Financial Planning Checklist
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Time to Start Organizing Your Deductions
A deduction is an expenditure that will reduce your taxable income. There are two kinds of deductions: adjustments to income and itemized deductions. The adjustments to income are the better of the two, as they reduce adjusted gross income, or “AGI.” Itemized deductions reduce your taxable income. First, we will look at some adjustments to income. Educator expenses apply to K – 12th grade educators, and are limited to $250 of documented supplies per qualified taxpayer. Expenses exceeding $250 can be taken as a miscellaneous itemized deduction. A health savings account is an account set up exclusively for paying the [...]
IRS Begins Accepting Digital Signatures
On Marh 11, the IRS updated Publication 1345, Handbook for Authorized IRS e-File Providers of Individual Income Tax Returns. Prior to this update, the IRS required a 'pen and ink on paper' signature to be considered valid, though it allowed the form to be return to the tax preparer via scan or fax. Now acceptable methods fall into the following categories: A handwritten signature input on an electronic signature pad A handwritten signature, mark or command input on a display screen by means of a stylus device a digitized image of a handwritten signature that is attached to an electronic [...]
Revenue Recognition and the Completed Contract Method
In a recent case, Shea Homes, Inc., 142 TC No# 3, the tax court decided against the IRS' position that Shea Homes should have recognized revenues on each individual home sold using the completed contract method. In a far-reaching decision for master-planned community builders, the tax court agreed with Shea Homes that they should be allowed to defer revenue recognition until the completion of the ENTIRE community, including land improvements and community amenities. New home builders are allowed to recognize revenue on the completed contract method - capitalizing expenses until at least 95% of the total contract costs are incurred [...]
July News & Tax Tips
Aaron and Denise have recently returned from an outstanding continuing education seminar, and there is so much to share! Keep an eye out the "News" section of our website for new posts throughout the month. Also, don't forget to follow us on twitter and facebook! Calendar June 30 - 7 Alan Vacation July 3 - 8 Denise Vacation July 10 - 15 Suzy Vacation July 4 Independence Day (Federal holiday) July 31 Payroll Tax Returns Due Future Filing Deadlines Though business taxpayers have until September 15 and individual taxpayers on extension have until [...]
Recordkeeping & Jon Stewart on the Internal Revenue Service
Jon Stewart, king of all snark, recently took on the IRS in this June 24 segment. Stewart skewered the IRS for shoddy record keeping policies (6 months for e-mails?) and storage processes. In addition, House Oversight and Government Reform Committee Rep. Darrel Issa was not immune to criticism for his behavior during IRS Commissioner Koskinen's testimony. The Daily Show Get More: Daily Show Full Episodes,The Daily Show on Facebook,Daily Show Video Archive The Blau Company, Ltd. recommends that you retain documents using the following guidelines: Tax Returns - Permanent Tax Return Source Docs (W-2s, 1099s, etc) - 7 Years Bank/Credit [...]
IRS Video on the ‘Dirty Dozen’ Tax Scams to Watch For
Every year the IRS releases it's "Dirty Dozen" list of tax scams. The purpose is to educate taxpayers of scams which harm thousands of taxpayers each year. These scams can bilk taxpayers of tax refunds, stolen money from bank accounts, or other identity related theft. Here are some examples: Pervasive Telephone Scams - Fake IRS agents who threaten taxpayers into paying fake taxes or penalties Phishing - unsolicited e-mails which look official but direct taxpayers to non-IRS pages in an effort to steal personal information. The IRS WILL NEVER contact you via e-mail. Free Money from Inflated Refunds - [...]
Mid-Year Tax Planning
Tax Season 2014 has come and gone and now it's time to think about tax planning for tax year 2014. Items which could impact your 2014 taxes include certain life events and expired tax provisions. Certain Life Events Have you recently had a birth, adoption or death in your family? Have you gotten married, divorced, retired, or changed jobs this year? If any of these life events occur in 2014, we need to discuss the potential impact on your 2014 taxes. For example: 1) For Qualifying Children under the age of 17, a tax credit up to $1,000 per qualifying child may be [...]
June News & Tax Tips!
Welcome to summer! After a brief respite, the staff of The Blau Company, Ltd. is back full speed ahead! Here is some staff news, and tax tips and tricks for your benefit! […]
Ask The Expert!
88% of our surveyed clients believe our newsletter and blog provides timely and relevant information. That isn't high enough! We want to know what YOU want to know! Do you have a nagging tax question? Did you think of a question, but forget to ask it during your client interview? Post your question in the 'comments' section, and it may be the subject of our next blog post! You can remain anonymous, or can even request that your question stay confidential, so feel free to let us know what your aunt's dressmaker's sister's ex-roomate who lives in Hoboken once said [...]