Although we can’t escape death or taxes, we may be able to minimize the federal income taxes due on our final Form 1040. Filing a tax return after we die (we are then known as the “decedent”) is probably not something most of us think much about. But, a final Form 1040 generally must be [...]
QuickBooks, of course, can't do your taxes for you. But it helps you lay some of the groundwork. We'll look at the program's tax-related reports and its powerful report-filtering options. But first, you'll need to make sure that this output will be accurate. Describe your company accurately Your tax entity setting should have been established [...]
The current federal income tax environment remains favorable through December 31st. Here are some tax planning ideas to consider as we approach year-end. Leverage Standard Deduction by Bunching Deductible Expenditures. Are your 2012 itemized deductions likely to be just under or just over the standard deduction amount? If so, consider bunching expenditures for itemized deduction [...]
The 2010 Healthcare Act included several significant tax changes scheduled to take effect next year. Listed below is information on two provisions that could impact numerous taxpayers. We have also noted what you can do before year-end to minimize the negative impact of these provisions. $2,500 Cap on Healthcare Flexible Spending Account (FSA) Contributions. Before [...]
Employee fringe benefits paid on behalf of a 2% S corporation shareholder are subject to special rules. A 2% shareholder is one who owns more than 2% of the corporation’s outstanding stock on any day of the corporation’s tax year, considering direct and constructive ownership. Under the family stock attribution rules, a person is considered [...]
As we enter the final quarter of 2012, purchasing a new business vehicle may be an effective way to lower your 2012 tax bill. The tax code allows increased first-year depreciation limits for qualifying vehicles purchased and placed in service during 2012. Taxpayers can claim up to an additional $8,000 of first-year depreciation (in addition [...]