03
Feb
14

EXPIRING TAX PROVISIONS – Many changes

 

Although the American Taxpayer Relief Act (ATRA) reduced uncertainty by permanently extending many of the tax cuts first enacted in 2001 and 2003 (Bush era tax cuts) there are dozens of provisions originally due to expire at the end of 2011 or 2012 that were temporarily extended until the end of 2013. Those which will expire on December 31, 2013 include the following:

    • State and Local Sales tax – Taxpayers can elect to deduct state and local sales taxes in lieu of state and local income taxes.
    • Mortgage insurance premiums – Allowed to be taken as qualifying residence interest payments
    • IRA Distributions to Charity – Tax free distributions, up to a maximum of $100,000 per taxpayer from IRA’s to US public charities by taxpayers aged 70 plus 6 months or older, have been allowed as an alternative to take an itemised deduction.
    • First year expensing of qualifying assets – The $500,000 limit for the immediate expensing of qualifying assets (non-real property-tangible assets purchased during the year) costing no more than $2,000,000 will reduce to $25,000 with phase out starting at $200,000.
    • Deduction for tuition and fees – expires as of December 31, 2013.
See the exhaustive outline of changes here:
08
May
13

Many Early Tax Filers Still Waiting for Refunds

Taxpayers claiming education credits on Form 8863 encountered their first delay when the IRS said it wouldn’t be able to start processing the forms until mid-February because it needed to update its systems. Then, on March 12, the IRS said several tax software providers erroneously filed more than 600,000 returns containing the 8863 form –resulting in delays of up to six weeks from the date they were filed.

That meant most of these filers were expecting refunds by the end of March or beginning of April at the latest.

But since then, hundreds of angry comments have been posted on Facebook and other online tax forums from filers who claim they still haven’t received their refunds.

story

09
Apr
13

NEW: Home Office, Medicare Tax – 2013

Under new IRS rules, taxpayers will be able to use a simple formula based on the size of their home offices. The streamlined method, available for 2013 returns, lets taxpayers deduct $5 per square foot, up to a maximum of 300 square feet, or $1,500.

——–

There is a 0.9% increase in the Medicare tax on wages and self-employment income….S-Corp pass thru may be included.

Taxable fringe benefits—such as personal use of a company car or airplane—are subject to the 0.9% tax for employees.

——-

http://online.wsj.com/article/SB10001424052702303684004577509112641512828.html

05
Feb
13

Taxman plays doctor

“……. The extent to which one is eligible for federal subsidies to buy insurance, and the penalties for failing to comply with the mandate, will both be determined using one number: the adjusted income reported to the Internal Revenue Service this year…..” story

11
Jan
13

Is a Self Directed IRA right for you ?

I recommend you take a look at our SD IRA page on RealtyNetWorth.com.

This can be an excellent way to roll existing retirement funds or use future IRA deposits to make hands on real estate investments. You pick the property and we broker the buy/sell activities. We have many professionals in the referral network to assist if/when needed from setup with a MI based trustee to CPA’s, property inspectors, etc.

If you want to enter the market but don’t have free funds outside of retirement accounts, this may be a good option for many – especially if you are younger/ have a % to set aside for this type of investing/ or are interested in property with a bit of knowledge regarding repairs and care of homes.

11
Jan
13

Mileage Rates for 2013

Beginning on Jan. 1,

the standard mileage rates for the use of a car, vans, pickups or panel trucks will be

  • 56.5 cents per mile for business miles driven,
  • 24 cents per mile driven for medical or moving purposes, and
  • 14 cents per mile driven in service of charitable organizations.
05
Jan
13

Fiscal Cliff notes

  • Mortgage debt relief has been extended for another year. See Sec. 202 of the bill.
  • the Bush tax cuts — which have been temporary since 2001 — permanent for couples’ income below $450,000 and individuals’ income below $400,000. For income above those levels, the Bush tax cuts have expired
  • class monday…..more to come



Follow

Get every new post delivered to your Inbox.

Join 33 other followers