Our Most Recent Blog Posts

Canadian Pensions

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U.S. social security benefits paid to a resident of Canada are taxed in Canada as if they were benefits under the Canada Pension Plan, except that 15% of the amount of the benefit is exempt from Canadian tax.
 
According to the IRS, special tax treatment applies to payments received from the Canadian
pension, the Quebec pension plan, and the Old Age Security plan. If the recipient is a resident of the United States, the benefits are taxable only in the United States, treated as US social security benefits for US tax purposes
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1099's - can we just do them?

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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).....

BUT, for 1099's to IRS, our firm can process if.........

Transmitters, paying agents, etc.  A transmitter, service bureau, paying agent, or disbursing agent (hereafter referred to as “agent”) may sign Form 1096 on behalf of any person required to file (hereafter referred to as “payer”) if the conditions in 1 and 2 below are met.

  1. The      agent has the authority to sign the form under an agency agreement (oral,      written, or implied) that is valid under state law and

  2. The      agent signs the form and adds the caption “For: (Name of payer).”

http://www.irs.gov/instructions/i1099gi/ar02.html#d0e507

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Exchange - not Sale to defer tax

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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 received boot (money, cars, debt forgiveness in excess of debt assumed), then you are taxed on a part of the boot.

The old rules of selling a primary and reinvesting the proceeds in a home of equal or greater value are gone.

AND, it did not apply to a vacation home anyway, only a primary.

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2015 & 2016 Employer Penalty - Small Employers!

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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 Boustany introduced legislation in the House (H.R. 2911) and Sen. Charles Grassley, in the Senate (S.1697) to remedy the problem. BUT it didn’t happen!

Congress just this week decided on extending some items that expire each year the best known of which regards deprecation. Congress did NOT extend the no penalty issue…..

If you have more than one W2 but less than 50… AND you paid for individual employee health insurance (not a group plan AND this insurance was NOT purchased on the exchange (marketplace)), there is a $100 per day penalty per employee. This is serious, that is $36,500 per employee per year!

This penalty applies whether you pay the individual health insurance directly to the insurance company or reimburse the employee.

This excludes greater than 2% S Corporate shareholders… at least for 2015. We are unclear as to 2016 for greater than 2% shareholders of S Corporations.

It does not matter if the insurance meets the minimum essential requirements of the Affordable Care Act. If it was NOT purchased on the exchange, the penalty applies.

We have no guidance on how this will be enforced.

Many employers have stopped paying for individual health insurance because of this penalty. With their savings they have increased the wages of the employee. You cannot designate it has being for health insurance, it is just a raise.

If this applies to you, please call us to help with the calculations. There is still time between now and the end of the year. Not much time.

Thank you,

Lonnie Young      

LYoung@USATaxHelp.com   Tel 407.936.2500 x107 Fax 407.936.2501

Young & Company, LLC   www.USATaxHelp.com  www.IRSTaxTalk.com

Securities offered through HD Vest Investment ServicesSM, Member: SIPC
6333 North State Highway 161, Fourth Floor, Irving, Texas 75038 (972) 870-6000

Efficiency & Experience Make Life Less Taxing

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2015 Depreciation FINALLY DECIDED!

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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 during 2019. In addition, the first-year passenger automobile limits have increased by $8,000 for 2014 through 2017, $6,400 for 2018 and $4,800 for 2019.

Section 179 — The maximum amount of section 179 allowed has increased from $25,000 to $500,000, for 2015 and later tax years. Of the $500,000, up to $250,000 for the 2015 tax year can be expensed for qualified real property. In addition, the $200,000 investment limitation has been increased to $2,000,000.

Qualified real property for section 179

—Qualified real property (qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property) placed in service in a 2015 tax year is eligible for section 179 expensing. The maximum amount of section 179 expense allowed for qualified real property is $250,000.

Leasehold Improvements, Retail Improvements and Restaurant Building Improvements — Leasehold Improvements, Retail Improvements and Restaurant Building Improvements can permanently use the 15-year recovery period.


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