Archive for 'Accounting Advice for Businesses'

1. Taxes depend on the “origin of the claim.” If you get laid off at work and sue seeking wages, you’ll be taxed on wages, and probably some pay on a Form 1099 for emotional distress. But if you sue for damage to your condo by a negligent building contractor, your damages may not be income. you may be able to treat the recovery as a reduction in your purchase price of the condo. The ...

Giving by individuals fell an estimated 3.4 percent, after adjusting for inflation, last year, according to a report by Giving USA. The numbers reflect the first year of the 2017 tax overhaul that expanded the standard deduction, a simpler way of filing taxes, but also excluded millions of taxpayers from claiming a tax break for donating to charity.

Total estimated giving by corporations, foundations, as well as individuals, fell about 1.7 percent, after inflation, to $427.7 billion. Individuals account ...

Although the April filing deadline has passed, scam artists remain hard at work, and the IRS is warning of a spring surge of phishing emails and telephone scams.

The IRS is seeing signs of two new variations of tax-related scams. One involves Social Security numbers related to tax issues and another threatens people with a tax bill from a fictional government agency. Here are some details:

* The SSN hustle. The latest twist includes scammers claiming to be ...

• During Fiscal Year 2018, the IRS collected nearly $3.5 trillion,
processed more than 250 million tax returns and other forms, and
issued almost $464 billion in tax refunds.
• Close to 58 million taxpayers were assisted by calling or visiting
an IRS office.
• The use of IRS website, IRS.gov, continued to grow with almost
608.8 million visits.
• Of the taxpayers who participated in the 2018 Comprehensive
Taxpayer Attitude Survey, 85% said it is not at all acceptable to
cheat on their ...

The sale of investment real estate may result in the recognition of ordinary income, capital gain, depreciation recapture and/or Medicare Surcharge (“Obamacare”) income tax liabilities.Payment of these income tax liabilities reduces the amount of cash available for reinvestment and makes it difficult to invest in larger, more profitable properties. Using and 1031 Exchange, you can defer the payment of your income tax liabilities, keeping 100% of your cash working for you by reinvesting in replacement properties.

Internal Revenue Ruling 2019-11 states that taxpayers who itemize deductions and who paid state and local taxes in excess of the $10,000.00 may not be required to include the entire state and local tax refund in income the following year.

The Internal Revenue Service reported a $4.4 billion decline in total tax refunds as of April 19, 2019, the first tax season under the Tax Cuts and Jobs Act, with the average size of tax refunds down about 2 percent.