Tag Archives: TAX TIPS

Keep track of summer rental income

Are you thinking of signing up with one of those websites that link travelers to property owners with space to spare? If you plan to offer for rent all or part of your main home, establishing sound recordkeeping procedures from day one is a good idea. In addition to a bookkeeping system to track the income and expenses related to… (more…)

Don’t lose part of your IRA inheritance to penalties

If you inherit an Individual Retirement Account from someone other than your spouse, you may be surprised to learn you have to take distributions. That’s generally the case whether the IRA is a traditional or a Roth account. If you fail to take the distributions as required, you may owe a penalty of as much as 50% of the amount… (more…)

Use the “X” forms to correct your returns

Need to correct errors on a tax return? Forms for amending already-filed returns typically have an “X” in the title, such as Form 1040X. What should you do when you discover an error on an already-filed tax return? In most cases, the answer is: prepare and file a correction or an amended return. Forms for amending already-filed returns typically have… (more…)

Nonprofits: Heed this May deadline

May 16, 2016, is the deadline for filing annual information returns for nonprofit organizations. Missing the due date three years in a row means losing tax-exempt status. The revocation is automatic and has severe consequences, including the possibility of paying income tax. The good news is that filing might be easier than you think. A nonprofit with annual gross receipts… (more…)

Update your W-4 to adjust your withholding

Did you receive a big tax refund or owe the IRS a lot of money for 2015? Then it’s time to update the form that tells your employer how to calculate your federal income tax withholding. That’s Form W-4, Employee’s Withholding Allowance Certificate, and here’s what you need to know. Filing a new Form W-4 with your employer allows you… (more…)

Smart review tactics lead to long-term business success

As a business owner, monitoring operations and dealing with everyday problems no doubt takes up the bulk of your day. But carving out time for a comprehensive review can benefit your business. Here are key areas to consider. Insurance coverage. Automatic renewal may appear to be a time-saver. But you might be missing out on necessary updates and the opportunity… (more…)

Be aware of these four IRA rules

If you have an individual retirement account, you’re aware of how complicated the rules can get. Here are four to remember as you prepare your 2015 federal income tax return. 1. Are you searching for one more tax deduction? It’s not too late to contribute to your IRA and claim a deduction for 2015. Under current tax rules, you can… (more…)

Offset past or future income with a net operating loss

If you reported more business expenses than income on your 2015 tax return, you may have a net operating loss. That means you have the opportunity to apply your loss to past and future tax years to generate a refund or reduce your tax liability. Unless you elected to carry the entire loss to future years, the general rule is… (more…)

Educate your kids about tax filing

According to a recent survey conducted on behalf of a consumer finance information service, nearly 80% of 18-34 year-olds have concerns about filing income tax returns. Of that group, 34% ask families and friends for advice. Do you know a young adult who is anxious about getting this year’s tax return completed correctly? One way you can help ease the… (more…)

Depreciation breaks boost tax deductions

Did you buy equipment or other business assets during 2015? Here are the current rules for maximizing your tax deduction. ‚󏬆Section 179. Under code Section 179, you can expense many types of otherwise depreciable property used in your business. Both new and used assets qualify for Section 179. For 2015, the maximum amount you can expense is $500,000 of the… (more…)