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Adam’s Tax Accounting Service Blog

Note: Tax advice, articles, and content contained on this site are intended for informational and educational purposes only. They are not a substitute for professional advice. Tax matters are can be extremely complex and vary greatly for each individual or company. Please click here to read our complete disclosure and disclaimer for the information presented on this site.

Real Estate Investor vs. Professional: Why It Matters

Posted by on May 18, 2017 in Blog, General, Management, Tax Tips | 0 comments

Real Estate Investor vs. Professional: Why It Matters

Income and losses from investment real estate or rental property are passive by definition — unless you’re a real estate professional. Why does this matter? Passive income may be subject to the 3.8% net investment income tax (NIIT), and passive losses generally are deductible only against passive income, with the excess being carried forward. Of course the NIIT is part of the Affordable Care Act (ACA) and might be eliminated under ACA repeal and replace legislation or tax reform legislation. But if or when such legislation will be passed and...

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Want to Help Your Child (or Grandchild) Buy a Home? Don’t Wait!

Posted by on May 11, 2017 in Blog, General, Management, Tax Tips | 0 comments

Want to Help Your Child (or Grandchild) Buy a Home? Don’t Wait!

Mortgage interest rates are still at low levels, but are likely to increase as the Fed continues to raise rates. So if you’ve been thinking about helping your child — or grandchild — buy a home, consider acting soon. There also are some favorable tax factors that will help: 0% capital gains rate. If the child is in the 10% or 15% income tax bracket, instead of giving cash to help fund a down payment, consider giving long-term appreciated assets such as stock or mutual fund shares. The child can sell the assets without incurring any federal...

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Operating Across State Lines Presents Tax Risks — or Possibly Rewards

Posted by on May 11, 2017 in Blog, General, Management, Tax Tips | 0 comments

Operating Across State Lines Presents Tax Risks — or Possibly Rewards

With the ease and popularity of e-commerce, as well as the incredible efficiency of many supply chains, all sorts of companies are finding it easier than ever to widen their markets. Doing so has become so much more feasible that many businesses quickly find themselves crossing state lines. But there lies a risk in doing this: Operating in another state means possibly being subject to taxation in that state. The resulting liability can, in some cases, inhibit profitability. But sometimes it can produce tax savings. Do you have “nexus”?...

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Choosing Between a Calendar Tax Year and a Fiscal Tax Year

Posted by on May 4, 2017 in Blog, General, Management, Tax Tips | 0 comments

Choosing Between a Calendar Tax Year and a Fiscal Tax Year

Many business owners use a calendar year as their company’s tax year. It’s intuitive and aligns with most owners’ personal returns, making it about as simple as anything involving taxes can be. But for some businesses, choosing a fiscal tax year can make more sense. What’s a fiscal tax year? A fiscal tax year consists of 12 consecutive months that don’t begin on January 1 or end on December 31 — for example, July 1 through June 30 of the following year. The year doesn’t necessarily need to end on the last day of a month. It might end on the...

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Now’s a Great Time to Purge Old Tax Records

Posted by on May 1, 2017 in Blog, General, Management, Tax Tips | 0 comments

Now’s a Great Time to Purge Old Tax Records

Whether you filed your 2016 tax return by the April 18 deadline or you filed for an extension, you may be overwhelmed by the amount of documentation involved. While you need to hold on to all of your 2016 tax records for now, it’s a great time to take a look at your records for previous tax years to see what you can purge. Consider the statute of limitations At minimum, keep tax records for as long as the IRS has the ability to audit your return or assess additional taxes, which generally is three years after you file your return. This means...

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Do You Know the Tax Implications of Your C Corp.’s Buy-Sell Agreement?

Posted by on Apr 27, 2017 in Blog, General, Management, Tax Tips | 0 comments

Do You Know the Tax Implications of Your C Corp.’s Buy-Sell Agreement?

Private companies with more than one owner should have a buy-sell agreement to spell out how ownership shares will change hands should an owner depart. For businesses structured as C corporations, the agreements also have significant tax implications that are important to understand. Buy-sell basics A buy-sell agreement sets up the parameters for transferring ownership interests following stated “triggering events,” such as an owner’s death or long-term disability, loss of license or other legal incapacitation, retirement, bankruptcy, or...

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Individual Tax Calendar: Key Deadlines for the Remainder of 2017

Posted by on Apr 24, 2017 in Blog, General, Management, Tax Tips | 0 comments

Individual Tax Calendar: Key Deadlines for the Remainder of 2017

While April 15 (April 18 this year) is the main tax deadline on most individual taxpayers’ minds, there are other deadlines throughout the rest of the year that are important to be aware of. To help you make sure you don’t miss any important 2017 deadlines, here’s a look at when some key tax-related forms, payments and other actions are due. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply specifically to you. Please review the calendar and let us know if you have any questions about the...

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Bartering May Be Cash-Free, But It’s Not Tax-Free

Posted by on Apr 20, 2017 in Blog, General, Management, Tax Tips | 0 comments

Bartering May Be Cash-Free, But It’s Not Tax-Free

Bartering might seem like something that happened only in ancient times, but the it’s still common today. The general definition of bartering remains the same: the exchange of goods and services without the exchange of money. Because no cash changes hands in a typical barter transaction, it’s easy to forget about taxes. But, as one might expect, you can’t cut Uncle Sam out of the deal. A taxing transaction The IRS generally treats a barter exchange similarly to a transaction involving cash. You must report the fair market value of the...

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What Are the Most Tax-Advantaged Ways to Reimburse Employees’ Education Expenses?

Posted by on Apr 13, 2017 in Blog, General, Management, Tax Tips | 0 comments

What Are the Most Tax-Advantaged Ways to Reimburse Employees’ Education Expenses?

Reimbursing employees for education expenses can strengthen the capabilities of your staff as well as help you retain them. Additionally, you and your employees may be able to save valuable tax dollars. But you have to follow IRS rules. Here are a couple of options for maximizing tax savings. A fringe benefit Qualifying reimbursements and direct payments of job-related education costs are excludable from employees’ wages as working condition fringe benefits. This means employees don’t have to pay tax on them. Plus, you can deduct these costs...

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A Refresher On Tax-Related ACA Provisions Affecting Businesses

Posted by on Apr 10, 2017 in Blog, General, Management, Tax Tips | 0 comments

A Refresher On Tax-Related ACA Provisions Affecting Businesses

Now that the bill to repeal and replace the Affordable Care Act (ACA) has been withdrawn and it’s uncertain whether there will be any other health care reform legislation this year, now is a good time to review some of the tax-related ACA provisions affecting businesses: Small employer tax credit. Qualifying small employers can claim a credit to cover a portion of the cost of premiums paid to provide health insurance to employees. The maximum credit is 50% of premiums paid by the employer, provided it contributes at least 50% of the total...

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