Our Accounting Articles
Facing an Unexpected Bill for the Additional 0.9% Medicare Tax?
April 21, 2015
The additional 0.9% Medicare tax applies to FICA wages and self-employment income exceeding $200,000 per year ($250,000 for married filing jointly and $125,000 for married filing separately). Unfortunately, the withholding rules have been tripping up some taxpayers, read more…
True or False: A Net Operating Loss is Bad News On Your 2014 Tax Return? False
April 14, 2015
When a company’s deductible expenses exceed its income, generally a net operating loss (NOL) occurs (though of course the specific rules are more complex). If when filing your 2014 income tax return you’ve found that your business had an NOL, there is an upside: tax benefits. read more…
Filing a Paper Return? Don’t Forget the “Timely Mailed = Timely Filed” Rule
April 7, 2015
The IRS considers a paper return that’s due April 15 to be timely filed if it’s postmarked by midnight on April 15. But dropping your return in a mailbox on the 15th may not be sufficient.
For example, let’s say read more…
Yes, There’s Still Time to Make a 2014 IRA Contribution!
March 31, 2015
What?! There is still time to make a 2014 IRA Contribution? Fantastic!
The deadline for 2014 IRA contributions is April 15, 2015. The limit for total contributions to all IRAs generally is $5,500 ($6,500 if you were age 50 or older on Dec. 31, 2014).
If you haven’t already maxed out your 2014 limit, consider making one of these types of contributions by April 15: read more…
Do You Need to File a 2014 Gift Tax Return By April 15?
March 24, 2015
Generally, you’ll need to file a gift tax return for 2014 if, during the tax year, you made gifts:
- That exceeded the $14,000-per-recipient gift tax annual exclusion (other than to your U.S. citizen spouse),
- That you wish to split with your spouse to take advantage of your combined $28,000 annual exclusions, or
- Of future interests — such as remainder interests in a trust — regardless of the amount.
If you transferred hard-to-value property, such as artwork or interests in a family-owned business, consider filing a gift tax return even if you’re not required to. Adequate disclosure of the transfer in a return triggers the statute of limitations, generally preventing the IRS from challenging your valuation more than three years after you file.
There may be other instances where you’ll need to file a gift tax return — or where you won’t need to file one even though a gift exceeds your annual exclusion. Contact us for details.
© 2015 Thomson Reuters/Tax & Accounting
Taking Advantage of Tangible Property Safe Harbors
March 17, 2015
If your business has made repairs to tangible property, such as buildings, machinery, equipment and vehicles, you may be eligible for a deduction on your 2014 income tax return. But you must make sure they were truly “repairs,” and not actually “improvements.”
Why? Costs incurred to improve tangible property must be depreciated over a period of years. But costs incurred on incidental repairs and maintenance can be expensed and immediately deducted. Distinguishing between repairs and improvements can be difficult, but a couple of IRS safe harbors can help: read more…