Holland’s Blog

Welcome to my Blog!  As owner of Holland & Company, CPAs I come across various pieces of tax and accounting related information that I believe my clients will find interesting and useful.   Below are blogs that cover these various topics.  Feel free to browse these blogs and post comments.  I encourage you to contact us with questions or to discuss how these latest topics specifically affect your personal situation.   Dean Holland, CPA

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

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Dear Tax Payer, 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…

IRS Highlights Significant 2016 Tax Changes for the Current Filing Season

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Dear Tax Payer, Recently the IRS released a fact sheet highlighting some of the important 2016 tax changes that affect the current tax return filing season.   Read this article to learn more. Sincerely Yours, Dean R. Holland, CPA, MSA President  

Year End Tax Planning for Individuals and Businesses

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Dear Client, 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…

Tax Implications of Divorce and Legal Separation

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Dear Tax Payer, 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. Read this…

Overview of Various Types of IRAs Available

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Dear Tax Payer, 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…

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

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Dear Tax Payer, 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…

Individual Extenders 2015 PATH Act

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Dear Individual Tax Payer, 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.  Read this article to learn more.…

Business Extenders 2015 PATH Act

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Dear Business Owner, 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.  Read this article to learn more. I…

Year-End Tax 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. Read this article…

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, business people or professionals who must travel for work reasons should keep in mind that they may…

Recent Small Business Related IRS Relief

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Dear Client, Recently the IRS release several small business related tax relief revenue procedures for 2014 and 2015. Please read this article and consult with your tax advisor or give us a call at 630-544-5340 if you wish to discuss any of these in detail. Sincerely, Dean Holland, CPA President

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

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Dear Client, 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…

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

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Dear Client, 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…

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

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Dear Client, 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…

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

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Dear Client, 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…

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

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Dear Client, 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…

Year-End Tax Planning for Individuals and Business Owners

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Dear Client, 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…

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

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Dear Client,  If you are turning 70 1/2 in 2015 and have IRA’s or qualified retirement plans, this is a must read article. Once again, please feel free to contact our office to discuss your personal tax situation. Sincerely,  Dean R. Holland, CPA President, Holland & Company CPAs

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

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If you are faced with retirement and/or separation of employment prior to your normal retirement age (65 or 66 for most of us) and have a situation where you must acquire health insurance prior to being eligible for medicare and have a 401 (k) rollover opportunity, then this article may be of interest to you. Click on…

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

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As the end of 2014 approaches, so does your last chance to utilize your IRA accounts for an interest-free and tax-free loan to help fund a property investment or other opportunity where short-term funding is required. Click on the following link to read more about this opportunity:  http://www.holland-cpas.com/last-chance-to-get-extended-interest-free-tax-free-loan-from-iras Sincerely, Dean R. Holland, CPA Holland &…

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 lucky enough to be offered the opportunity to take a job overseas, there are some important tax rules for the exclusion of income and living expenses that you should be aware of that can have a determining effect on your decision. Please read the following client letter that explains these rules in…

Section 125 Cafeteria Plan Explained

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As an employer, have you have considered offering your employees a pre-tax Cafeteria Plan as an employee benefit? If so, then click on the following link (http://www.holland-cpas.com/section-125-cafeteria-plan-explained/)  to learn more about this tax saving employee benefit that is relatively inexpensive to set up and administer. Sincerely, Dean R. Holland, CPA President Holland & Company CPAs

New 2014 Illinois Tax Laws

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The new year brings the enactment of over 200 new Illinois laws that go into effect on January 1, 2014. These new laws include increasing the state’s speed limits, legalizing medical marijuana, greater transparency and scrutiny of the expenditures of government grants, and the banning of cell phone use while driving. Click on this link…

Standard Mileage Rates for Business, Medical & Moving Decrease 0.5¢ Per Mile 2014

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Dear Business Client, The IRS just released the new mileage rates for business use, medical and charity use. The business use rate will decrease from 56.5 cents per mile to 56 cents per mile effective January 1, 2014.  Click on the link below to read a full article related to the 2014 mileage rate changes and…

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. The following link (http://www.holland-cpas.com/last-minute-year-end-2013-tax-saving-moves-for-corporations/)  will provide…

Speaking at Chicago Area Real Estate Investors Association (CAREIA) Meeting

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I will be speaking at the next meeting of the Chicago Real Estate Investors Association (CAREIA) on Monday November 18th from 7:00-9:30pm.  Please feel free to sign up to attend the event if you have any interest in Real Estate Investing. Here is a little more information about the specific topic I will be presenting:…

Guidance on Affordable Health Care Notice

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The Affordable Health Care Act has and will saddle small business owners with a lot of responsibility from now on. For example, every employer, big or small, is required by law to notify its employees of their health care options commencing October 1, 2013. The following link (http://www.holland-cpas.com/guidance-on-affordable-health-care-notice/)  will provide you with the necessary notification…