Eliza Martin, BRC Paraprofessional, shares a favorite quote about taking action: There's no shortage of remarkable ideas, what's missing is the will to execute them. - Seth Godin
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| Tax Outlook for the Year Ahead |
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 What Can We Expect From Washington in 2015?
By Ron Kuyath, CPA, Principal
With 2015 underway, we once again find ourselves pondering if this will be the year for the significant tax reform measures commonly seen as needed, but with vastly different ideas on how to get there. Although some changes are anticipated in 2015, it appears that only small steps will be taken from a business perspective and even less in regard to individual taxes.
In some respects, the stage has been set for reform:(Read more.)
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| Tax Talk - Planning Tips From Your Advisors |
 Employing Unconventional Methods to Increase Advertising
Advertising incentives offered to customers are fully deductible as a component cost of goods sold according to IRS lawyers. A media company included tickets in an entertainment and sports events advertising package to their clients who purchased advertising from them. They charged one price for the combined package of tickets and advertising.
Although the IRS agent auditing the company said only 50% of the cost could be deducted, as typical with meals and entertainment expenses, the IRS disagreed. Are you thinking about doing something a little unconventional yourself? Involving your tax advisor early in business planning can be helpful in generating more ideas and saving time and money while ensuring you remain compliant. |
When Named Executor of An Estate, Choose Your Attorney Wisely
By Amanda Patty, JD, CPA, CVA
As executor of an estate, hiring an attorney to file the estate's Form 706 does not absolve you from the responsibility of filing the return on time. In a case where an estate won a malpractice suit against their attorney for not having filed their return or an extension on time, they found they were still liable for late filing and late payment penalties. The court ruled that the executor is ultimately responsible for ensuring that the form is filed and, therefore, responsible for both of the penalties (Specht, D. C., Ohio). If you need help determining important criteria for selecting a good estate attorney, we can help. |
Helping Out With the Mortgage? There May Be a Tax Benefit Available to You.
By Tim Hooks, CPA, Senior Manager
If you find yourself in the position of helping a family member or friend with a home in which there is an understanding you will later be a part-owner, you may be able to deduct some of your contribution. In a recent case where a son was helping his mother out in this way, he was able to deduct the mortgage interest he had paid because he was an equitable owner of the property, even though he had no liability for the loan. (Phan, TC Summ. Op. 2015-1) If you are currently in or contemplating a similar situation and wonder how you can make the most of it, we would be glad to explore how this or other similar potential deductions relate to you. |
 The Net for Who Qualifies for Fully Deducting Rental Losses Can Be Wider Than You May ThinkBy Greta Meads, CPA, Manager
In a recent case, the Tax Court deemed a disabled veteran owning an apartment house met the tax code definition of a "real estate professional", allowing him to fully deduct rental losses. Even though he was unemployed and testified that he spent 750 hours or more on landlord responsibilities with no other form of employment, the IRS claimed he recorded more time than they felt was appropriate for repairs, clean up and interactions with tenants. However, the Court contended that his age and liabilities resulted in it taking longer than most to do the tasks, ruling in the owner's favor. (Lewis, TC Summ. Op. 2014-112) If you have questions about the deductibility of your rental losses, let's talk about your individual situation. |
| Family & Friends - Business Asset or Liability? |
Five Questions to Ask Before Becoming Business Partners with Family and Friends
by Seldon Patty, JD,CPA, CVA, Consultant
Many strong companies have been built around a team of trusted friends and/or family members. However, there are just as many instances in which these very relationships resulted in a story with a less than positive outcome. Before you go into business with family or friends, consider the following: (Read more.)
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Tax Calendar for Businesses & Self Employed - February 2015
Mo 2 File Form 720 for the fourth quarter of 2014.
Mo 2 Furnish Forms 1098, 1099 and W-2G to recipients for certain payments during 2014. Furnish Form W-2 to employees who worked for you during 2014.
Mo 2 File Form 730 and pay the tax on wagers accepted during Dec 2014.
Mo 2 Deposit any FUTA tax owed through Dec 2014.
Mo 2 File Form 2290 and pay the tax for vehicles first used in Dec 2014.
Mo 2 File Forms 940, 941, 943, 944 and/or 945 if you did not deposit all taxes when due.
Mo 2 File your tax return if you did not pay your last installment of estimated tax by January 15th
We 4 Deposit payroll tax for payments on Jan 28-30 if the semiweekly deposit rule applies.
Fr 6 Deposit payroll tax for payments on Jan 31-Feb 3 if the semiweekly deposit rule applies.
Tu 10 Employers: Employees are required to report to you tips of $20 or more earned during Jan.
Tu 10 File Forms 940, 941, 943, 944 and/or 945 if you timely deposited all required payments.
We 11 Deposit payroll tax for payments on Feb 4-6 if the semiweekly deposit rule applies.
Fr 13 Deposit payroll tax for payments on Feb 7-10 if the semiweekly deposit rule applies.
Tu 17 File a new Form W-4 if you claimed exemption from income tax withholding in 2014.
Tu 17 Furnish Forms 1099-B, 1099-S and certain Forms 1099-MISC to recipients.
Tu 17 Deposit payroll tax for Jan if the monthly deposit rule applies.
We 18 Begin withholding on employees who claimed exemption from withholding in 2014 but did not file a W-4 to continue withholding exemption in 2015.
Th 19 Deposit payroll tax for payments on Feb 11-13 if the semiweekly deposit rule applies.
Fr 20 Deposit payroll tax for payments on Feb 14-17 if the semiweekly deposit rule applies.
We 25 Deposit payroll tax for payments on Feb 18-20 if the semiweekly deposit rule applies.
Fr 27 Deposit payroll tax for payments on Feb 21-24 if the semiweekly deposit rule applies.
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