Are Holiday Gifts Taxable?
We hate to be a Scrooge, but have you ever considered the potential tax implications of your holiday gift giving? During the holiday season many employees can expect to receive something extra from their employer, whether by way of a cash bonus, a non-monetary gift or even an annual holiday party. And, […]
Avoid Nanny Tax Nightmares
Don’t let the IRS catch you paying your household helper under the table. It’s estimated that 75% to 95% of people who employ nannies, sitters, housekeepers, and home health aides don’t bother paying employment taxes. While many people inadvertently (or “unknowingly”) ignore the rules and pay their home helpers under the table, […]
The Pros and Cons of Internal Auditors
The role of the internal auditor is changing. As the risks for companies change in this ever-evolving economy, Board Members are now seeking assurance on concerns beyond just the traditional financial risks. Areas such as cyber security, regulation and corporate culture are now more top of mind for companies […]
Tax Credit For Foreign Adoptions
If your family is interested in claiming the adoption tax credit for a foreign adoption, you need to keep in mind that there are special timing rules that apply for foreign adoptions. These rules differ from the timing rules for domestic adoptions and impact when you may claim qualified adoption expenses.
The […]
Partnerships vs Other Business Relationships
Picking the right type of structural organization for your business can have important tax consequences, so it’s important to take a close look at partnerships and the other types of business relationships.
A partnership is created when persons join together with the intent to conduct unincorporated venture and share profits. Intent is […]
Child Related Deductions and Tax Credits
We all love kids, but we know they can also be really expensive. As a general rule, personal expenditures are not deductible. However, there are several deductions and credits that help defray some of the costs associated with raising children, including some costs related to education. Some of the most […]
Independent Contractor or Employee?
The IRS remains focused on the misclassification of workers as independent contractors rather than employees. The IRS issued yet another fact sheet “reminding” employers about the importance of correctly classifying workers for purposes of federal employment taxes. Generally, employers must withhold income taxes, withhold and pay social security and Medicare taxes, and […]
Timing Stock Sales for Tax Advantage
A recent Tax Court decision has highlighted how stock sales can be timed for maximum tax advantage. The taxpayer in the case failed to convince the Tax Court that he timely made an election with his broker to use the last-in-first-out (LIFO) method to set his cost-per-share cost basis for […]
Best Ways to Deduct Student Loan Interest
An eligible taxpayer can deduct qualified interest on a qualified student loan for an eligible student’s qualified educational expenses at an eligible institution. The amount of the deduction is limited, and it is phased out for taxpayers whose modified adjusted gross income (AGI) exceeds certain thresholds.
The maximum deduction allowed […]
Updated 401K Hardship Guidelines
The IRS Tax Exempt and Government Entities Division has updated their guidelines to determine whether a 401K plan hardship meets the safe-harbor standards set forth in applicable regulations. Specifically, they have set out the substantiation guidelines that IRS auditors are to use in conducting related examinations.
Under Code Sec. 401(k), plans may provide […]