Back on July 31, President Obama signed new legislation that adds a more logical flow to the tax filing deadlines.
Author Archives: Jorge Guerrero CPA
In light of all of the data breaches that are in the news, it’s no wonder that identity theft is on the rise.
Every time we turn on the news lately or pick up a newspaper we hear of another company being hacked and private customer information being compromised.
Have you ever filed your taxes only to find that you do not only owe taxes to the government but are being assessed interest and penalties as well? Taxpayers may incur interest and penalties if they fail to make estimated payments or withhold enough tax to cover their liability for the tax year.
Setting up an investment account for your children when they are very young is a great way to start saving for them but there may be unexpected tax consequences to consider. The Kiddie Tax applies to all children up to age 18 and students 19 to 23 who do not provide more than 50% of their own support. Under Kiddie Tax rules, a child’s investment income, such as dividends, interest, and capital gains in excess of $2,000 is taxed at the parents’ highest marginal rate.
“Place of residency” and “place of domicile” may appear to mean the same thing, but may have different definitions at tax time. The definitions are similar if you have lived in the same place for many years, but if you recently moved to or maintain a second home in a different state, the two terms may be very different.
Effective 1/1/2014, the State of Delaware lowered the Gross Receipts Tax for many business categories. Although the gross receipts tax has been lowered, the $100,000 exclusion did not change and still applies. Along with the $100,000 exclusion not being changed, the annual licensing fees remain unchanged. Gross Receipts Tax Change With the change in Gross Receipts Tax for Delaware, some … Continued
In 2013, the Internal Revenue Service (IRS) provided an alternate way to calculate the Home Office Deduction called the Optional Safe Harbor Method in Rev. Proc. 2013-13. This simplified method is ideal for those who do not have adequate records of home expenses, do not wish to depreciate their home, or are renters. Under this method the “qualified business use … Continued