Recently in Tax Court, in the case of Norman v. Commissioner (December 27, 2012), the taxpayer made a clever but ultimately unsuccessful argument to secure an interest rate deduction for debt related to the purchase of his home that was in excess of the maximum $1.1 million of debt on which interest can be deducted. The taxpayer bought the house on about 10 acres of land for $1.8 million. He borrowed the money from a lender. ...
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The American Taxpayer Relief Act of 2012 (2012 Taxpayer Relief Act) provides a one-year extension of the exclusion from income for the forgiveness of debt on a principal residence. The exclusion is applicable to discharges of qualified principal residence indebtedness which occurred on or after January 1, 2007, and before January 1, 2014. During this exclusion period, taxpayers who are entangled in the current subprime mortgage crisis do not have to pay taxes for debt forgiveness on their troubled home ...
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Our Woodland Hills accounting office is well versed in all the new tax updates and changes for 2013. It’s very important that you be aware of these changes so that you can properly plan and prepare for a financially successful year. While we’ve discussed several of these changes on the blog, here are a few more changes to be aware of.
The current tax continues through 2013 and will be reduced over a period of five years ...
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The Senate and House have passed a new federal tax law known as the American Taxpayer Relief Act of 2012 (“New Tax Act”).
But now with the swearing in of new Congress members, it is likely that they will be tackling the federal deficit during 2013. In light of this there will certainly be additional tax law changes in the new year.
Some of the more important provisions of this New Tax Act are listed below.
The New Tax Act ...
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You may be considering accelerating or deferring income or deductions now that we’re here at the end of the year, but if you don’t have the right techniques it can be frustrating since many tax law provisions are deliberately uncertain, particularly this year-end. It is more crucial this year than ever to have increased tax knowledge and understand certain tax techniques. Because the “fiscal cliff” talks are leaving the raising of tax revenues ambiguous, the timing of these techniques in ...
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Standard Mileage Rates Released for 2013
As we near the end of 2012, it is once again time for the IRS to release its tax codes for 2013. There are some promising changes in the area of allowable mileage deduction rates that I thought important to share with you as we approach the end of another year. All individuals who drive for business purposes, either self employed or for a company, will appreciate the newly released changes.
IRS 2013 Standard Mileage ...
Continue Reading →Acquiring Real Estate: Different Ways to Hold Title
When you’re closing on the purchase of a home, the question of how to take title is an important one to answer correctly. As a Woodland Hills accountant and CPA, I regularly advise clients on the different ways of taking title and the financial impact they have. Below, I will outline the different ways to legally acquire real estate, but it’s always important to consult your lawyer or CPA to determine the best ...
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On November 6th, President Obama secured a win to serve out a second presidential term which, for most in the House signals difficult negotiations between Democrats and Republicans over the fate of the Bush-era tax cuts. In the balance hangs nearly $100 billion in automatic spending cuts, and the more than 50 expiring tax extenders, which include the alternative minimum tax (AMT) patch for tens of millions of taxpayers. The President’s re-election ...
Continue Reading →In today’s business environment, when the economy takes on the ups and downs of a roller coaster ride, all individuals, self-employed and business owners should respond by changing their financial goals. The financial approach one takes to reach their goals depends on their particular situation. During difficult times, the only way to achieve positive long-term results is to develop well conceived strategies and goals. Unfortunately, many individuals lack the skills, resources, discipline and time necessary to effectively plan their financial ...
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As a Los Angeles CPA, I often work with entertainers and industry professionals, and tax deductions are a subject that comes up frequently. Although there are many rules regarding tax deductions for self employed professionals, deductions for entertainers and entertainment industry professionals can be particularly difficult to navigate. Few entertainers can manage to toe the fine line between asking for too many deductions and not claiming enough without the help of Certified Public Accountant. Some will attempt ...
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