For many things processed at www.USATaxHelp.com, we will need to submit your authorization in the form of a Power of Attorney (POA). If it is an income issue, audit issue, etc we will need one type POA (F2848)… if it is authorization to file payroll tax forms… IRS has another form (F8655) as does State of Florida (DR600)….. […]
Exchange – not Sale to defer tax
SUMMARY OF IRS LINK https://www.irs.gov/uac/like-kind-exchanges-under-irc-code-section-1031 You cannot sell ANYTHING and defer taxes… You can EXCHANGE (qualified intermediary is hired.. you don’t get your hands on the money)… subsequent property is identified within 45 days… and have a total of six months from sale date to purchase like kind property. When the exchange is done, if you […]
Tax Code – How Big
Internal Revenue Code (IRC) was 26,300 pages in 1984. As of April, 2106 it is 74,608 pages… and if ever tried to read it you would know why they call it code! There were approximately 4,430 changes to the tax code from 2001 through 2010, an average of more than one a day, including an estimated 579 […]
Long Term Care Premiums in S Corps
Can you deduct Long Term Care Preimums the same as Health Insurance for the greater than 2% Shareholder. Answer is …. sort of…. The way the math works……. Let’s say LTC is $6,000 Age based LTC for age 61 to 70 is $3,900 Step 1: The S Corp deducts the entire $6k (even if the […]
FBAR (now Fincen 114)
FBAR Foreign Bank Account Report FBAR Penalties. The penalties for failure to file an FBAR are worse than tax penalties. Failing to file an FBAR can carry a civil penalty of $10,000 for each non-willful violation. But if your violation is found to be willful, the penalty is the greater of $100,000 or 50 percent of the amount in […]
SEVEN states have no income tax… one more soon
Tennessee may soon have NO income tax. Now it taxes only interest from notes and bonds and dividends. Recently the new law lowers the tax rate to 5% (from 6%) for 2016 and drops further until the tax is gone at the end of 2021. There are SEVEN states with no income tax: Alaska Florida Nevada […]
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2015 & 2016 Employer Penalty – Small Employers!
In 2014 the Affordable Care Act created some penalties that you might not be aware of for the SMALL EMPLOYER. They were terrible, so terrible that in fact Congress decided to not enforce the penalties for 2014 and in early 2015 said continue what you are doing until June 30, 2015. Earlier this year Rep. Charles […]
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2015 Depreciation FINALLY DECIDED!
Protecting Americans from Tax Hikes Act of 2015 Bonus first-year Depreciation — Qualified property placed in service between 1/01/15 and 12/31/19 is allowed first-year bonus depreciation. The bonus depreciation percentage is 50% for property placed in service between 2015 and 2017, 40% for property placed in service during 2018 and 30% for property placed in service […]
2016 Mileage Deduction
Optional standard mileage rates for business use of a vehicle will go down in 2016, the IRS announced on Thursday (Notice 2016-1). For business use of a car, van, pickup truck, or panel truck, the rate for 2016 will be 54 cents per mile, compared with 57.5 cents in 2015. Taxpayers can use the optional standard mileage rates to […]
2015 SEP
SEP IRA PROVISIONS A. SEPs are written plans that are 100% funded by the employer. Contributions vest immediately. Contributions can vary from year to year and are discretionary. B. Employees must be covered if they have: 1. Reached age 21 or over; 2. New – Earned at least $600 during 2015; and […]