Posted by: Michael Hermes, Tax Senior
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10 Simple Things You Can Do Right Now to Reduce Your Taxes
For many, the sting of holiday spending will present itself in the coming weeks by way of credit card bills and department store charges. Spending aside, the few remaining days of the year also present an opportunity to reduce your taxes, whether you are an individual taxpayer or a business owner.
Our tax team has compiled their top ten action steps to ease the burden and possibly lessen the blow of taxes owed come April 15.
Changes to Filing Due Dates for Business Income Tax Returns
The Highway Act is making changes to our familiar due dates for business income tax returns. To recap current due dates, form 1120 (U.S. Corporation Income Tax Return) is initially due two and a half months after the close of the corporation’s tax year and can be extended for a six month period.
Calendar year corporations are, therefore, initially due on March 15th following the end of the calendar year and can be extended through September 15th. Form 1065 (U.S. Return of Partnership Income) is initially due three and a half months after the close of the calendar year with an option for a five month extension. Calendar year partnerships are initially due April 15th with an extension making the due date October 15th.
Read more by Barb Theofilos: When Are Severance Payments Made to FICA?
Rollover of After-Tax Dollars from 401(k) Plans
Posted by: Gary M. Sigman, CPA, MTax, PFS, AEP®
read more…Understanding the New Medicare Taxes
Posted by: Colleen Kaminsky, CPA
read more…Avoid Losing Your Tax Exempt Status
Posted by: DeAnna Alger
read more…Seven Tips About Rental Income and Expenses
Do you rent property to others? If so, you’ll want to read the following seven tips from the IRS about rental income and expenses.
You generally must include in your gross income all amounts you receive as rent. Rental income is any payment you receive for the use of or occupation of property. Expenses of renting property can be deducted from your gross rental income. You generally deduct your rental expenses in the year you pay them. Publication 527, Residential Rental Property, includes information on the expenses you can deduct if you rent property.
You generally must include in your gross income all amounts you receive as rent. Rental income is any payment you receive for the use of or occupation of property. Expenses of renting property can be deducted from your gross rental income. You generally deduct your rental expenses in the year you pay them. Publication 527, Residential Rental Property, includes information on the expenses you can deduct if you rent property.
- When to report income. You generally must report rental income on your tax return in the year that you actually receive it.
- Advance rent. Advance rent is any amount you receive before the period that it covers. Include advance rent in your rental income in the year you receive it, regardless of the period covered.
- Security deposits. Do not include a security deposit in your income when you receive it if you plan to return it to your tenant at the end of the lease. But if you keep part or all of the security deposit during any year because your tenant does not live up to the terms of the lease, include the amount you keep in your income in that year.
- Property or services in lieu of rent. If you receive property or services, instead of money, as rent, include the fair market value of the property or services in your rental income. If the services are provided at an agreed upon or specified price, that price is the fair market value unless there is evidence to the contrary.
- Expenses paid by tenant. If your tenant pays any of your expenses, the payments are rental income. You must include them in your income. You can deduct the expenses if they are deductible rental expenses. See Rental Expenses in Publication 527, for more information.
- Rental expenses. Generally, the expenses of renting your property, such as maintenance, insurance, taxes, and interest, can be deducted from your rental income.
- Personal use of vacation home. If you have any personal use of a vacation home or other dwelling unit that you rent out, you must divide your expenses between rental use and personal use. If your expenses for rental use are more than your rental income, you may not be able to deduct all of the rental expenses.
IRS No Longer Accepting Federal Tax Deposits
The IRS has officially announced starting January 1, 2011 they will no longer accept federal tax deposits using the paper coupon booklets, also known as 8109 coupons. They will require all deposits be made using the EFTPS system which must be done online. Federal tax deposits include payroll tax deposits, corporate income tax deposits and federal excise tax deposits.
If you are still using the paper coupon booklets to make your federal tax deposits, here is a link https://www.eftps.gov/eftps/direct/HelpAboutMain.page that will walk you through the enrollment process for EFTPS online. Overall the process will take about 7-10 business days to complete. After completing this enrollment process you will begin making all your federal tax deposits online at the EFTPS website.
Please contact Joe Ramey at our office to assist you in enrolling in EFTPS and to answer any questions you have about federal tax deposits and whether or not you need to enroll in the EFTPS program.
If you are still using the paper coupon booklets to make your federal tax deposits, here is a link https://www.eftps.gov/eftps/direct/HelpAboutMain.page that will walk you through the enrollment process for EFTPS online. Overall the process will take about 7-10 business days to complete. After completing this enrollment process you will begin making all your federal tax deposits online at the EFTPS website.
Please contact Joe Ramey at our office to assist you in enrolling in EFTPS and to answer any questions you have about federal tax deposits and whether or not you need to enroll in the EFTPS program.
Get Credit for Making Your Home Energy Efficient or Buying Energy-Efficient Products
Taxpayers who made some energy efficient improvements to their home or purchased energy-efficient products last year may qualify for a tax credit this year. The IRS wants you to know about these six energy-related tax credits created or expanded by the American Recovery and Reinvestment Act of 2009.
read more…Six Facts the IRS Wants You to Know about the Alternative Minimum Tax
The Alternative Minimum Tax attempts to ensure that anyone who benefits from certain tax advantages pays at least a minimum amount of tax. The AMT provides an alternative set of rules for calculating your income tax. In general, these rules should determine the minimum amount of tax that someone with your income should be required to pay. If your regular tax falls below this minimum, you have to make up the difference by paying alternative minimum tax.
Here are six facts the Internal Revenue Service wants you to know about the AMT and changes for 2010.
Since 1938, Zinner has counseled individuals and businesses from start-up to succession. At Zinner, we strive to ensure we understand your business and recognize threats that could impact your financial situation.
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