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CPA's & Business Advisors

H&S Farm Tax Newsletter

Farmers! H&S has some updates on tax issues that affect you. Check out our Farm Tax Newsletter for more information.

Click to Download

Click to Download

 

H&S Farm Tax Newsletter

Farmers! H&S has some updates on tax issues that affect you. Check out our Farm Tax Newsletter for more information.

Click to Download

Click to Download


 

CPA's & Business Advisors

H&S Tax Newsletter

It’s that time of year, and our tax newsletter is here…

This year’s tax newsletter is full of information for both individuals and businesses. Read about changes affecting Education, the Affordable Care Act, Minimum wage, tax tips and more!

Click to Download

Click to Download

 

H&S Tax Newsletter

It’s that time of year, and our tax newsletter is here…
This year’s tax newsletter is full of information for both individuals and businesses. Read about changes affecting Education, the Affordable Care Act, Minimum wage, tax tips and more!

Click to Download

Click to Download


 

Is All Income Taxable?



taxable-nontaxable-income

Gifts or inheritances received is typically not taxable.

Most income you earn throughout the year is taxable, however, some is not. Income that is not typically taxable, includes:

  • Child support payments
  • Gifts or inheritances received
  • Welfare benefits
  • Damage awards for physical injury or sickness
  • Cash rebates from a dealer of manufacturer for an item you purchased
  • Qualified reimbursed adoption expenses

Be sure to include all taxable income on your tax return, including the fair market value of any items you may have bartered throughout the year.

If you have questions regarding what is taxable income, contact H&S Companies.

Source
Taxable and Nontaxable Income

Get Financially Fit!



hscompanies-financial-fitness

It's time to get that piggy bank in shape!

You can’t make real money unless you are financially fit, so drop those dumbbells, grab your pen and paper, and join H&S Companies Partners Ward VanDam, Mike Farmer, and Randy Filbrandt at the Muskegon Lakeshore Chamber of Commerce March Business Briefing.

Randy will show you how to put together a financially fit plan to get you on track (and you don’t even have to roll out of bed at 5 am)! Need a little motivation? Muskegon Brake & Tires, REMAX, and The Fish Monger’s Wife will share case studies.

Plus, Ward VanDam will share a brief tax update (with all of the recent tax changes, you won’t want to miss it), and Mike Farmer will share a small business accounting update.

Don’t wait! Pre-Register now. Space is filling up fast.

Event Details

  • Tuesday, March 12, 2013
  • 8:00 – 9:30 a.m.
  • Muskegon Lakeshore Chamber of Commerce

 

Download the Business Briefing flyer for more information and for the pre-registration form.

Another Charitable Contribution Deduction Lost on a Paperwork Technicality

charitable contributions perks

If you made a charitable contribution and received a ‘perk’ in return, such as a free round of golf, you need to make sure you document it correctly.

Last week, a couple was denied their $18.5 million deduction due to a paperwork technicality, this week there was another case of a taxpayer losing their deduction based on a paperwork problem.

A $25,000 charitable contribution deduction was rejected because the donee organization failed to document whether the donor received any ‘perks’ as a result of the donation.

Why Does This Need To Be Documented?

This needs to be documented because you may only deduct the donation less any perks received. Here are a few examples:

  • You donate $200 to your favorite charity and, as a thank you, they give you two tickets to an MSU football game. The tickets have a fair market value of $100. You may only deduct $100 because of the ‘perk’ you received.
  • Concert tickets go on sale with all proceeds supporting your favorite charity, so you buy them for $50. The concert tickets have a fair market value of $14. You may only deduct $36.
  • You buy tickets to a benefit dinner for $500. The fair market value of the dinner and drinks you receive is $100. You may only deduct $400.
  • At a silent auction you bid $5000 on and win a flat screen TV. The fair market value of the TV is $1000, so you may only deduct $4000.

 

What if I received documentation from the organization I donated to, but they failed to document all the required information?

Contact the organization as soon as possible to receive proper documentation! The IRS has been cracking down on compliance with charitable contribution deductions, so you will want to make sure to keep your paperwork organized and ready for next tax season.

Further Reading + Useful Links
This Tax Season is Almost Over, But Stay Organized for Next!
In the News: Couple Loses $18.5 Million Deduction on Technicality
IRS Publication 561, Determining the Value of Donated Property
IRS Publication 526 (2012) Charitable Contributions

Form 8283, Noncash Charitable Contributions