Articles

Below is an archive of articles that cover various aspects of Accounting and Tax Services.  Feel free to browse these articles or search for a category you are interested in. If you have any articles you would like to share with us, please email us at info@holland-cpas.com.

How to Avoid Tax Headaches when Employees Travel Out of Town on Business

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Business travel, an expensive and time-consuming activity for both the employer and employee, also can create tax problems for all concerned unless the rules are followed to the letter. If it’s done right, business travel will be fully deductible by the company (but only 50% of travel meals are deductible), tax-free to the employee, and…

IRS Highlights Significant 2016 Tax Changes for the Current Filing Season

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In a recent fact sheet from the IRS, the IRS highlighted some of the important 2016 tax changes that affect the current filing season. These include: Three extra days to file and pay. Taxpayers will have until Tuesday, Apr. 18, 2017 to file their 2016 individual income tax returns and pay any taxes due because…

Year End Tax Planning for Individuals and Businesses

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As the end of the year approaches, it is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next. Factors that compound the planning challenge this year include political and economic uncertainty, and Congress’s all too familiar failure to act on a number…

Tax Implications of Divorce and Legal Separation

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The following information can be helpful for individuals facing a divorce or legal separation. Unfortunately, in addition to the difficult personal issues the process entails, several tax concerns need to be addressed to ensure that tax costs are kept to a minimum and that important tax-related decisions are properly made. Support provisions. Where one spouse…

Overview of Various Type of IRAs Available

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At one time, there was relatively little confusion about IRAs because there was only one type available. Now, however, IRAs have proliferated-there’s the “traditional” IRA, which may be funded with deductible and/or nondeductible contributions, Roth IRA, SEP-IRA, and SIMPLE IRA. Some of these IRAs have similar features, but others have features that are unique. What…

Tax Considerations for Same Sex Spouses, Domestic Partners and Partners in Civil Unions

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The following are various tax considerations that arise for unmarried individuals who live together as registered domestic partners or partners in civil unions under state law. These partners may be of the same sex or, in some states, of opposite sexes. Individuals in these relationships have many of the same rights and responsibilities as married…

Individual Extenders 2015 PATH Act

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Congress has once again extended the “extenders,” a varied assortment of more than 50 individual and business tax deductions, tax credits, and other tax-saving laws which have been on the books for years but which technically are temporary because they have a specific end date. This package of tax breaks has repeatedly been temporarily extended…

Business Extenders 2015 PATH Act

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Dear Business Taxpayer, Congress has once again extended the “extenders,” a varied assortment of more than 50 individual and business tax deductions, tax credits, and other tax-saving laws which have been on the books for years but which technically are temporary because they have a specific end date. This package of tax breaks has repeatedly…

Year-End Planning Considerations for Those About to Get Married

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As if the process of getting married isn’t complex and difficult enough, prospective spouses also need to take income tax considerations into account before tying the knot. That’s particularly true for those who plan to marry late this year or early next year. As this article explains, from the federal income tax standpoint, those marrying…

Tax Benefits of Putting Junior Family Members on the Payroll

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As a business owner, you should be aware that you can save family income and payroll taxes by putting junior family members on the payroll. You may be able to turn high-taxed income into tax-free or low-taxed income, achieve social security tax savings (depending on how your business is organized), and even make retirement plan…

The Kiddie Tax

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One way of saving taxes if you are currently in a high tax bracket involves the transferring of assets into your children’s names. This tax technique is called income shifting. It seeks to take income out of your higher tax bracket and place it in the lower tax brackets of your children. While some tax…

Tax Breaks for Travelers Who Mix Some Pleasure With their Business Travel

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Although video conferencing has made inroads in the ranks of business travelers, there still are situations where it’s necessary to travel away from home overnight for face-to-face meetings with staff, management, or customers. In the current vacation season, businesspeople or professionals who must travel for work reasons should keep in mind that they may be…

Recent Small Business Related IRS Relief

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Small business taxpayers will be allowed to make certain accounting method changes under the tangible property (or “repair”) regulations without filing Form 3115, Application for Change in Accounting Method, in their first tax year beginning on or after Jan. 1, 2014, the effective date of the repair regulations, the IRS announced on Friday (Rev. Proc.…

Making the Best Tax Use of a Vacation Home Under Current Rules- PART 2

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An improved economy, strengthened real estate market in many areas, and a favorable interest rate environment has led to a resurgence of interest in vacation or second homes. These properties offer a chance to provide the family with a place to rest and relax at a reduced cost when compared to expensive short-term resort rentals,…

Making the Best Tax Use of a Vacation Home Under Today’s Rules – PART I

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An improved economy, a strengthened real estate market in many areas, and a favorable interest rate environment has led to a resurgence of interest in vacation or second homes. These properties offer a chance to provide the family with a place to rest and relax at a reduced cost when compared to expensive short-term resort…

Depreciation and Expensing Provisions Retroactively Extended by the Tax Increase Prevention Act of 2014

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On Dec. 16, 2014, Congress passed the “Tax Increase Prevention Act of 2014” (TIPA, or “the Act”), which the President recently signed into law. As explained in this Special Study, the Act extends through 2014 a host of depreciation and expensing provisions for businesses that had expired at the end of 2013, including generous Code…

Individual Tax Breaks Retroactively Extended by the Tax Increase Prevention Act of 2014

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On Dec. 16, 2014, Congress passed the “Tax Increase Prevention Act of 2014,” (TIPA, or “the Act”), which the President recently signed into law. As explained in this Special Study, the Act extends a host of individual tax provisions, including the above-the-line deductions for higher education expenses and educators’ expenses, deductions for state and local…

Business Tax Provisions Retroactively Extended by the Tax Increase Prevention Act of 2014

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On Dec. 16, 2014, Congress passed the “Tax Increase Prevention Act of 2014” (TIPA, or “the Act”), which the President has recently signed into law. As explained in this Special Study, the Act extends a host of tax breaks for businesses, including the research credit, the new markets tax credit, the employer wage credit for…

Year-End Tax Planning for Business Owners

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Year-end tax planning is especially challenging this year because Congress has yet to act on a host of tax breaks that expired at the end of 2013. Some of these tax breaks may be retroactively reinstated and extended, but Congress may not decide the fate of these tax breaks until the very end of this…

Year-End Tax Planning for Individuals

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Year-end tax planning is especially challenging this year because Congress has yet to act on a host of tax breaks that expired at the end of 2013. Some of these tax breaks may be retroactively reinstated and extended, but Congress may not decide the fate of these tax breaks until the very end of this…

Should Taxpayers Attaining Age 70 1/2 in 2014 Start RMDs this Year or Wait Until 2015?

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Taxpayers who attain age 70- 1/2 in 2014 have until their required beginning date of Apr. 1, 2015, to begin making required minimum distributions (RMDs) from their IRAs. As a general rule, they also must begin RMDs from their qualified retirement plan accounts by that date as well. This article explains when these taxpayers should…

How to Use a 401(k)-to-IRA Rollover to Boost a Future Health Premium Credit

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An individual who is a participant in a 401(k) plan and who is planning on separating from service before normal retirement age, say at age 62, faces many choices. One key decision will be whether to keep his 401(k) account intact or roll it over to an IRA. Another choice for many will be whether…

Last Chance to Get Extended Interest-Free, Tax-Free Loan From IRAs

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Earlier this year, IRS announced that it would: a) rescind its long-standing, liberal interpretation of the “one IRA rollover per year rule” under which taxpayers were allowed one rollover per year from each  of their IRAs; and b) adopt a new rule allowing only one rollover per year from all  of a taxpayer’s IRAs. However,…

President Obama Directs Treasury to Create New myRA Accounts

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As promised in his State of the Union address, President Obama has taken executive action and directed the Treasury Department to create a new retirement savings vehicle called a “myRA.” A White House spokesperson described a myRAs as being simple, safe, and affordable starter savings accounts to help low- and moderate-income taxpayers save for retirement.…

Foreign Earned Income and Housing Cost Exclusions for U.S. Citizens and Resident Aliens Living Abroad

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If you are a U.S. citizen (or U.S. resident alien) who plans on relocating to a foreign country for employment and would like to know whether income you earn from services you will perform abroad can be excluded from your gross income for U.S. tax purposes then this article will be of interest to you……

Section 125 Cafeteria Plan Explained

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Should You Offer a Section 125 Cafeteria Plan?   What is a cafeteria plan? A Section 125 Cafeteria Plan is a benefits package that employers can offer employees. This is a plan that was set forth by Section 125 of the Internal Revenue Service code. It is referred to as a Cafeteria Plan because it…

New 2014 Tax Law Changes

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A listing of all new laws scheduled to go into effect on January 1, 2014 follows. Not all measures approved by the General Assembly go into effect on the first of the year. Bills which contain a specific effective date within the language of the measure and bills that carry an “immediate” effective date can…

Standard Mileage Rates for Business, Medical and Moving Decrease 0.5 Cents Per Mile for 2014

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The IRS has announced that the optional mileage allowance for owned or leased autos (including vans, pickups or panel trucks) will decrease by 0.5¢ to 56¢ per mile for business travel after 2013. This rate can also be used by employers to reimburse tax-free under an accountable plan where employees who supply their own autos…

Last Minute Year-End 2013 Tax-Saving Moves for Corporations

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As year-end approaches, corporations could benefit from the following “last minute” tax-saving moves, including adjustments to income to preserve favorable estimated tax rules for 2014, deferral of certain advance payments to next year, and fine-tuning bonuses to make the most of the Code Sec. 199 domestic production activities deduction. Accelerating or deferring income can preserve…

Guidance on Affordable Health Care Notice

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Guidance on Forthcoming Required Employer Notice on Health Care Coverage Options The Employee Benefits Security Administration (EBSA) has issued guidance about the written notice that certain employers must provide to employees beginning in October on health care coverage options. Background.  Beginning Jan. 1, 2014, individuals and employees of small businesses will have access to affordable…