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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Do you own an Arizona Rental House? Get Ready to be Licensed

The Arizona Department of Revenue (ADOR) and Arizona cities are changing the rules for owners of residential rental properties. By 2016, all property owners who meet the licensing requirements will be required to be licensed and to individually file sales tax returns (transaction privilege tax). Licensing requirements for residential rentals are available on the ADOR …

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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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