Tag Archive for: Taxes

CPA's & Business Advisors

H&S Tax Newsletter

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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!

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CPA's & Business Advisors

Thieves stole tax info from IRS!

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USA Today released an article on May 27th saying thieves hacked into an Internal Revenue Service online service, coming away with the tax information from more than 100,000 taxpayer accounts.

Click the link or image below to read the full article:

http://www.usatoday.com/story/money/personalfinance/2015/05/26/irs-breach/27975205/

thief graphic

Click here for the USA Today article: IRS says thieves stole tax info from 100,000

 

H&S Fall Newsletter

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In this Issue:
Learn about the Workforce Opportunity Wage Act and how it will affect hourly employees. How to provide proof of Sales Tax Payment & avoid Use Tax Assesments. Also, hear from our IT department on Mobile Device Management – this is becoming a hot topic for companies! And more!
 

Click to Download

Click to Download


 

CPA's & Business Advisors

H&S Fall Newsletter

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In this Issue:

Learn about the Workforce Opportunity Wage Act and how it will affect hourly employees. How to provide proof of Sales Tax Payment & avoid Use Tax Assesments. Also, hear from our IT department on Mobile Device Management – this is becoming a hot topic for companies! And more!

 

Click to Download

Click to Download

 

Home Office Deduction Criteria

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hscompanies-home-office-deduction

Do you use your home for business?

Do you use your home for business? If so, you may be able to deduct expenses for the business use of your home, such as: mortgage interest, insurance, utilities, repairs, and depreciation.

You must meet two requirements in order for your home to qualify as a deduction.

  • You must use your home office space regularly and exclusively for business.
  • You must run your business primarily out of your home office.

 
Keep in mind that typically home office deductions are based on the percentage of your home that is devoted to the business. If you use a spare room as your office, you’ll need to calculate the percentage of your home you have devoted to business activities.

If you telecommute and want to deduct your home office workspace, you must meet the follow criteria:

  • The use of your home workspace must be for the convenience of your employer.
  • You can’t rent any part of your home to your employer and use the rented portion to perform services for that employer as their employee.

 
Daycare providers have special qualifications for deducting their workspace. You may be allowed to deduct business expenses for parts of your home, even if you use them for non-business purposes.

  • You must be providing daycare for children, people age 65 or older, or for people who are physically or mentally unable to care for themselves.
  • You must have applied for, been granted, or be exempt from having one of the following: a license, certification, registration, or approval as a daycare center, family daycare home, or group daycare home.

 

To learn more about deducting your home business workspace, contact H&S Companies.

Sources:
Home Office Deduction
Publication 587, Business Use of Your Home  

Go Green! Get A Tax Credit?

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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!

What is the 3.8% Tax?

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3.8% Tax

You will NOT pay the tax if you sell your home and the gain qualifies for the $250,000/$500,000 principal residence exclusion.

The 3.8% tax has been a topic of heated discussion since it was slipped into the healthcare bill in 2010. The law is set to take effect in 2013, yet many people are still confused as to what exactly will be taxed.

Here’s what you need to know about the 3.8%:

  • The 3.8% tax applies to net investment income — capital gains, net rents (so rent after expenses are deducted), passive income from partnerships, interest, and dividends.
  • For those who are single the tax will apply to the lesser of net investment income or income over $200,000; for those filing jointly, over $250,000. This means if a single person has $20,000 of net investment income and adjusted gross income of $210,000, the tax applies to $10,000 (the portion exceeding $200,000).
  • This tax goes into effect in 2013 and will be reported on the tax return you file in 2014.

 

Below are 4 situations where the 3.8% tax will NOT apply:

  • You will NOT pay the tax if you sell your home and the gain qualifies for the $250,000/$500,000 principal residence exclusion.
  • You will NOT pay this tax if you buy a home, as it will NOT be collected as a transfer tax.
  • Have a million dollars but didn’t earn a cent of it from investment income? You will NOT pay the 3.8% tax.
  • Are you single and made $199,000, or married and made $249,000, and some of that income came from investment income? You will NOT pay the 3.8% tax.

 

Still have questions about how the 3.8% tax will affect you? Contact H&S today.

 
photo credit: Images_of_Money via photopin cc

Year-End Tax Planning | C-Corp Income – Accelerate or Defer?

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C-Corp TaxThe Economic Growth and Tax Relief Reconciliation Act (EGTRAA) of 2001 is scheduled to sunset at the end of the year. The uncertainty over the EGTRRA sunset and how it will affect 2013 tax rates makes tax planning difficult for individuals. C-Corporations, however, should keep in mind that they need to decide whether to accelerate or defer their income as EGTRRA sunsets will not affect corporate rates. There are no significant proposals to raise corporate tax rates, yet.
With so much uncertainty, it may be advisable to accelerate deductions or defer income to another year if it will put you in a more favorable tax bracket.
To learn more contact an H&S tax professional today.

Year-End Tax Planning | C-Corp Income – Accelerate or Defer?

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C-Corp TaxThe Economic Growth and Tax Relief Reconciliation Act (EGTRAA) of 2001 is scheduled to sunset at the end of the year. The uncertainty over the EGTRRA sunset and how it will affect 2013 tax rates makes tax planning difficult for individuals. C-Corporations, however, should keep in mind that they need to decide whether to accelerate or defer their income as EGTRRA sunsets will not affect corporate rates. There are no significant proposals to raise corporate tax rates, yet.

With so much uncertainty, it may be advisable to accelerate deductions or defer income to another year if it will put you in a more favorable tax bracket.

To learn more contact an H&S tax professional today.

Still Haven’t Had Your Taxes Done? Time is Running Out!

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The tax deadline is quickly approaching; make sure you get your paperwork in. (photo credit: office.microsoft.com)

Taxes are due tomorrow! So, what do you do if you still haven’t had your taxes done? It’s best to be proactive, and work to avoid penalties. At this point, it is probably too late to have a tax professional complete and file your taxes by the deadline, but there is still action you can take.

  • File for an extension This will extend the amount of time you have to file your tax paperwork, however, it WILL NOT extend the amount of time you have to pay if you owe money. You can file for an extension on the IRS website.
  • Send the estimated amount you owe by April 17th Remember it’s best to err on the side of caution, because if you owe more than you send, you will still be penalized. If you are going to receive money back then you have three years to file (and with the extension you have 3 years and 6 months).
  • Have your taxes completed as soon as possible Be sure to file your paperwork as soon as possible, so you can receive any money back you deserve.

Still have questions? Contact an H&S tax professional today.

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