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2013 Tax Checklist

Check out our 2013 Tax Newsletter to find out about some interesting changes in taxes this year.

Also, to make sure you don’t forget anything on your taxes, take a look at our handy tax checklist below!

2013 Tax Newsletter

2013 Tax Checklist PDF

CPA's & Business Advisors

31st Annual Tax Newsletter

In this Issue:

  • Expired Tax Provisions
  • Taxpayer Relief Act of 2012
  • The Affordable Care Act (Obamacare)

Jan. 2014 Tax Newsletter

Tax Tips for Farmers



Below are a few tax tips for anyone who owns or operates a farm:

  • If your crops were damaged and you received insurance payments for the damages, that money counts as income. You must report it to the IRS.
  • You can deduct ordinary expenses that are considered to be common in the farming business. Additionally, you can deduct necessary expenses that are considered necessary for business.
  • You’re allowed to deduct reasonable wages paid to your full-time and part-time employees. Be sure to withhold Social Security, Medicare, and income taxes from your employee’s wages.
  • If you purchased items for resale, such as livestock, you may be able to deduct the cost in the year of the sale, including freight charges for transporting livestock to your farm.
  • If bad weather forced you to sell more livestock or poultry than normal, you may be able to wait on reporting the gain of the sale.

 

For more information, contact Michaelia Breuker at 231.924.8072.

 

breuker-michaelia-accountant-farm-agricultureMichaelia Breuker
Accountant Specializing in Farm & Ag
231.924.8072
michaeliab@hscompanies.com

Issues with IRS Form 8863 Causes Refund Delay for Some Taxpayers



hs-companies-form-8863-delaysThe IRS released a statement that some taxpayers who filed their return between February 14th and February 22nd may experience a delay in receiving their refund due to a software glitch. AccountingToday reported that more than 600,000 returns have been affected, with a large portion of those returns being from H&R Block.

According to AccountingToday, the delays occurred due to changes to Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits). Originally, preparers were told to respond Yes or No to lines 23-26, which were added to the form this year.  The forms found in some tax software were programmed to actually require an “N” for no. The IRS is being forced to review the forms because of glitches in the programming. The IRS said it is working with affected software companies on the issue, so that no further delays occur.

If you plan to complete your own taxes, be sure to check with your software provider regarding any issues.

Please note that H&S Companies has not experienced any delays due to this issue. Remember, you can check the status of your refund via the IRS tool “Where’s My Refund”.

 

Sources:
IRS Statement on Form 8863, Education Credits 
600,000+ Tax Refunds Delayed by Education Credit Glitch 

H&S Announces Addition of Farm and Agriculture Specialist



breuker-michaelia-hs-companies-web

H&S Companies is proud to announce the addition of Michaelia Breuker as their Farm and Agriculture Specialist.

FREMONT, MichiganH&S Companies is proud to announce the addition of Michaelia Breuker as their Farm and Agriculture Specialist. Michaelia graduated from Calvin College in 2012 with her Bachelor of Science degree in Accounting, and she has an extensive background in agriculture.

“I grew up on a dairy farm in Newaygo County,” said Michaelia Breuker, H&S Companies Farm and Agriculture Specialist, “I’m excited to have the opportunity to combine my passion for accounting with my love of agriculture.”

“We’re thrilled to have Michaelia on the team,” said Jack Hendon, H&S Companies Co-Founder, “from her family business, she has a deep understanding of the challenges farmers face.”

Michaelia feels that it is essential for the agricultural community to be aware of the 2013 tax provisions that could have a direct effect on their businesses.

“There are important provisions that need to be recognized by farmers, which may affect how they operate in the next few years.  I want to make sure that this information is received in a timely matter, especially when it has a direct impact on their businesses,”  Breuker said.

According to Breuker, there are currently three key tax provisions farmers need to be aware of:

  • Farmers – You’ve got more time this year to file and pay your income taxes. Instead of March 1, 2013, you have until April 15, 2013.
  • Bought more than $139,000 of equipment (new or used) last year? Congress retroactively increased Section 179 Expensing election from $139,000 to $500,000. This limit is good for 2013 as well, but drops to $25,000 for 2014!
  • 50% Bonus Depreciation (new equipment only) was also extended for all of 2013 and then vanishes. 2013 may be a great year for upgrading your equipment!

 

To learn more, contact Michaelia Breuker at 231.924.8072.

H&S Announces Addition of Farm and Agriculture Specialist




breuker-michaelia-hs-companies-web

H&S Companies is proud to announce the addition of Michaelia Breuker as their Farm and Agriculture Specialist.


FREMONT, MichiganH&S Companies is proud to announce the addition of Michaelia Breuker as their Farm and Agriculture Specialist. Michaelia graduated from Calvin College in 2012 with her Bachelor of Science degree in Accounting, and she has an extensive background in agriculture.
“I grew up on a dairy farm in Newaygo County,” said Michaelia Breuker, H&S Companies Farm and Agriculture Specialist, “I’m excited to have the opportunity to combine my passion for accounting with my love of agriculture.”
“We’re thrilled to have Michaelia on the team,” said Jack Hendon, H&S Companies Co-Founder, “from her family business, she has a deep understanding of the challenges farmers face.”
Michaelia feels that it is essential for the agricultural community to be aware of the 2013 tax provisions that could have a direct effect on their businesses.
“There are important provisions that need to be recognized by farmers, which may affect how they operate in the next few years.  I want to make sure that this information is received in a timely matter, especially when it has a direct impact on their businesses,”  Breuker said.
According to Breuker, there are currently three key tax provisions farmers need to be aware of:

  • Farmers – You’ve got more time this year to file and pay your income taxes. Instead of March 1, 2013, you have until April 15, 2013.
  • Bought more than $139,000 of equipment (new or used) last year? Congress retroactively increased Section 179 Expensing election from $139,000 to $500,000. This limit is good for 2013 as well, but drops to $25,000 for 2014!
  • 50% Bonus Depreciation (new equipment only) was also extended for all of 2013 and then vanishes. 2013 may be a great year for upgrading your equipment!

 

To learn more, contact Michaelia Breuker at 231.924.8072.

H&S Announces Addition of Farm and Agriculture Specialist



H&S Companies is proud to announce the addition of Michaelia Breuker as their Farm and Agriculture Specialist.

FREMONT, MichiganH&S Companies is proud to announce the addition of Michaelia Breuker as their Farm and Agriculture Specialist. Michaelia graduated from Calvin College in 2012 with her Bachelor of Science degree in Accounting, and she has an extensive background in agriculture.
“I grew up on a dairy farm in Newaygo County,” said Michaelia Breuker, H&S Companies Farm and Agriculture Specialist, “I’m excited to have the opportunity to combine my passion for accounting with my love of agriculture.”
“We’re thrilled to have Michaelia on the team,” said Jack Hendon, H&S Companies Co-Founder, “from her family business, she has a deep understanding of the challenges farmers face.”
Michaelia feels that it is essential for the agricultural community to be aware of the 2013 tax provisions that could have a direct effect on their businesses.
“There are important provisions that need to be recognized by farmers, which may affect how they operate in the next few years.  I want to make sure that this information is received in a timely matter, especially when it has a direct impact on their businesses,”  Breuker said.
According to Breuker, there are currently three key tax provisions farmers need to be aware of:

  • Farmers – You’ve got more time this year to file and pay your income taxes. Instead of March 1, 2013, you have until April 15, 2013.
  • Bought more than $139,000 of equipment (new or used) last year? Congress retroactively increased Section 179 Expensing election from $139,000 to $500,000. This limit is good for 2013 as well, but drops to $25,000 for 2014!
  • 50% Bonus Depreciation (new equipment only) was also extended for all of 2013 and then vanishes. 2013 may be a great year for upgrading your equipment!

 

To learn more, contact Michaelia Breuker at 231.924.8072.

Go Green! Get A Tax Credit?



non-business-energy-property-credit-green-house

The non-business energy property credit has been extended through 12/31/13.

Thanks to the American Taxpayer Relief Act of 2012, the non-business energy property credit has been extended through 12/31/13. If you’re planning to make “green” improvements around your home in 2013, you may be able to take advantage of this credit through the 2013 tax year (and if you did make “green” improvements in 2012, you may be able to take advantage of the credit on this year’s tax return!).

Here’s what you need to know:

  • Qualifying improvements include: adding insulation, energy-efficient heating and cooling systems, energy-efficient windows, etc.
  • You must make these upgrades to your primary residence located in the United States.
  • The credit is worth 10% of all qualifying improvements and has a maximum limit of $500 ($200 for windows and skylights).
  • Be careful when you’re shopping. Manufactures must certify that their products meet the energy-efficient standards and must provide you with a written statement (i.e. on the packaging or on their website).
  • Qualifying improvements must be placed in service by December 31, 2013.

 

Have questions about the non-business energy property credit? Contact your H&S tax professional today.

Want to learn more about changes caused by the American Taxpayer Relief Act of 2012? Download our 30th Annual Tax Letter!

2012 Newaygo County Farmers Forum A Huge Success



hs-nia-farmers-forum-2012

The Newaygo Insurance Agency’s 2012 Newaygo County Farmers Forum, held on Tuesday December 11, 2012, was a huge success! Photo Credit: office.microsoft.com

The Newaygo Insurance Agency’s 2012 Newaygo County Farmers Forum, held on Tuesday December 11, 2012, was a huge success! Approximately 120 farmers from across the county gathered at Northern Trails Restaurant and listened to experts from across disciplines to bring them up-to-speed on matters of concern.

Chad Appold, H&S Companies CPA, and Jack Hendon, H&S Co-Founder, presented to the group on tax changes that may affect farmers in 2013.

“The Farmers Forum was a very impressive gathering,” said Jack Hendon, H&S Companies Co-Founder, “Dan Johnson, of Newaygo Insurance Agency, did a terrific job of bringing together subject matter experts! We’re looking forward to next year’s forum.”

Other items covered, included: safety issues concerning farmers, Right to Farm Act proposed changes, and weather insurance information.

To learn more about tax changes that are slated to affect farmers, download our free outline or contact Chad Appold.

 

Chad Appold
Certified Public Accountant
231.924.8003
chada@hscompanies.com

Retirement Plan Dollar Limits to Increase in 2013



retirement, nest egg

Retirement savings dollar limits are increasing in 2013

In 2013, the IRS is increasing dollar limits for many types of retirement savings accounts due to increase in the cost-of-living. Below is a list of the retirement savings programs that will have an increase and their new 2013 maximum dollar limit:

  • Defined Benefit Plans: $205,000 annual benefit
  • Defined Contribution Plans: $51,000 annual addition
  • Annual Compensation Limit: $255,000
  • Elective Deferrals: $17,500 annual exclusion
  • Deferred Compensation Plans: $17,500 (applies to nonprofits and state and local governments)
  • ESOP Five-Year Distribution Period: $1,035,000 in 2013; $205,000 will be the dollar amount used to determine the lengthening of the distribution period in 2013
  • Government Plans: $380,000 annual compensation limit
  • SIMPLE Accounts: $12,000 annual salary deferral

For more information on 2013 changes and how they will affect your tax plan, contact H&S Companies today.