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February/March Dates to Remember

February 15 All businesses. Give annual information statements (Forms 1099) to recipients of certain payments you made during 2018. Payments that are covered include (1) amounts paid in real estate transactions;(2) amounts paid in broker and barter exchange transactions; and (3) substitute payments and gross proceeds paid to attorneys. Employers. For Social Security, Medicare, withheld income tax, and... Read More

New Tax Law Enhances the Appeal of C Corporations

Many owners of private companies have been leery of operating as a regular C corporation. If you make that choice, you will be exposed to double-taxation of business income. First, a corporate income tax applies to the company’s profits. Second, any dividends that pass to you and other shareholders will be subject to personal income taxes. Making matters even more expensive, your C corporation... Read More

Making Stock Sales Less Taxing

Patient investors generally have prospered over the long term. Nevertheless, there are many reasons for selling stocks. Knowing the basics can help improve your tax position. Selling shares held in a taxable account will trigger taxable capital gains or losses, unless the sale proceeds are exactly the same as your basis ― your cost for tax purposes. If you are making a complete sale from an investment... Read More

Putting Stock Market Volatility in Perspective

As of this writing, in late 2018, the U.S. stock market has been extremely volatile. By the time you read this article, in February 2019, stocks may have stabilized, may have risen, or may have dropped dramatically. The last stunning market retreat, which made tumultuous news in late 2008, reached its bottom in February 2009. Future stock prices are unknown. That said, a knowledge of history may help you... Read More

Tax Implications on Cryptocurrency and Blockchain

Overview Cryptocurrency and blockchain are rapidly becoming a part of the U.S. landscape, but knowledge varies greatly on these topics and their applications. Below we will define what cryptocurrency and blockchain are, and how the IRS taxes cryptocurrency. Blockchain-a system in which a record of transactions made in bitcoin or another cryptocurrency are maintained across several computers that are linked... Read More

Self-Certification of Qualified Opportunity Funds

The Tax Cuts and Jobs Act introduced IRC §1400Z-2 Special Rules for Capital Gains Invested in Opportunity Zones. This section allows a taxpayer to elect to defer or exclude from gross income gain on the sale or exchange of any property to an unrelated party in the tax year of the sale or exchange if the gain is reinvested in a Qualified Oopportunity Zone (“QOZ”) within 180... Read More

January/February 2019 Dates to Remember

JANUARY January 15 Individuals. Make a payment of your estimated tax for 2018 if you did not pay your income tax for the year through withholding (or did not pay enough in tax that way). Use Form 1040-ES. This is the final installment date for 2018 estimated tax. However, you don’t have to make this payment if you file your 2018 return and pay any tax due by January 31, 2019. Employers. For Social... Read More

Five Point Meal Expense Test

The Tax Cuts and Jobs Act (TCJA) of 2017 generally disallowed all deductions for business entertainment, amusement, and recreation. However, the TCJA did not specifically turn thumbs up or down on the deductibility of business meal expenses. Example: Jim Morgan, who owns a roof cleaning business, takes a prospect to lunch and pays the $60 bill. Under the old law, Jim could take a $30 (50%) tax deduction. Is... Read More

Drive Cautiously...but Carry Ample Insurance!

January is a good time to review your insurance coverage. In particular, you should be sure you have adequate auto insurance if you own or lease one or more cars. Reviewing your current policy might not be simple. You likely will find terms such as bodily damage liability, property damage liability, collision, comprehensive, personal injury protection, and underinsured motorist coverage. Primarily, you should... Read More