Category: Tax
Affordable Care Act FAQs for individuals
The Supreme Court’s landmark decision on the Affordable Care Act (ACA) has resulted in uncertainties among many individuals, regardless of their tax bracket, personal circumstances or state of residence. The Michigan Association of Certified Public Accountants has compiled Affordable Care...
Lack of local ties results in denial of foreign earned income exclusion
On January 20, a U.S. Tax Court found that Joel B. Evans, an oil drilling employee stationed in Russia, couldn’t claim the foreign earned income exclusion because he couldn’t show that his tax home was in Russia. The court ruled...
When is a building placed in service for purposes of depreciation?
In a recent tax case (Stine, LLC v. USA), Stine, a retail operation in Louisiana that among other things sells home building material and supplies, sought to have the government ordered to refund taxes it paid under protest. The government...
IRS eases repair regulations for small businesses
The Internal Revenue Service has issued a new revenue procedure that aims to make it easier for small business owners to comply with the final tangible property repair regulations. The new procedure allows small businesses to change a method of accounting under...
IRS gives employers extension on filing for Work Opportunity Tax Credit
The Internal Revenue Service is giving employers extra time beyond the 28-day deadline for submitting a form to claim the Work Opportunity Tax Credit after the WOTC was extended late last year by Congress. Notice 2015-13 provides guidance on Section 119...
SR Client Question: Can I avoid paying taxes on the sale of my primary residence?
A person selling his or her primary residence can, if certain conditions are met, avoid paying tax on some or all of the gain realized. This is allowed per code section 121 of the Internal Revenue Code. A maximum gain...
URGENT: IRS letter to confirm your identity is authentic
Taxpayers are suspicious of any "official-looking" IRS communications these days due to the prevalence of tax-related phishing and scam attempts, but if you get a letter from the IRS this tax season asking you to verify you identity, it's probably...
Tips on managing the Net Investment Income Tax
2014 marks the second year that many high-income clients will be hit with the 3.8 percent investment income surtax that's part of the Affordable Care Act. The surtax on investment income applies to taxpayers with modified adjusted income above $250,000...
CPA vs. TurboTax: The value of an inquisitive mind
It's tax season, which means millions of Americans are evaluating their tax return preparation options and deciding which strategy is best for their individual scenario. For many, selecting a tax preparation software service like TurboTax might seem like the best option....
ABLE Act helps individuals with disabilities
Included in the Tax Increase Prevention Act of 2014 is a new type of tax-advantaged savings program for individuals with disabilities that begins in tax years after December 31, 2014. The new provisions are provided in the Achieving a Better...