For 2013 you get 56.5¢ for each business mile (keep your logs daily) . While employees can’t deduct driving to work, look at visits to clients, extra meetings, errands or shopping for supplies. Business owners – especially child care providers – have the same and more. To learn more, click here.
To qualify for this exception to the exclusive use rule, you must meet both of the following requirements. To read the post, click here.
Source: Tax News & Tips, Year End 2013
According to Publication 587, Cat. No. 15154T : January 5, 2013 – yes it can be, but whether it qualifies as the principal place of business for two or more businesses is evaluated by a set of criteria:
Wondering why you got a letter from the IRS? Could it be your mileage log? The IRS Is a stickler for details when it comes to mileage logs. Did you make sure that your mileage log reflected the day-to-day use and associated expenses for your vehicle(s)? Read our blog on “What is the most common trip wire to trigger an audit?”
In our last “tax move” post, we suggested taxpayers look at all the options they have for lowering their tax bill due in 2014. Here are some more possibilities:
January house payment – Prepaying your mortgage will give you 12 months of deductible interest. The same for a vacation home. Continue reading
IF YOU WANT TO GET CREDIT FOR CHILD and DEPENDENT CARE, THE IRS NEEDS TO KNOW… If you paid someone to care for your child, spouse, or dependent last year, you may be able to claim the Child and Dependent Care Credit on your federal income tax return.
Below are 10 things the IRS wants you to know about claiming a credit for child and dependent care expenses. Continue reading
TAX MOVES TO MAKE BEFORE CHRISTMAS.December 31 is approaching quickly – and there are some things you can do to lower your tax bill. We encourage our clients to come in for a review, especially if there are life-situation changes. Did they marry or divorce? Is there are new child? Is there unscheduled income, or benefits. We want to look at that before the close of the year.
As part of our updates on the laws that are changing, we are sharing valuable articles for your convenience.
This article is the first of two we will bring you from one of MarketWatch of the Wall Street Journal.
Did you know you can save taxes when you rent to relatives?Want renters you know, trust, like and just happen to be related? No problem. In fact, it is actually a pretty good idea.
According to the Bradford Tax Institute, renting is still a business agreement – even if your tenant is your college-age child or your retired in-laws. As with every business agreement, this rental requires a clear understanding of what is and isn’t permitted by law. So set down the ground rules, then you can relax.
Here’s a good tip to remember when renting to relatives (it will help you escape the rental triple whammy): Charge a well-documented and market-supported fair rent to your relatives.
That way, your rental property will not get misconstrued as a second home.
Here are a few ways to prove the rent you charge is fair:
Source: Tax Reduction Letter.
A U.S. District Judge has ordered Instant Tax Service and Tax Tree, LLC to cease and desist operations – immediately. Back in 2009, Instant Tax Service was heralded as one of the strong up and coming new businesses. Fraud, deception, lies, incorrect tax filing, all beg the question “How does this impact taxpayers who used this tax preparation service?” Pat Michael, EA and principal of US-TaxLaws says, “three years of back returns need to be reviewed immediately and fixed if necessary. In the past the IRS has had a field day auditing clients of ‘Questionable Preparers’, and there is no telling where this will lead.” Pat Michael is licensed in all 50 states, and has clients in 21 states. Pat further added, “On a more personal note – how many filers did not receive the correct refund they were entitled to because of bad tax preparation?”
In 2010 the IRS conducted random audits of returns prepared by Instant Tax Service franchises and found over half were non-compliant. Of the 24,000 returns, prepared by 5 franchisees, an estimated tax loss to the government from those franchisees alone exceeded $16 million in 2011, and we all know the government does not like to lose revenue. If you or someone you know has used Instant Tax Service, now is the time to contact US-TaxLaws at 619-589-8680 and speak with a tax professional who can help you. To learn more about Enrolled Agents, go to https://us-taxlaws.com/what-is-an-enrolled-agent.
Questions and Answers: 2013 Changes to the Itemized Deduction for Medical Expenses1. When do changes to the itemized deduction for medical expenses take effect?
The rules are changing if you plan to itemize medical deductions on your 2013 federal tax return that you will file in 2014. The change will not affect income tax returns for the 2012 taxable year that will be filed in 2013. Continue reading
Child Care Tax Specialists takes a look at the comprehensive landmark changes in the health care law and its impact. Read the full post here http://childcaretaxspecialists.com/how-will-the-affordable-care-act-impact-child-care-professionals/
2014 Inflation AdjustmentsIR-2013-87, Oct. 31, 2013
WASHINGTON — For tax year 2014, the Internal Revenue Service announced today annual inflation adjustments for more than 40 tax provisions, including the tax rate schedules, and other tax changes. Revenue Procedure 2013-35 provides details about these annual adjustments.
The tax items for tax year 2014 of greatest interest to most taxpayers include the following dollar amounts.
Details on these inflation adjustments and others not listed in this release can be found in Revenue Procedure 2013-35, which will be published in Internal Revenue Bulletin 2013-47 on Nov. 18, 2013.
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2014 Tax Season to Start Later Following Government Closure; IRS Sees Heavy Demand As Operations ResumeIR-2013-82, Oct. 22, 2013
WASHINGTON — The Internal Revenue Service today announced a delay of approximately one to two weeks to the start of the 2014 filing season to allow adequate time to program and test tax processing systems following the 16-day federal government closure. Continue reading
I’m sure you know that the earlier you start Social Security, the amount you receive differs greatly across 62-66-70, considered the “key ages”.
IR-2013-82, Oct. 22, 2013
WASHINGTON — The Internal Revenue Service today announced a delay of approximately one to two weeks to the start of the 2014 filing season to allow adequate time to program and test tax processing systems following the 16-day federal government closure. Continue reading
The new home page has three sections, which explain the tax benefits and responsibilities for individuals and families, employers, and other organizations, with links and information for each group. The site provides information about tax provisions that are in effect now and those that will go into effect in 2014 and beyond.
Topics include premium tax credits for individuals, new benefits and responsibilities for employers, and tax provisions for insurers, tax-exempt organizations and certain other business types.
Visitors to the new site will find information about the law and its provisions, legal guidance, the latest news, frequently asked questions and links to additional resources.
Several other federal agencies have a role in implementing the health care law, including the Department of Health and Human Services, which has primary responsibility. To help locate additional online resources from the Department of Health and Human Services, the Department of Labor and the Small Business Administration, the IRS has issued a new Web-based flyer – Healthcare Law Online Resources (Publication 5093).
Visit IRS.gov/aca for more information regarding the tax provisions of the Affordable Care Act.