Hispanic couple managing finances

Social Security Benefit Loophole Ended

Cross References • Public Law 114-74, Subtitle C, Section 831 The Bipartisan Budget Act of 2015, signed into law on November 2, 2015, contains a provision that closes a loophole in the rules for collecting Social Security benefits. The provision has to do with the so called “file and suspend” strategy. Section 831 of the […]

tax-scams

Tax Scams – How to Protect Yourself

There are many tax scams out there with the purpose of stealing your identity, stealing your money, or filing fraudulent tax returns using your private information. Tax scammers work year-round, not just during tax season and target virtually everyone. Stay alert to the ways criminals pose as the IRS to trick you out of your […]

IRS Cash Payment

IRS Offers New Cash Payment Option

Cross References • IR-2016-56, April 6, 2016 The Internal Revenue Service has announced a new payment option for individual taxpayers who need to pay their taxes with cash. In partnership with ACI Worldwide’s OfficialPayments.com and the PayNearMe Company, individuals can now make a payment without the need of a bank account or credit card at […]

IRS Due Date Changes

Changes in Tax Year 2016 filing dates

Dear Clients, The IRS has changed some of the filing deadlines for tax returns and informational documents, effective with your 2016 returns. This means that you may need to plan to get us your information quite a bit sooner than before in order to file your 2016 return timely. Please note that pending legislation for […]

IRS Horse Racing

Horse Racing Activity Not a Hobby

Cross References • Roberts, 7th Circuit Court of Appeals, April 15, 2016 • T.C. Memo. 2014-74 • IRC §183 The Tax Court ruled a taxpayer was not engaged in a race horse activity for profit and therefore disallowed losses used to offset other income. The 7th Circuit Court of Appeals recently reversed that ruling. The taxpayer […]

Employee Vehicles

Employer-Provided Vehicles

Cross References [Notice 2016-12] If an employer provides an employee with a company-owned vehicle, and the employee uses the vehicle for personal purposes, then the value of that personal use must be included as taxable income on the employee’s Form W-2. Under the general rule, the taxable amount equals the FMV of the total use, minus the amount the employee […]

Horses For Profit

Horse Breeding Was a Hobby, Not a Business

Cross References: Stuller, 7th Circuit Court of Appeals, January 26, 2016 The taxpayers lived in Illinois and owned several profitable restaurants. They also owned and bred horses on a farm in Tennessee. They hired an experienced horse trainer to train their horses and manage the farm. Under an agreement between the trainer and the taxpayers, the horse trainer […]

Employee Vehicles

Tax Guidelines to Vehicles for Business Use

Vehicles — Business Use Under certain circumstances a taxpayer can claim a deduction for using their vehicle for business purposes. If you use your car for business purposes, you ordinarily can deduct car expenses using either the standard mileage rate or actual expenses. Use of a vehicle qualifies as business use under all of the following. Getting from […]

Five Questions and Answers about New Social Security Claiming Rules

When Congress unexpectedly eliminated two Social Security claiming strategies as part of the Bipartisan Budget Act of 2015, retirement planning got a little more complicated for people who expected to use those strategies to boost their retirement income. Here are some questions and answers that could help if you are wondering how the new rules might affect you. […]

Why Is Tax Planning Important For Your Future?

Whether you are single or married, a parent or grandparent, you always need to look ahead to the future. Part of doing that means planning out your financial future and trying to save as much money as possible. That means paying as little as possible to Uncle Sam each year. So why is tax planning […]