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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.

3 Strategies For Tax-smart Giving

Posted by on Aug 25, 2016 in Blog, General, Management, Tax Tips | Comments Off on 3 Strategies For Tax-smart Giving

3 Strategies For Tax-smart Giving

Giving away assets during your life will help reduce the size of your taxable estate, which is beneficial if you have a large estate that could be subject to estate taxes. For 2016, the lifetime gift and estate tax exemption is $5.45 million (twice that for married couples with proper estate planning strategies in place). Even if your estate tax isn’t large enough for estate taxes to be a concern, there are other income tax consequences to consider. It’s also possible the estate tax exemption could be reduced or your wealth could increase...

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Accelerate Depreciation Deductions With A Cost Segregation Study

Posted by on Aug 22, 2016 in Blog, General, Management, Tax Tips | Comments Off on Accelerate Depreciation Deductions With A Cost Segregation Study

Accelerate Depreciation Deductions With A Cost Segregation Study

Business owners could see substantial tax savings faster by conducting cost segregation studies. These studies identify property components and their costs, allowing you to maximize current depreciation deductions by using shorter lives and speeding up depreciation rates available for the qualifying parts of the property. Depreciation rules Buildings generally are depreciated over 27.5 years (residential rental) or 39 years (commercial) using the straight-line method. This recovery period applies to real property, which includes buildings as...

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Don’t Roll The Dice With Your Taxes If You Gamble This Year

Posted by on Aug 18, 2016 in Blog, General, Management, Tax Tips | Comments Off on Don’t Roll The Dice With Your Taxes If You Gamble This Year

Don’t Roll The Dice With Your Taxes If You Gamble This Year

For anyone who takes a spin at roulette, cries out “Bingo!” or engages in other wagering activities, it’s important to be familiar with the applicable tax rules. If you’re not, you could be putting yourself at risk for interest or penalties. You could also be missing out on tax-saving opportunities. When You Win You must report 100% of your wagering winnings as taxable income. The value of complimentary goodies (“comps”) provided by gambling establishments must also be included in taxable income because comps are considered gambling winnings....

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Should You Make A “Charitable IRA Rollover” In 2016?

Posted by on Aug 15, 2016 in Blog, General, Management, Tax Tips | Comments Off on Should You Make A “Charitable IRA Rollover” In 2016?

Should You Make A “Charitable IRA Rollover” In 2016?

Last year a break valued by many charitable retirees was made permanent: the charitable IRA rollover. If you’re age 70½ or older, you can make direct contributions ( up to $100,000 annually) from your IRA to qualified charitable organizations without owing any income tax on the distributions. Satisfy your Required Minimum Distributions A charitable IRA rollover can be used to satisfy required minimum distributions (RMDs). You must begin to take annual RMDs from your traditional IRAs in the year in which you reach age 70½. Failure to do so...

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3 Mutual Fund Tax Hazards To Watch Out For

Posted by on Aug 10, 2016 in Blog, General, Management, Tax Tips | Comments Off on 3 Mutual Fund Tax Hazards To Watch Out For

3 Mutual Fund Tax Hazards To Watch Out For

Investing in mutual funds is an easy way to diversify a portfolio. This is one reason why they’re commonly found in retirement plans such as IRAs and 401(k)s. But if you hold these funds in taxable accounts, or are considering such investments, beware of these three tax hazards: High turnover rates. Mutual funds with high turnover rates can create income that’s taxed at ordinary-income rates. Choosing funds that provide primarily long-term gains can save you more tax dollars because of the lower long-term rates. Earnings reinvestments....

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Will Your Business Have A Net Operating Loss? Make The Most Of It

Posted by on Aug 8, 2016 in Blog, General, Management, Tax Tips | Comments Off on Will Your Business Have A Net Operating Loss? Make The Most Of It

Will Your Business Have A Net Operating Loss? Make The Most Of It

When the deductible expenses of a business exceed its income, a net operating loss (NOL) generally occurs. If you’re planning ahead or filing your income tax return after an extension request and you find that your business has a qualifying NOL, there’s some good news: The loss may generate some tax benefits. Carrying back or forward The specific rules and exact computations to figure an NOL can be complex. But when a business incurs a qualifying NOL, the loss can be carried back up to two years, and any remaining amount can be carried...

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To Deduct Business Losses, You May Have To Prove “Material Participation”

Posted by on Aug 5, 2016 in Blog, General, Management, Tax Tips | Comments Off on To Deduct Business Losses, You May Have To Prove “Material Participation”

To Deduct Business Losses, You May Have To Prove “Material Participation”

You can only deduct losses from an S corporation, partnership or LLC if you “materially participate” in the business. If you don’t, your losses are generally considered “passive” and can only be used to offset income from other passive activities. Any excess passive loss is suspended and must be carried forward to future years. Material participation is determined by the amount of time you spend in a business activity. For most business owners, the issue rarely arises — you probably spend more than 40 hours working on your enterprise....

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Still Time For Homeowners To Save With Green Tax Credits

Posted by on Aug 2, 2016 in Blog, General, Management, Tax Tips | Comments Off on Still Time For Homeowners To Save With Green Tax Credits

Still Time For Homeowners To Save With Green Tax Credits

The income tax credit for certain energy-efficient home improvements and equipment purchases was extended through 2016 by the PATH (Protecting Americans from Tax Hikes) Act of 2015. So, you still have time to save both energy and taxes by making these eco-friendly investments. What qualifies? The credit is for expenses related to your principal residence. It equals 10% of certain qualified improvement expenses plus 100% of certain other qualified equipment expenses, subject to a maximum overall credit of $500, which is reduced by any credits...

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Lower Gas Costs = Lower Business Driving Tax Deductions

Posted by on Jul 25, 2016 in Blog, General, Management, Tax Tips | Comments Off on Lower Gas Costs = Lower Business Driving Tax Deductions

Lower Gas Costs = Lower Business Driving Tax Deductions

This year, the optional standard mileage rate used to calculate the deductible costs of operating an automobile for business went down. Why? Since gas prices are lower than last year, the cost of driving is less and therefore so is the deduction. This year’s rate Beginning on January 1, 2016, the standard mileage rate for the business use of a car (van, pickup or panel truck) is 54 cents per mile. For 2015, the rate was 57.5 cents per mile. The cents-per-mile rate is adjusted annually by the IRS. It is based on an annual study commissioned by...

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Can You Claim A Home Office Deduction For Business Use?

Posted by on Jul 25, 2016 in Blog, General, Management, Tax Tips | Comments Off on Can You Claim A Home Office Deduction For Business Use?

Can You Claim A Home Office Deduction For Business Use?

You might be able to claim a deduction for the business use of a home office. If you qualify, you can deduct a portion of expenses, including rent or mortgage interest, depreciation, utilities, insurance, and repairs. The exact amount you can deduct depends on how much of your home is used for business. Basic rules for claiming deductions The part of your home claimed for business use must be used: Exclusively and regularly as your principal place of business, As a place where you meet or deal with patients, clients, or customers in the...

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