September 15 – Corporations
File a 2014 calendar year income tax return (Form 1120 or 1120-A) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an automatic 6-month extension.
September 15 – S Corporations
File a 2014 calendar year income tax return (Form 1120S) and pay any tax due. This due date applies only if you requested an automatic 6-month extension.
September 15 – Corporations Read More
If your employer does not reimburse you for your work-related expenses, any allowable expense in excess of 2% of your adjusted gross income is fully deductible on Schedule A.
If your employer does reimburse you, the deductibility of the expense depends on the type of reimbursement plan you have. There are two types of employer reimbursement plans: an accountable plan and a non-accountable plan.
Under an accountable plan, your employer’s reimbursement or allowance arrangement must require you to: (a) adequately account your expenses to your employer, and (b) return any excess reimbursement or allowance. Read More
International Tax Review / TPWeek interviewed 180 leading in-house tax professionals to discover their opinions on the Base Erosion and Profit Shifting (BEPS) project and what shape their transfer pricing strategies are taking as final BEPS guidance draws near. As the Infographic shows below, the approach of these tax executives proved to be very interesting.
Where do you and your tax organization stand on being prepared for BEPS? Are you being proactive in your approach for responding to BEPS? Are you doing nothing at all until the project is finalized?
See Infographic below: Read More
This Blog Post on TaxConnections is an effort to respond in a practical way to the questions that people have. Please watch my presentation at the Internet Tax Summit to learn more.
“I Really Wish I Could Do Retirement Planning Like A “Normal” Person. But, I’m an American Abroad. I hear I can’t Invest in Mutual funds in my Country of Residence.
The “Coming into U.S. Tax Compliance Book” is designed to provide an overview of how to bring some sanity to your life.
My Assumptions: This discussion assumes without deciding, that non-U.S. mutual funds are PFICs AKA “Passive Foreign Investment Corporations”. Although a clear majority of Read More
In taxes, there is a saying: “Those who keep records win.” If you are an investor, you may have a variety of securities, including stocks, bonds, mutual funds, etc. When you sell those securities, naturally you want to minimize your gains or maximize your losses for tax purposes. Gain or loss is measured from your tax basis in the investment (asset), which makes it important to keep track of the basis in all your investments.
Generally, your basis in an investment begins with the price that was paid to purchase the investment. However, that will not be the case if the investment was acquired by gift or inheritance. For inherited assets, the basis generally begins with the FMV of the asset on the decedent’s date of death or an alternative valuation date, if chosen by the executor of Read More
If you are one of the over 1 million individuals who received an Obamacare health insurance premium subsidy last year and have yet to file your 2014 tax return, you are risking your opportunity to receive a subsidy in 2016.
The subsidy, which is paid by the government to your insurer to reduce the premiums you owe, is actually an advance payment of the premium tax credit (PTC) based upon your “estimated” income for the year. Your actual PTC is based on your “actual” income as determined on your tax return. If the advance PTC (subsidy) was less than the actual PTC as determined on your tax return, you are entitled to the difference. On the other hand, if your actual PTC is less than the advance amount, you may owe Uncle Sam some or all of the difference. Read More
Selling a property one has owned for a long period of time will frequently result in a large capital gain, and reporting all of the gain in one year will generally expose the gain to higher than normal capital gains rates and subject the gain to the 3.8% surtax on net investment income added by Obamacare.
Capital gains rates: Long-term capital gains can be taxed at 0%, 15%, or 20% depending upon the taxpayer’s regular tax bracket for the year. At the low end, if your regular tax bracket is 15% or less, the capital gains rate is zero. If your regular tax bracket is 25% to 35%, then the top capital gains rate is 15%. However, if your regular tax bracket is 39.6%, the capital gains rate is 20%. As you can see, larger gains push the taxpayer into higher capital gains rates. Read More
Each year, many people get a larger refund than they expected. Some find they owe a lot more tax than they thought they would. If this happened to you, review your situation to prevent another tax surprise. Did you marry? Have a child? Have a change in income? Some life events can have a major effect on your taxes. You can bring the tax you pay closer to the amount you owe. Here are some key IRS tips to help you come up with a plan of action:
• New Job. When you start a new job, you must fill out a Form W-4, Employee’s Withholding Allowance Certificate and give it to your employer. Your employer will use the form to figure the amount of federal income tax to withhold from your pay. Use the IRS Withholding Calculator on IRS.gov to help you fill out the form. This tool is easy to use and Read More
Congress recently passed some legislation that changes the due dates of certain returns. Partnership and S Corporation returns using a calendar year will be due on March 15 (two and one-half months after the end of the fiscal year). This is effective for tax years beginning after December 15, 2015.
C Corporation returns using a calendar year will be due will be due April 15 (three and one-half months after the end of the fiscal year). This is effective for tax years beginning after December 15, 2015 unless the fiscal year ends June 30, in which case it is effective for tax years beginning after December 31, 2025. Go figure.
The new law also changes the due date for the FinCEN Report 114 to April 15. Remember Read More
Do you plan to donate your services to charity this summer? Will you travel as part of the service? If so, some travel expenses may help lower your taxes when you file your tax return next year. Here are several tax tips that you should know if you travel while giving your services to charity.
• Qualified Charities. In order to deduct your costs, your volunteer work must be for a qualified charity. Most groups must apply to the IRS to become qualified. Churches and governments are qualified, and do not need to apply to the IRS. Ask the group about its IRS status before you donate. You can also use the Select Check tool on IRS.gov to check the group’s status. Read More
When a mortgage lender receives $600 or more in interest from a borrower, it must file a Form 1098, indicating the amount of interest. Congress recently passed legislation that added some additional information to this information return. Information that must now be included is:
• The amount of the outstanding mortgage principal balance as of the beginning of the calendar year.
• The mortgage origination date
• The address of the property securing the mortgage. Read More
August 10 – Social Security, Medicare and Withheld Income Tax
File Form 941 for the second quarter of 2015. This due date applies only if you deposited the tax for the quarter in full and on time.
August 17 – Social Security, Medicare and Withheld Income Tax
If the monthly deposit rule applies, deposit the tax for payments in July.
August 17 – Non-Payroll Withholding
If the monthly deposit rule applies, deposit the tax for payments in July. Read More
Disproportionate Distributions Won’t Automatically Terminate S Status
Michigan & Wisconsin And Sales Tax – SaaS, Software & Other
California Senate Passes Bill Allowing Undocumented Immigrants To Get Homebuying Loans (23-11 Vote)
How To Open A U.S. LLC For Non-US Residents
New California State Exercising Right To Become The 51st State
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