Special Opportunity for Charitable IRA Rollover Gifts

H.R.8, the “American Taxpayer Relief Act” provides a special opportunity for Charitable IRA Rollover Gifts in 2012 if they are made in January of 2013.  The new tax law which has been signed by the President extends the Charitable IRA Rollover through December 31, 2013. This means that Donors age 70 and ½ or older …

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Income Taxes – A Long Road Traveled

As news comes in this morning of our almost leap over the fiscal cliff, you may ask, “How did we get here and has it always been this complicated?” Well, President Lincoln signed the first revenue-raising measure to help pay Civil War expenses in 1862.  The measure created a Commissioner of Internal Revenue and the nation’s first …

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Inherited IRAs … no 60 day rollover window!

Individual Retirement Accounts (IRAs) have many rules, and the penalties for failing to follow the rules can be painful. The taxpayer Elizabeth Beech found this out the hard way with her inherited IRA. Elizabeth Beech inherited an IRA from her deceased mother. In 2008, Ms. Beech took a $35,348 distribution from the IRA. She took …

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Straight-line expense recognition of leases

Update: The guidance below will be superseded upon the new lease accounting standard becoming effective for most private companies in 2020. For further information on the upcoming changes to lease accounting, click here. Sometimes operating leases aren’t as straightforward as they seem to be and there are a couple of situations that create a deferred …

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There’s A Pocket Guide for That?

While trying to research something both useful and interesting for government clients, I came across a “Pocket Guide for Government Employees” entitled:  “Protecting Federal Tax Information. While the guide was primarily addressing the need for state tax agencies which receive federal tax returns and return information, it reminded me that now many cities, towns and …

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Related party rentals – what’s the big deal?

As long as the tax code has been in place, people have looked for ways to shift income, reduce their liability and increase their cash flow. And, as an owner of a small business, rent expense has been an area that has allowed some creative accounting. However, the IRS has taken notice of this area …

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When are legal settlements taxable?

According to the IRS, “all income is taxable from whatever source derived, unless exempted by another section of the Code” (IRC Section 61). How does that affect monetary awards in legal settlements? Awards and settlements can be broken into two separate groups to determine whether they are taxable or not. The first includes claims relating …

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Quickbooks Online

I have a client that has been using the desktop version of QuickBooks since 2000 and is thinking about making a switch to QuickBooks Online.  They asked me how the online version compares to the desktop version.  The truth was that I had used both versions for what I needed from a tax reporting perspective, …

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What are intangible assets?

By definition, intangible assets consist of items that are not tangible. In other words, these items are not able to be touched or seen even though money may have been paid to purchase them. Some common examples include: Goodwill Patents Copyrights Trademarks Organization Costs Loan Fees Intangible assets can be developed over a period of …

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Key points of the US – Canada Tax Treaty

The U.S. has entered into tax treaties with many countries in an effort to reduce or eliminate double taxation. The U.S. – Canada Income Tax Treaty is of special interest due to the proximity of this neighboring country. This treaty was signed in 1980 and has since been amended by five protocols. Income from personal …

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