3.8% Sales Tax on Home Sales – More on ObamaCare


Starting in 2013, the health care bill does impose a 3.8% Medicare tax on high-income taxpayers who exceed a total household net-investment income — a total which could conceivably include some of the proceeds from a home sale. However, while this Medicare tax will be applied to households with an adjusted gross income of $200,000 or more for individuals, or … Read More

IRS to Accept Returns Claiming Education Credits by Mid-February


IR-2013-10, Jan. 28, 2013 WASHINGTON — As preparations continue for the Jan. 30 opening of the 2013 filing season for most taxpayers, the Internal Revenue Service announced today that processing of tax returns claiming education credits will begin by the middle of February. Taxpayers using Form 8863, Education Credits, can begin filing their tax returns after the IRS updates its … Read More

Simplified Home Office Deduction Starting This Year


IRS Announces Simplified Option for Claiming Home Office Deduction Starting This Year; Eligible Home-Based Businesses May Deduct up to $1,500; Saves Taxpayers 1.6 Million Hours A Year IR-2013-5, Jan. 15, 2013 WASHINGTON — The Internal Revenue Service today announced a simplified option that many owners of home-based businesses and some home-based workers may use to figure their deductions for the … Read More

IRS Plans Jan. 30 Tax Season Opening For Tax Year 2012 Form 1040 Filers


IR-2013-2, Jan. 8, 2013 WASHINGTON — Following the January tax law changes made by Congress under the American Taxpayer Relief Act (ATRA), the Internal Revenue Service announced today it plans to open the 2013 filing season and begin processing individual income tax returns on Jan. 30. The IRS will begin accepting tax returns on that date after updating forms and … Read More

“Fiscal cliff” legislation includes huge number of tax provisions


Here are the act’s main tax features: Individual tax rates All the individual marginal tax rates under EGTRRA and JGTRRA are retained (10%, 15%, 25%, 28%, 33%, and 35%). A new top rate of 39.6% is imposed on taxable income over $400,000 for single filers, $425,000 for head-of-household filers, and $450,000 for married taxpayers filing jointly ($225,000 for each married … Read More

“Dirty Dozen” Tax Scams


IRS Commissioner Doug Shulman recently stated “taxpayers should be careful and avoid falling into a trap with the Dirty Dozen. Scam artists will tempt people in-person, on-line and by e-mail with misleading promises about lost refunds and free money. Don’t be fooled by these scams.” The Dirty Dozen are the 12 most prevalent scams detected by the IRS. Taxpayers should … Read More

Maximizing the Deduction for Start-Up Expenses


Individuals starting a new business or acquiring the assets of an existing business often incur start-up expenses, which can be considerable, in the investigation and acquisition phase before actual business operations begin.  Most start-up expenditures can be segregated into two broad categories (a) investigatory expenses and (b) business pre-opening costs. Taxpayers can immediately deduct up to $5,000 of start-up expenses … Read More

4th Quarter 2012 US Federal Estimates


Timing is everything and the IRS has chosen a particularly inauspicious time to close the Atlanta lock boxes used by taxpayers living in Georgia, South Carolina, Alabama, Tennessee, Kentucky, North Carolina, Missouri, New Jersey, and Virginia to mail their federal estimated tax payments. The IRS has recently announced that effective January 1, 2013, the Atlanta lockbox will be closed and … Read More

Bona Fide Residence (BFR) Due Date


If you did not qualify for the Foreign Earned Income Exclusion (www.2555exclusion.com) with the carryover of a prior year BFR (www.bona-fide-residence.com) or a current year Physical Presence Test ‘PPT’ (www.physical-presence-test.com) and were forced to wait through all of 2012 to qualify under the Bona Fide Residence (BFR) test, then your deadline has finally arrived.  That is, if your qualifying period … Read More

Tax Rate Update


For the past several years, year-end tax planning has been a challenge for so many people.  Trying to anticipate whether Congress will act to extend some or all of the Bush tax cuts has been the cause of many a sleepless night for tax advisors.  The HIRE Act had small business in an uproar over the possibility of expanded reporting … Read More