Sec. 121 gain exclusion does not offset suspended passive losses

Tweet Qualifying taxpayers who convert a principal residence to rental property and sell it can exclude gain under Sec. 121 without offsetting any passive losses carried forward. The IRS concluded in a Chief Counsel Advice memo (CCA) that excluded gain from the sale of a former principal residence that was converted to rental property is [...]

IRS Urged to Improve Final Testing Before Tax Season

Tweet The Internal Revenue Service should improve the way it performs final testing of its computer systems prior to tax season to make sure they are working properly, according to a new government report. The report, from the Treasury Inspector General for Tax Administration, noted that as part of its annual preparation for the tax [...]

Necessary Steps to Dissolve Your Company

Tweet When closing a business, there are certain steps every business owner must be sure to follow. Whether it’s for financial reasons, retirement, or simply because you’ve had enough of the business, there are myriad issues involved in winding down a business. Closing your business isn’t as easy as simply hanging a “closed” sign in [...]

Careful Handling of Capital Gains and Losses Can Save Taxes

Tweet Individuals who lost money in the stock market in 2014 may have other investment assets that have appreciated in value. These taxpayers should consider the extent to which they should sell appreciated assets before year end (if their value has peaked) and thereby offset gains with pre-existing losses. Long-term capital losses are used to [...]

Treasury and IRS Encourage Use of Annuities in 401(k) Plans

Tweet The Treasury Department and the Internal Revenue Service have issued guidance aimed at expanding the use of income annuities in 401(k) plans. The guidance issued Friday in Notice 2014-66 makes clear that plan sponsors can include deferred income annuities in target date funds that are used as a default investment, in a manner that [...]

Taxpayers Can Invest up to $18,000 in 401(k) Plans in 2015

Tweet The Internal Revenue Service posted the annual cost-of-living adjustments for pension plans and other retirement plans for 2015, allowing taxpayers to contribute up to $18,000 in their 401(k) plans in 2015. Many of the pension plan limitations will change for 2015 because the increase in the cost-of-living index met the statutory thresholds that trigger [...]

Tax Refund Size Increased This Year

Tweet The average tax refund in 2014 was $2,696, up 1.5 percent from the average refund of $2,656 in 2013, according to a new report on how well the Internal Revenue Service operated last tax season. The report, from the Treasury Inspector General for Tax Administration, found that the IRS managed to function well this [...]

Where are the growth opportunities for accounting practices?

Tweet At first glance, it appears that there aren’t many bright spots for growth for accounting practices today. For starters, look at the state of tax preparation. More and more clients are buying “do-it-yourself” tax programs and doing their tax returns themselves. Undoubtedly, the market for this service is shrinking. What about client accounting? It’s [...]

Small and Midsized Businesses Expect Robust Recovery

Tweet Business confidence and the economic outlook have improved dramatically for small and medium-sized enterprises in the past year, according to a new survey by the Association of Chartered Accountants and the Institute of MANAGEMENT Accountants. The joint ACCA and IMA survey polled SMEs about the 12 months leading up to mid-2014. The REPORT, titled [...]

Work Needed on Social Security Tax Claims

Tweet The Internal Revenue Service needs to do more to prevent improper claims for refunds of excess Social Security tax withholding, according to a recent government report. The report from the Treasury Inspector General for Tax Administration found that 72 percent of the 322 returns it examined had potentially erroneous claims totaling $177,854. In Tax [...]

Federal Tax Haul Hits New Highs

Tweet The federal government brought in $3.02 trillion in tax and other revenues in fiscal 2014 – its highest take ever. Year-end data from the September 2014 Monthly Treasury Statement of Receipts and Outlays revealed that the government brought in: •$1.39 trillion in individual income taxes; •$320.7 billion in corporate income taxes; and, •$1.03 trillion [...]

Raise Money Using a Self-Directed IRA

Tweet This clever twist on retirement fund investing could draw the patient investors business owners love. If you believe in your business and think it has the potential to be a long-term success, why not make an investment in it using your retirement plan? Can it be done? You bet it can, using a so-called [...]

Private Placements: What happens if you fail to file Form D (or file it late)?

Tweet Form D is a document that the SEC requires a company to file when it issues securities in a private placement under Regulation D. It must be filed with the SEC within 15 days of the first sale of a security in a private placement. In addition, for offerings made under Rule 506 (the [...]

Patient-Centered Outcomes Research Institute Fee

Tweet The Affordable Care Act imposes a fee on issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans to help fund the Patient-Centered Outcomes Research Institute. The fee, required to be reported only once a year on the second quarter Form 720 and paid by its due date, July 31, [...]

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