Tag: tax

Renting out your primary residence? If it’s less than 15 days, it’s tax free

If you receive rental income for the use of a dwelling unit, such as a house or an apartment, you may deduct certain expenses. These expenses, which may include mortgage interest, real estate taxes, casualty losses, maintenance, utilities, insurance, and...

36 months of nonpayment is no longer a debt discharge reporting event

The IRS recently finalized a proposed rule issued in 2014 removing the three-year nonpayment testing period from the list of “events” for determining when debt had been discharged for purposes of issuing Form 1099-C, Cancellation of Debt, to taxpayers (T.D. 9793)....

Potential tax benefit for U.S. companies that export

U.S. exporters that create an Interest Charge Domestic International Sales Corporation (IC-DISC) can benefit from potentially large tax savings with relatively low initial costs. By incorporating an IC-DISC, exporters can transform at least one-half of their taxable income from qualified...

Back-to-school tax tips

It’s hard to believe, but the first day of school is nearly upon us. According to TaxAudit.com, taxpayers should keep the following tips in mind when it comes to education-related tax breaks and deductions this school year. Before and After...

Tax benefits of putting junior family members on the payroll

In addition, employing a child age 18 (or if a full-time student, age 19–23) may be a way to save taxes on the child's unearned income. Here are the key considerations. You can turn some of your high-taxed income into tax-free...

IRS unveils PayNearMe program

  • June 9, 2016
  • Maria Montie, CPA, MST, CVA, MAFF

If you’re an individual taxpayers without a checking account or credit card, you can now pay your federal tax bill in cash at participating retail stores. The IRS recently unveiled PayNearMe, a program where taxpayers can pay up to $1,000...

In honor of Memorial Day: Armed Forces’ Tax Guide

  • May 30, 2016
  • Mark Hughes CPA CFE

In honor of Memorial Day, we are reminding all active members of the U.S. Armed Forces about special tax situations that apply to them, as outlined in the Armed Forces’ Tax Guide. We hope you enjoy a happy and safe...

New goodwill amortization option for private company GAAP-basis financial statements

  • February 27, 2016
  • Marianne Lilly, CPA, CGMA, CFE

If your company has GAAP-basis financial statement with goodwill, there is a new goodwill amortization option which is effective for annual periods beginning after December 15, 2014, and interim periods beginning after December 15, 2015. Private company GAAP allows the company the option of amortizing...

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...

Michigan to institute offer-in-compromise program

  • November 6, 2014
  • Paul Carter CPA

On January 1, 2015, the State of Michigan will institute an “offer-in-compromise” program similar to the IRS. This program is intended for taxpayers with severe financial hardship and extenuating circumstances. It will allow taxpayers to request a tax debt settlement for...