Posted in general

The IRS has announced a simplified method for owners of business based at home to calculate their deductions for business use of the home. This change will apply to the nearly 3.4 million taxpayers who claimed such deductions in 2010.

The new option allows the taxpayer to calculate the deduction at $5 per quare foot up to 300 square feet, for a cap of $1,500. The current method requires taxpayers to fill out a 43-line Form 8829 with complex calculations. The new form is much simpler.

Homeowners using the new option cannot depreciate the part of their home used in the business, but the can claim certain mortgage interest and real estate taxes as itemized deductions. Please note that restrictions on the home office deduction still apply (IRS Newswire).

If you have questions about how this new option will affect, please contact us either by email or phone. Check the "About Our Firm" tab for detailed contact information.

Last Updated by Trae Long on 2013-01-30 08:32:26 AM

(0 Comment(s))

Posted in general

Have you ever wondered how much you actually pay in taxes during the year, including sales taxes, gas taxes, or cell phone taxes? Check out this link to find a calculator to find out. The results may surprise you.

http://www.totaltaxinsights.org/

Last Updated by Trae Long on 2013-01-29 08:14:37 AM

(0 Comment(s))

Posted in general

The IRS has announced that it will open filing in 2013 and begin processing individual tax returns beginning on January 30, 2013. The delay is due to updates to forms and testing necessary under the American Taxpayer Relief Act of 2012 (Journal of Accountancy).

However, some taxpayers will not be able to file until after January 30. Taxpayers who claim residential energy credits or general business credits, or those who depreciate property, will not be able to file until after January 30 (Journal of Accountancy).

What does this mean for you? A completed tax return cannot be filed until January 30, at the earliest. However, we can still prepare your returns and have them ready to file now. If you are ready to bring in your tax information, do not let the filing delay stop you. We are available and ready to help you get started.

Last Updated by Trae Long on 2013-01-30 01:50:36 PM

(0 Comment(s))

Posted in general

• Individual, Estate, and Trust Income Tax Rates: The income tax rates for individuals, estates, and trusts will revert to 15, 28, 31, 36, and 39.6% after 2012 (§1).
• Capital Gains Tax Rates: Noncorporate taxpayers' long-term capital gains tax rates will increase. The minimum rate of 15% will increase to 20% and the zero rate for taxpayers in the 15% or lower tax bracket will increase to 10% (§1(h)).
• Qualified Dividends: Qualified dividends received by noncorporate taxpayers will be taxed at ordinary income rates, not long-term capital gain rates (§1(h)(11)).
• Increased Standard Deduction for Qualified Taxpayers: The increased standard deduction for married taxpayers that is double that allowed for a single taxpayer will expire after 2012. The standard deduction will revert to 167% of the standard deduction for single taxpayers (§63).
• Limit on Itemized Deductions for Higher-Income Individuals: The 3% of adjusted gross income phase-out of itemized deductions, except for medical expenses. casualty losses, investment interest, and gambling losses, will be reinstated (§68).
• Phase out of Personal Exemptions: Personal exemptions will be subject to a 2% reduction for each $2,500 or part of $2,500 of AGI above thresholds (§151(d)(3)).
• Student Loan Interest Deduction: The deduction will not apply to interest payments after the first 60 months of payments, and the deduction will phase out at lower AGI (§221).
• Child Tax Credit: The child tax credit will revert to $500 and the refundable amount will be limited to taxpayers with at least three qualifying children (§24).
• Child and Dependent Care Credit: The Child and dependent care credit will decrease due to decreases in credit percentage, creditable expenses, and income phase-outs (§21).
• 2% Reduction in OASDI: The OASDI reduction from 6.2% to 4.2% will expire after 2012 (H.R.3630).

Last Updated by Trae Long on 2013-01-25 12:42:36 PM

(0 Comment(s))

Posted in general

• Maximum $250 deduction for some expenses of elementary and secondary school teachers (§62(a)(2)(D)).
• Election to take itemized deduction for state and local sales taxes instead of state and local income taxes(§164(b)(5)).
• Deduction for qualified higher education expenses up to $4,000 (§222(e)).
• Higher individual Alternative Minimum Tax Exemptions. Reduced after 2011 to $45,000 for joint returns, $33,750 for single returns, and $22,500 for married filing separately (§55(d)(1)).

Last Updated by Trae Long on 2013-01-25 12:41:46 PM

(0 Comment(s))

Posted in general

1. Fringe Benefits: New data indicate that employers do not report employee use of company vehicles.
2. High-income Taxpayers: The IRS will focus on taxpayers with income of greater than $1 million on the Schedule C.
3. 1099-K Matching: The IRS plans to start Form 1099-K matching.
4. Health Insurance Credit: This credit, available since 2010, will begin to face scrutiny.
5. Foreign Transactions: The IRS will pursue taxpayers who attempt to hide income and assets overseas.
6. Partnerships: Large loss partnerships and other abuses will be examined.
7. S Corporations: There will be an emphasis on discovering losses in excess of basis on shareholder returns.
8. Worker Classification: Many employees are misclassified as independent contractors. (SmallBizTax)

Last Updated by Trae Long on 2013-01-25 12:41:08 PM

(0 Comment(s))

Posted in general

• Effective October 1, 2012, out-of-state sellers are required to collect sales tax from customers in Georgia if a related company in Georgia sells similar products using a similar business name as the seller or if an entity in Georgia delivers, installs, assembles, performs maintenance on the the product, or other similar services on behalf of the seller in Georgia (GA Tax Reform Bill H.B. 386).
• Effective December 31, 2012, out-of-state sellers will be required to collect sales tax from customers in Georgia if the seller made in excess of $50,000 in sales to Georgia customers in the preceding 12 months, whether through the Internet, in person, telemarketing, or otherwise, or if the seller pays a commission to Georgia residents for sales made(GA Tax Reform Bill H.B. 386). This means that purchases from some large Internet retailers will likely begin to carry sales tax beginning at the end of the year.

Last Updated by Trae Long on 2013-01-25 12:40:07 PM

(0 Comment(s))

Posted in general

This is the home of our new blog. Check back often for updates!

Last Updated by Admin on 2013-01-10 02:28:23 PM

(0 Comment(s))