Through tax season, our team members have been allowed to wear jeans on Friday in return for a donation of $5 to our Relay for Life teams in Rockford and Grand Rapids. As of today our group has raised $1485.
Be sure to check Facebook for pictures and updates at our Relay for Life events, our first is on Friday May 18th in Rockford.
Many people give gifts throughout the year, but they don’t realize certain gifts are taxable. Make sure you know the rules. (Photo Credit: office.microsoft.com)
Many people give gifts throughout the year, but they don’t realize certain gifts are taxable. On Monday we reviewed keeping your charitable donations organized for next tax season. Today we’ll discuss taxable gifts and what you’ll need to know for next tax season.
What is a Taxable Gift?
What most people don’t realize is that the IRS’ general rule of thumb is ALL gifts are taxable, but there are several exemptions. The primary exemption being, gifts that do not exceed the annual exclusion for the calendar year are not taxable. For 2011 and 2012 the annual exclusion is $13,000. The following items also are not taxable:
Can My Spouse and I Each Make a Gift Up To The Annual Exclusion?
You and your spouse are each able to make a gift up to the annual exclusion without paying the gift tax. So, for 2011 and 2012, you could gift $26,000 to a third party and then each claim half of the amount. You must file Form 709, if you do this.
Takeaway
Most gifts will not be taxable under the IRS’ exclusions, but if you do exceed the limit remember to file Form 709. If you have any questions throughout the year regarding whether a cash or property gift will be taxable, contact your H&S tax professional at 800.924.6891.
Forms + Sources
Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return
If you plan to make charitable contributions throughout the year, you’ll want to be sure to keep your records organized for next tax season. (Photo Credit office.microsoft.com)
Tax season is almost over, but you’ll want to stay organized for next year! If you plan to make charitable contributions throughout the year here are a few tips regarding what you’ll need in order to deduct those contributions:
Which Organizations Qualify?
You may only deduct contributions if they are made to legitimate qualified organizations. Donations to political organizations, candidates, or specific individuals don’t count. IRS Publication 526 can help you determine if an organization qualifies.
How do I Claim a Charitable Contribution?
How you claim your charitable contribution depends upon how much you donated. If noncash contributions exceed $500, then you must complete Form 8283, Noncash Charitable Contributions. If they are below $500 then you complete Form 1040, and itemize donations under Schedule A.
If your donation is valued at $5,000 or more, you must complete Section B of Form 8283.
What if I Received ‘Perks’ Because of My Donation?
If you received any perks in exchange for a donation (ie baseball tickets, merchandise, discounted or free services, etc.) then you may only deduct the amount that exceeds the fair market value of the perk you received.
So, if you donated $50 and, as a result of that donation you received two baseball tickets with a fair market value of $30, you may only deduct $20.
Do I Need to Keep Any Records of My Donations?
Yes! You must keep records of the items you donated. Below are examples of acceptable records:
Remember, keeping track of these items now will help reduce stress next year. If you have any questions, or need any additional information, please contact your H&S tax professional at 800.924.6891.
Forms + Sources
IRS Publication 561, Determining the Value of Donated Property
IRS Publication 526 (2011) Charitable Contributions
Form 8283, Noncash Charitable Contributions
The Department of Treasury is now able to grant an exemption to nonprofits that provide housing for the elderly or disabled for 2012 (Photo Credit office.microsoft.com)
The Department of Treasury is now able to grant an exemption to nonprofits that provide housing for the elderly or disabled for 2012. Additionally, the exemption is available for the three preceding years, assuming the property would have met the requirements for the exemption, had the taxpayer filed by the deadline in 2010.
If you are eligible to take advantage of this exemption, and it results in overpayment of taxes, you will receive a rebate including any interest paid within 30 days of the date the exemption is granted.
If you have any questions or would like further information on this matter, please contact your H&S tax professional at 1.800.924.6891.
There is no doubt about it, the Craft Brew Industry is booming. The professionals at H&S do not anticipate a slow down in this industry in 2012, as a matter of fact; we are excited to announce we have launched a new division called The Brewers Professional Alliance.
The professionals at H&S have teamed up with the professionals at Parmenter O’Toole to create the ultimate resource for Craft Brewers. The Brewers Professional Alliance is able to guide those in the industry through tax, legal, and business issues. Our team has expertise in Lean Manufacturing, strategic planning, tax, accounting, IT, legal, internal controls/fraud prevention, mergers & acquisitions, board governance, human resources, and business valuations.
Remember to check if you are eligible for the Child and Dependent Care Expense tax credit!
Did you pay someone to care for your child, spouse, or dependent last year? If so, you may be eligible for the Child and Dependent Care Expense tax credit. Below are a few things you need to know:
Also, keep in mind that if a care provider was paid to work in your home, you may need to pay Social Security and Medicare tax, as well as, federal unemployment tax.
FREMONT, MI – H&S Companies announced today (January 27, 2011) the opening of new offices in Holland and Big Rapids. The two new locations were a result of mergers between Grace Van Haitsma of Van Haitsma & Associates, PC of Holland, and Roger Guiney, CPA of Big Rapids.
Click here to read the full press release.
FREMONT, MI – H&S Companies announced today (January 27, 2011) the opening of new offices in Holland and Big Rapids. The two new locations were a result of mergers between Grace Van Haitsma of Van Haitsma & Associates, PC of Holland, and Roger Guiney, CPA of Big Rapids.
Click here to read the full press release.
FREMONT, MI – H&S Companies announced today (January 27, 2011) the opening of new offices in Holland and Big Rapids. The two new locations were a result of mergers between Grace Van Haitsma of Van Haitsma & Associates, PC of Holland, and Roger Guiney, CPA of Big Rapids.
Click here to read the full press release.
Make sure you have internal controls established so an employee can’t run-off with your money. (Photo Credit: office.microsoft.com)
Did you see this story from the Orlando Sentinel: Lake Mary Embezzler stole $85,000 while repaying first victim $260,000
A woman embezzled money from a business and was then hired by another business to handle payroll and accounting, which gave her the means to embezzle again!
Remember, internal controls are crucial! Make sure you have a system of checks and balances in place to prevent embezzlement. If you need help implementing a system or are concerned there may be fraud occurring in your business contact Kit Powell, our Certified Fraud Examiner.
Kit Powell, CFE
231.924.8035
kitp@hscompanies.com
