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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.

Should Your Business Use Per Diem Rates For Travel Reimbursement?

Posted by on Sep 21, 2017 in Blog, General, Management, Tax Tips | 0 comments

Should Your Business Use Per Diem Rates For Travel Reimbursement?

Travel per diem rates have been updated and will go into effect on October 1st. To simplify record keeping, they can be used for reimbursement of ordinary and normal business expenses incurred while employees travel away from home. Per diem advantages As long as employees properly account for their business-travel expenses, reimbursements are generally tax-free to the employees and deductible by the employer. But keeping track of actual costs can be a headache. With the per diem rates, employees just need to document the time, place and...

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Save More for College Through the Tax Advantages of a 529 Savings Plan

Posted by on Sep 14, 2017 in Blog, General, Management, Tax Tips | 0 comments

Save More for College Through the Tax Advantages of a 529 Savings Plan

With kids back in school, it’s a good time for parents (and grandparents) to think about college funding. An option that can be especially beneficial, if the children in question still have many years until they’ll be starting their higher education, is a Section 529 plan. Tax-deferred compounding 529 plans are typically state-sponsored, and the savings-plan option offers an opportunity to potentially build up a significant college nest egg because of tax-deferred compounding. These plans can be particularly powerful if contributions begin...

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Tax Planning Critical When Buying a Business

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

Tax Planning Critical When Buying a Business

When you acquire a company, your to-do list is long. This means you can’t devote all of your time to the deal’s potential tax implications. However, neglecting tax issues during the negotiation process, could lead to serious negative consequences. To improve the odds of a successful acquisition, it’s important to devote resources to tax planning before your deal closes. Complacency can be costly During deal negotiations, you and the seller should discuss such issues as whether and how much each party can deduct their transaction costs and how...

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Watch Out for Potential Tax Pitfalls of Donating Real Estate to Charity

Posted by on Sep 7, 2017 in Blog, General, Management, Tax Tips | 0 comments

Watch Out for Potential Tax Pitfalls of Donating Real Estate to Charity

Charitable giving lets you to help an organization you care about and, in most cases, enjoy a valuable income tax deduction. If you’re considering a large gift, a noncash donation such as appreciated real estate can provide additional benefits. If you’ve held the property for more than one year, you will generally be able to deduct its full fair market value and avoid any capital gains tax you’d owe if you sold the property. However, there are potential tax pitfalls you must watch out for: Donation to a private foundation. While real estate...

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The ABCs of the Tax Deduction for Educator Expenses

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

The ABCs of the Tax Deduction for Educator Expenses

When it’s time to go back to school, much of the focus is on the students returning to the classroom — and on their parents buying them school supplies, backpacks, clothes, etc., for the new school year. But let’s not forget about the teachers. It’s common for teachers to pay for some classroom supplies out of pocket, and the tax code provides a special break that makes it a little easier for these educators to deduct some of their expenses. The miscellaneous itemized deduction Generally, your employee expenses are deductible if they’re...

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Larger Deduction Might Be Available to Businesses Providing Meals to Their Employees

Posted by on Aug 31, 2017 in Blog, General, Management, Tax Tips | 0 comments

Larger Deduction Might Be Available to Businesses Providing Meals to Their Employees

When businesses provide meals to their employees, generally their deduction is limited to 50%. But there are exceptions to the rule. One is if the meal qualifies as a de minimis fringe benefit under the Internal Revenue Code. A recent U.S. Tax Court ruling could ultimately mean more employer-provided meals will be 100% deductible under this exception. The court found that the Boston Bruins hockey team’s pregame meals to players and personnel at out-of-town hotels qualified as a de minimis fringe benefit. Qualifying requirements For meals to...

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Yes, You Can Undo a Roth IRA Conversion

Posted by on Aug 28, 2017 in Blog, General, Management, Tax Tips | 0 comments

Yes, You Can Undo a Roth IRA Conversion

Converting a traditional IRA to a Roth IRA can provide tax-free growth and the ability to withdraw funds tax-free in retirement. But what if you convert a traditional IRA — subject to income taxes on all earnings and deductible contributions — and then discover you would have been better off if you hadn’t converted it? Fortunately, it’s possible to undo a Roth IRA conversion, using a “recharacterization.” Reasons to recharacterize There are several possible reasons to undo a Roth IRA conversion. They might include: You lack sufficient liquid...

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How to Determine If You Need to Worry About Estate Taxes

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

How to Determine If You Need to Worry About Estate Taxes

Among the taxes being considered for repeal as part of tax reform legislation is the estate tax. This tax applies to transfers of wealth at death, hence why it’s commonly referred to as the “death tax.” Its sibling, the gift tax (also being considered for repeal) applies to transfers during life. Yet most taxpayers won’t face these taxes even if the taxes remain in place. Exclusions and exemptions For 2017, the lifetime gift and estate tax exemption is $5.49 million per taxpayer. (The exemption is annually indexed for inflation.) If your...

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Put Your Audit in Reverse to Save Sales and Use Tax

Posted by on Aug 21, 2017 in Blog, General, Management, Tax Tips | 0 comments

Put Your Audit in Reverse to Save Sales and Use Tax

It’s a good bet your state tax authorities will let you know if you haven’t paid enough sales and use taxes, but what are the odds that you’ll be notified if you’ve paid too much? The chances are slim — so slim that many businesses use reverse audits to find overpayments so they can seek refunds. Take all of your exemptions In most states, businesses are exempt from sales tax on equipment used in manufacturing or recycling, and many states don’t require them to pay taxes on the utilities and chemicals used in these processes, either. In some...

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Will Congress Revive Expired Tax Breaks?

Posted by on Aug 17, 2017 in Blog, General, Management, Tax Tips | 0 comments

Will Congress Revive Expired Tax Breaks?

Most of the talk about possible tax legislation this year has focused on either wide-sweeping tax reform or taxes that are part of the Affordable Care Act. But there are a few other potential tax developments for individuals to keep an eye on. Back in December of 2015, Congress passed the PATH Act, which made a multitude of tax breaks permanent. However, there were a few valuable breaks for individuals that it extended only through 2016. The question now is whether or not Congress will extend them for 2017. The education break One tax break...

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