Article Highlights: • Noncash Charitable Contributions • Establishing Donation Value • Fair Market Value • Documentation Requirements • Appraisal Requirements One of the most common tax-deductible charitable contributions encountered is that of household goods and used clothing. The major complication of this type of contribution is establishing the dollar value of the … [Read more...] about Proving Noncash Charitable Contributions
Take Advantage of the IRA-to-Charity Provision
Article Highlights • IRA-to-Charity Transfer Provision Made Permanent • Required Minimum Distribution • How the Provision Plays Out on a Tax Return • Tax Benefits of the Provision Individuals age 70.5 or over—who must withdraw annual required minimum distributions (RMDs) from their IRAs—will be pleased to learn that the temporary provision allowing taxpayers to transfer up … [Read more...] about Take Advantage of the IRA-to-Charity Provision
Household Help: Employee or Contractor?
Article Highlights: • Household Employee Definition • Employee Control Factors • Self-employed or Employee • Withholding Requirements • Reporting Requirements Frequently taxpayers will hire an individual or firm to provide services at the taxpayer’s home. Because the IRS requires employers to withhold taxes for employees and issue them W-2s at the end of the year, the big … [Read more...] about Household Help: Employee or Contractor?
Not All Home Mortgage Interest Is Deductible; The IRS is Watching
Article Highlights: • Acquisition Debt • Equity Debt • Tracing Excess Debt • Unsecured Election One of the current IRS audit initiatives is checking to see if taxpayers are deducting too much home equity debt interest. Generally, taxpayers are allowed to deduct the interest on up to $1 million of home acquisition debt (includes subsequent debt incurred to make improvements, … [Read more...] about Not All Home Mortgage Interest Is Deductible; The IRS is Watching
February 2016 Business Due Dates
February 1 - 1099s Due to Service Providers If you are a business or rental property owner and paid $600 or more for the services of individuals (other than employees) during 2015, you are required to provide Form 1099 to those workers by February 1. "Services" can mean everything from labor, professional fees and materials, to rents on property. In order to avoid a penalty, … [Read more...] about February 2016 Business Due Dates