Aug 312015
 
The Kiddie Tax - Part One

The Kiddie Tax – Part One Internal revenue code section 1(g) taxes unearned children’s income as if it belonged to the parents. This is known as the Kiddie tax. This income is taxed at the parents’ tax rates. Generally, the Kiddie tax rules apply to income of any child who is under age 18, turns 18, or is a full-time student who turns 19 – 23 before the end of the year. Generally, children’s income is taxed as follows. The tax on the income of a child who is subject to the “Kiddie tax” rules is the greater of: A. More…

May 182013
 
6 Ways to Make Your 2013 Tax Season Easier

No one likes unplanned tax surprises, especially when you owe. Now is the time to start your tax planning for next year by  looking at these 6 areas: 1. The first thing on your tax planning to-do- list is to make sure you have a qualified tax professional or CPA. If not, this is the time to start shopping for one. Take your time to make an informed decision and once you have selected a qualified tax professional, they can guide you down the tax planning path. a good tax professional can give you tax tips and while you are ultimately responsible More…

Dec 112012
 
Whatever you do, file your taxes!

The IRS, and for that matter any state government, doesn’t care how famous or popular you may be. They only care that you file and pay your fair share of taxes as outlined by law. Unfortunately for Stephen Baldwin, he was recently charged with failing to pay New York state taxes for three years that amounted to roughly $350,000 (click here to read his story). When it comes to the IRS, not filing your tax returns in one of the worse mistakes you can make. It is actually worse than filing yet not paying, which is reflected in the penalties More…

Oct 042012
 
Time Is Running Out To Take Advantage Of 2012 Estate And Gift Tax Planning Opportunities

Time is running out to take advantage of the liberal estate and gift tax exemptions of 2012.  Currently, the exemption amount is $5.12 million for both gift and estate tax purposes.  This exemption is scheduled to sunset on December 31, 2012, after which it will revert to a much harsher $1 million exemption and the estate tax rate will rise from 35% to 55%. Before the end of 2012, a married couple may transfer assets with a value of up to $10.24 million (reduced by any previous taxable gifts) to their children or grandchildren and such transfers to the next More…

Sep 252012
 
Overview Of The 5 Tax Amendments On The 2012 Florida Ballot

Included among the eleven measures which are set to appear on the November 6 ballot are five that will give Florida voters the opportunity to put more tax breaks into the Florida Constitution.    Here is a brief overview of each amendment: Amendment 2 – also known as the Florida Veterans Property Tax Amendment would amend Article VII Section 6 (Homestead exemptions) of the Florida Constitution to expand property tax discounts for disabled veterans.  As written now, the Constitution only provides a deduction if the disabled veteran was a resident of the state at the time of entering the military service.  More…

Sep 202012
 
IRS Treatment Of Forgiven Student Loan Debt Causing Concerns

In the wake of the housing market collapse, many people have become familiar with the concept of cancellation of debt (COD) income.  The basis for COD income is found in IRC § 61(a)(12) which states that gross income includes “income from the discharge of indebtedness.”  Understanding the logic of this provision can be tricky.  When a loan is given, neither the lender nor the borrower have any gain or loss.  The lender has no loss because it expects to be repaid and the borrower has no gain because it expects to have to repay loan.  Thus, at this point, there More…

Sep 172012
 
Transfer Of Business Assets In Florida May Come With State Tax Liability

A recently enacted Florida statute clarifies that the transfer of a Florida business’s assets is considered a sale of the business and that the sale may come with Florida tax liability.  Florida Statute § 213.758 states that when a taxpayer who is liable for taxes with respect to a business transfers either the business, the assets of the business, or the stock of goods of the business, the taxpayer must file a final return and make full payment of taxes within 15 days after the date of the transfer.  The statute goes on to state that a transferee, or a More…

Sep 142012
 
Amazon To Begin Collecting Sales Tax In California, When Will Florida Get Its Due?

Beginning this Saturday, September 15, 2012, online retailer Amazon.com will begin collecting sales tax for orders made in the State of California.  This will mark an end to a long fight between the internet sales giant and one of the largest states in the union. For years, Amazon relied on the 1992 U.S. Supreme Court decision of Quill Corp. v. North Dakota to justify not collecting and paying state sales tax.  In that case, the Quill Corporation sold office equipment and supplies by soliciting business through catalogs and flyers, advertisements in national periodicals, and telephone calls.  Its annual national sales More…

Sep 072012
 
Church May Have Violated IRC By Endorsing Romney For President

St. Raphael Catholic Church of El Paso Texas appears to have violated the IRC by endorsing Mitt Romney in its bulletin.  “I am asking all of you to go to the polls and be united in replacing our present president with a president that will respect the Catholic Church in this country,” the entry in the church’s August 5 bulletin says. “Please pass this on to all of your Catholic friends.” 501(c)(3) organizations are strictly prohibited for engaging in political activity under several provisions of the IRC.  The rules that apply with respect to lobbying activities are set forth in More…

Sep 062012
 
IRS To Offer Relief To Taxpayers Affected By Hurricane Isaac

Following recent disaster declarations for individual assistance issued by the Federal Emergency Management Agency, the IRS has announced that it will extend tax relief to individuals and businesses affected by Hurricane Isaac.  As of now, affected taxpayers in Louisiana and Mississippi will be eligible to receive tax relief. Currently, IRS filing and payment relief applies to the following localities: In Louisiana: Ascension, Jefferson, Lafourche, Livingston, Orleans, Plaquemines, St. Bernard, St. Charles, St. John the Baptist and St. Tammany parishes; In Mississippi: Hancock, Harrison, Jackson and Pearl counties. Other locations may be announced in the coming days based on additional damage More…