Category: Tax

Michigan Sales Tax to Rise to 7%?

A joint resolution introduced Oct. 18 in the Michigan Senate proposes to amend Article IX, Section 8 of the Michigan Constitution in order to increase the sales tax rate by 1%, to 7%, beginning January 1, 2012. The resolution further...

From the Minutia File: Tax deductions that straddle the New Year

Our clients give generously to charitable organizations throughout the year, but not suprisingly a looming tax year-end deadline sends many pens flying to checkbooks in late December.  Straddling the tax years presents some question of in which year a deduction...

Client Question: Should I convert my home to a rental property?

For various reasons, including a significantly depressed real estate market, homeowners can consider converting their personal home to rental property. The process for making this decision should include an analysis of economic factors, such as the homeowners’ marginal tax rate...

Client Question: Are insurance proceeds I receive from a fire loss taxable?

As almost always, the answer is "it depends".  In general, there is taxable income if the amount received from the insurance policy is more than the cost of what was lost.  However, there are also exceptions to this rule.  For...

Seven Tax Tips for Recently Married Taxpayers

With the summer wedding season in full swing, the Internal Revenue Service advises the soon-to-be married and the just-married to review their changing tax status. If you recently got married or are planning a wedding, the last thing on your...

Don’t miss your new business startup deductions

  • August 23, 2011
  • Steve Wisinski, CPA, MAFF

The IRS has issued final regulation on the election to deduct startup expenses.  These rules apply to individuals, corporations and partnerships.  These entities can deduct (in the tax year an active trade or business begins) up to $5,000 of startup...

Back-to-School Tips from the IRS for Students and Parents Paying College Expenses

  • August 18, 2011
  • Steve Wisinski, CPA, MAFF

It's back to school time!  The Internal Revenue Service reminds students or parents paying tuition and other fees to keep receipts and to be aware of some tax benefits that can help offset college costs. Typically, these benefits apply to...

SR Client Question: Can I deduct expenses related to my “Home Office”?

Whether you are self-employed or an employee, if you use a portion of your home for business, you may be able to take a home office deduction. Generally, in order to claim a business deduction for your home, you must...

Still waiting for your K-1s?

  • July 14, 2011
  • Steve Wisinski, CPA, MAFF

Although October 15 seems far away (amid summer BBQs and lake trips), you only have three months until the extended tax filing deadline.  Perhaps there are some partnership or trust K-1s that are needed to complete your tax return, and...

Client Question: “I’m unhappy with my annuity. What are the tax implications of changing it?”

You have invested in an annuity.  After a period of time, you review the results of your investment and determine that the annuity is not doing what you wanted it to do when you made the investment.  A tax-free exchange...