Dear Valued Client,
We hope this newsletter finds you well. Here at Tyler & Studebaker, we are busy wrapping up taxpayer extensions which are due Oct. 15th. If we still haven't heard from you, there may stil be time. Give us a call to see how we might help you.
This month's newsletter covers many topics, such as the AMT relief measures for individuals and businesses provided by Congress and home energy credits that are set to expire at the end of this year.
We continue to stay up-to-date on any changes in legislation. As always, we are here to help you. After Oct. 15, we will be even more available for tax planning and business consulting appointments, so don't hesistate to give us a call.
Tyler & Studebaker, CPAs LLP
Moving Expenses Related to a New Job May Be Tax-Deductible |
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Did you recently move to another city for a new job or because your old job is now at a new location? A tax break may be coming your way.
In many instances, individuals who make a profit on the sale of a home may not have to pay a single dime of additional income tax to the IRS if certain criteria are met.
Use Appreciated Stock to Fund Obligations |
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A taxpayer may consider gifting stock that has appreciated in value to his or her children (over age 23) to help pay for education expenses or to purchase a home, or to parents to help pay for elderly care. By doing this, the tax liability for the gain from selling the stock is shifted to the child or parent, who with proper planning, may pay a lower tax on the profits than the taxpayer.
Can You Take a Home Office Deduction? |
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If you plan to run your small business out of your home, you may be tempted to “write-off” many of your household expenses. But how do you know what is deductible or not? Generally, expenses related to the rent, purchase, maintenance and repair of a personal residence are not deductible items.
Reminder – Special Business Provisions for 2008 |
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This is a reminder that the Economic Stimulus Package that passed earlier this year includes two major tax benefits for small to medium businesses that provide the opportunity to acquire business assets and write-off all or a substantial portion of the cost in the first year. As the end of the year approaches, you may wish to consider these two benefits as means of reducing current-year profits while expanding your business capabilities.
Home Energy Credits Expire At the End of 2008 |
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Unless Congress extends the tax provision, 2008 may be your last opportunity to take advantage of the tax credit for residential solar and fuel cell credits. Since they are scheduled to expire at the end of 2008, you will need to act soon if you are going green.
The alternative minimum tax (AMT) is affecting more individuals with each passing year, and the comprehensive reform that Congress has promised still remains to be seen. Instead, they have had a history of “patching” the AMT late in the year, and we expect a patch for 2008 before year-end.
Big Brother Will Begin Monitoring Merchants' Credit Card Transactions |
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In an effort to track down unreported small business income and increase income-reporting compliance, beginning in 2010, banks will be required to file an information return with the IRS reporting the total dollar amount of credit and debit card payments a merchant receives during the year, along with the merchant's name, address, and taxpayer identification number (TIN).
Tax Implications of Debt Relief |
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With the down turn in the economy, many taxpayers find themselves in debt over their heads and end up settling their debts for less than what is owed, or have their property repossessed or foreclosed upon. All of those actions will result in the individual being relieved of debt. In the eyes of the tax code, debt relief is treated as income, and the banks, lenders, etc., are required to issue a 1099-C reporting the debt relief income attributable to the taxpayer. That debt relief income is taxable to the taxpayer unless he or she qualifies for relief provided under provisions of the tax code.
It's Not Too Late to Claim Your Economic Stimulus Payment |
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It is not too late to file a return to claim an economic stimulus payment. The IRS urges people to file by October 15 to ensure that they receive a payment prior to year's end. It can take up to eight weeks for the IRS to process the return and issue the payment.
16 Bank Reconciliation Tips and Tricks |
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Although it may seem like drudgery, reconciling your bank account is a critical accounting task that you should carry out each month. Doing so helps ensure the integrity of your financial reports, since most of your accounting transactions ultimately affect cash in some fashion. Further, QuickBooks is a much more powerful tool for your business if you use it to its fullest extent. Most likely you’ve been reconciling your bank account all along, so in this article we’ll discuss the tricks and techniques you need to know to streamline the process.
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