Don't Get Tripped Up By a Wash Sale

The health care reform law passed in 2010 included a provision that would require employers of 50 or more full-time employees to provide affordable health insurance to their workers or face steep penalties. That provision was scheduled to take effect January 1, 2014.

The Treasury Department has announced that the effective date of this provision will be postponed for one year. The mandatory employer and insurer reporting requirements and any penalties connected with them will be delayed in order to allow more time for companies to adapt to meet the requirements.

The end of a year and the start of another are always busy times for companies. You're trying to get business off to a good start in the new year, you're trying to close the books on the prior year, and you have to prepare and file 1099 forms by the end of January.

Every trade or business must file 1099 forms for each year that certain payments are made to non-corporate recipients. A Form 1099 is generally not needed for payments to corporate vendors other than attorneys and corporations providing medical and health care services.

The two most common information returns for most small businesses are Forms 1099-INT and 1099-MISC. Interest paid in the course of a trade or business is reported on 1099-INT when the amount paid totals $600 or more to any payee. The 1099-MISC is used to report payments of rents or services of $600 or more in any one year to a payee.

How to Keep Bank Fees Low           

ATM fees - Banks make billions each year on automated teller fees, and they can add up quickly for consumers. For example, two "foreign" withdrawals a week (from a bank that's not your own) could cost you over $300 a year in fees. Generally speaking, you won't be charged for withdrawals from your own bank's ATM, but if you use another bank's automated teller, expect to be charged as much as three dollars per transaction. Fortunately, this is an easy fee to avoid. Some financial institutions belong to networks that have agreed to waive ATM fees for their customers. Find out which banks or credit unions are tied to your network and frequent only those ATMs. Also, instead of making lots of little withdrawals to get your lattes and toothpaste, make less frequent larger withdrawals from your own bank's automated teller. Of course this takes discipline, both up front and after the money's in your wallet. But ask yourself, "Do I really want to pay hundreds of dollars a year in ATM fees just to get my own money?"

Overdraft fees - Banks will charge you if your account doesn't have sufficient funds to cover checks, ATM withdrawals, and electronic payments. These fees can really hurt. For example, a bank might charge $25 for the first bounced check, $30 for the next three incidents, and $35 for checks that bounce thereafter. Some accounts have "courtesy overdraft" or "bounce protection" features, but often these come with a hefty price tag to cover overdrafts. How can you avoid overdraft fees? Reconcile your bank balance with your check register every month. Record checks and online bill payments at the time of each transaction. Review your account balance during the month, either by phone or online. If you're not the world's greatest bookkeeper, keep extra cash as a cushion in your account as your own "overdraft protection."

Overdraft fees, ATM charges, and other fees can be avoided with a little forethought and discipline.  

Married same-sex couples will be treated for federal tax purposes just like opposite-sex couples, according to a recent IRS announcement. Same-sex couples who were married in a jurisdiction, domestic or foreign, that recognized their marriage as legal will be treated as married for federal tax purposes even if they live in a state that does not recognize same-sex marriages as legal.

The rule, known as the "state of celebration" rule, will allow same-sex couples to live anywhere they like, provided they were married where same-sex marriages were legal.

The IRS rule applies to all federal taxes - income, gift, and estate taxes. Areas that will be affected include such things as personal and dependent exemptions, social security benefits and taxes, IRA contributions and other IRA rules, and tax credits.