible property and repair regulations” or TPR regulations. The new regulations, which apply to tax years beginning in 2014, have many …

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What is a real estate unit of property?

Wondering what is this “unit of property” term you keep hearing? Well, here is your answer. The IRS issued new regulations in 2013 and 2014 trying to bring clarity to the many conflicting rules in the area of capitalization versus expensing of business property. These new regulations are commonly called the “tangible property and repair …

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How to Deduct Recurring Maintenance? The Routine Maintenance Safe Harbor

The Tangible Property and Repair Regulations & guidance issued in 2013 and 2014 has many new provisions including new “safe harbors” and definitions which affect all businesses that have depreciable property or pay for supplies and repairs. One area covered in the regulations is costs related to improving or repairing property and which of these …

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Materials and supplies – IRS guidance on how to deduct

One of the areas included in the new Tangible Property and Repair Regulations released in 2013 and 2014 is guidance from the IRS regarding what are materials and supplies and when a business can deduct them. The new regulations, which apply to tax years beginning in 2014, include: New definitions of materials and supplies Rules …

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Expense Your Property under the De Minimis Safe Harbor

The IRS issued regulations in 2013 & 2014 trying to bring clarity to the many conflicting rules in the area of capitalization vs expensing of business property. These new regulations are commonly called the “tangible property regulations”. The new regulations apply to tax years beginning in 2014 and include new “safe harbors” and definitions which …

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Arizona – To Conform or Not to Conform to Tax Legislation?

One of our annual rites of passage here in Arizona, is the annual question we all ask – Will Arizona conform to the tax legislation that was passed by the federal government this year? Okay, maybe everyone does not ask that – but those who are in the tax compliance business sure do! And many …

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YARR! The IRS is After Me Booty – Is it income?

Growing up we used run around pretending that we were pirates finding buried treasure while sailing the dangerous seas. Nineteen years later as new tax interns, we found that pirates have to pay taxes just like everyone else. The tax code identifies income for tax purposes as income from all sources unless it is specifically …

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Child and Dependent Care Expenses for the Working Parent

Childcare is a challenge for a lot of parents around the country, especially when both parents work. Knowing how to take advantage of the tax provisions for child and dependent care can help at tax time. The Child and Dependent Care Tax Credit (CDCTC) allows a credit for child and dependent care expenses, as long …

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Understanding Your 5071C Letter: Identity Verification

If you’ve received a 5071C letter, the IRS needs more information to verify your identity in order to process your tax return accurately. The IRS will continue processing your tax return once your identity is verified. Follow the identity verification steps below in order to provide the IRS with necessary information. The steps are as …

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