Kiddie Tax

The “Kiddie Tax” was enacted in 1986 and was intended to close a tax loophole that allowed a small number of wealthy parents to reduce their tax bill by shifting income-producing assets to their young children in lower a tax bracket. Originally the law provided that, for any child who was under the age of …

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New AZ Law Establishes Tax Recovery Program in 2015

Do you owe money to the State of Arizona? If you do, you can minimize that amount by taking advantage of a new tax recovery program! On March 12, 2015 the State of Arizona passed Senate Bill 1471 to establish a tax recovery program for the Arizona Department of Revenue. The program will begin September …

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The benefits of cost segregation studies

Have you recently purchased a building? Have you done any build-out work on an existing building? Have you recently remodeled? Are your leasehold improvements properly classified for tax purposes? Are you looking to enhance your cash flow? If you answered yes to any of these questions, then you may benefit from having a cost segregation …

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Minnesota CPAs’ List of Outrageous Tax Deductions

For some reason CPAs are not known for a great sense of humor. So it’s refreshing to see the Minnesota Society of Certified Public Accountants (MNCPA) release an annual list of the most outrageous tax deductions clients tried to take on their tax returns. “Creativity is rewarded in many parts of society, but not by …

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Work Opportunity Tax Credit – You May Still Qualify for 2014

If you hire employees of a “targeted group” (defined below), you may be eligible for the Work Opportunity Tax Credit (WOTC). The IRS has granted a transitional relief period until April 30, 2015 (originally this was 28 days after hire date), for qualified employees hired January 1, 2014 through December 31, 2014, since the law …

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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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Mid-Year Tax Planning Tips

Summer is the perfect time to begin your year-end tax planning so that you have time to identify the strategy (or strategies) that work for you and implement them well before year end. Try to avoid the new 3.8% net investment income tax (NIIT). It only affects higher-income individuals, but that can include anyone who …

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Understating Income on Your Tax Return – Are You an Innocent Spouse?

When we are providing consulting services relating to a divorce, we are often asked to perform a business valuation and/or make a determination of income of one or both of the spouses for support purposes.   During the course of our work we will review and utilize the joint income tax returns of the parties.  It …

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