Foreign Sweep Accounts – Protect Yourself from Costly Penalties

 

Do you have any bank accounts with a “foreign sweep” feature? If so, you’ll want to read on to ensure you’re not at risk for significant financial penalties related to failing to disclose/report foreign bank accounts.

What are sweep accounts?

Many banks offer an “overnight sweep” feature that sweeps excess funds in an account to another branch of the bank. The idea is that your funds never sleep – they earn both during the day and at night.

How do you know if your sweep feature requires foreign...

Read More »
0 Comments »

Ohio Tax Update

When most taxpayers sit down to do their taxes each year, it's usually with a bit of aggravation and disdain.  However, for Ohio residents, there will be a welcome surprise in the form of lower tax rates and some new tax deductions and credits.

Individuals – Lower Rates

With the signing of House Bill 59, income tax base amounts and rates have been reduced by 8.5% for 2013 and will be reduced another .5% in 2014, and an additional 1% in 2015.  Here are the new rates for 2013:

Ohio Taxable Income

Tax...

Read More »
0 Comments »

Is Significant Tax Reform on the Horizon in 2014?

On February 26, 2014, House Ways and Means Chairman Dave Camp (R-MI) released a draft “Tax Reform Act of 2014 that provides for significant changes in the U.S. tax system.  Chairman Camp indicated that he had three primary objectives in the reform proposal, including:  

  • Simplifying the Tax Code;
  • Lowering income tax rates for individuals, families and all businesses; and
  • Making the Tax Code fairer and more accountable.

Chairman Camp stated “Tax reform needs to be about strengthening the economy and...

Read More »
0 Comments »

Reducing the Headaches and Hassles of Buying and Selling Land

Developers, like everyone else, try to find ways to minimize their tax liability.  Developers will often attempt to use related parties (typically a Limited Liability Company (LLC) and an S corporation) to structure the sale of land in such a way to convert part of their appreciation from ordinary income to capital gain income.  In a recent court case, one development company tried to use this tax strategy and failed after the Court ruled in favor of the IRS.

Background

  • A group of individuals...
Read More »
0 Comments »

How to Maximize Personal Exemptions

New rules may affect 2013 returns

Remember those generous personal and dependency exemptions you have claimed in the past? Under new rules taking effect on 2013 federal income tax returns, exemptions are reduced for certain high-income taxpayers. However, depending on your circumstances, you may still be in line for a significant tax break.

Basic rules: For starters, every taxpayer is entitled to claim a personal exemption for himself or herself, plus an exemption for a spouse if you file a joint...

Read More »
0 Comments »

Interest Deductions: Four main categories of interest expenses

 

How do you separate interest expenses on your 2013 tax return? There are four main categories for taxpayers to consider. (Technically, there are several other types of “interest” in the tax law.) Here is how it breaks down.

  1. Personal interest: If an interest expense does not fall into one of the other three categories, it is generally treated as personal interest. Simply put, personal interest is nondeductible. However, there is a key exception for interest paid on student loans. In brief, you...
Read More »
0 Comments »

Federal Tax Law Changes and How They May Affect Your 2013 Taxes

From the American Taxpayer Relief Act to the Supreme Court's ruling on the Defense of Marriage Act to the Affordable Care Act, 2013 saw the enactment of major tax law changes.  It was a busy year in Washington that left many taxpayers overwhelmed.

We strive to keep you up-to-date with tax developments as they occur and now that 2013 is over, we're pleased to offer Special Report: 2013 Tax Year-In-Review, a comprehensive overview of the regulations and how they may affect your tax filing.

Featurin...

Read More »
0 Comments »

Work Opportunity Tax Credit: Why You Should Hire Veterans Before 2014

Do you plan to hire new employees before the New Year? You may want to consider hiring a veteran. Not only will you help our servicemen and women find employment, but your business may be eligible for the Federal Work Opportunity Tax Credit (WOTC).  WOTC—a tax credit available to employers for hiring individuals who have consistently faced significant barriers to employment—is worth thousands of dollars per eligible new hire.

Below are few helpful tips to consider:

  1. Hiring Deadline.  Employers...
Read More »
0 Comments »

Tax Laws for 2013: IRS Issues Favorable Guidance on Self-Rental

In late November, the IRS issued long-awaited final regulations (TD 9644) on the Net Investment Income Tax. Beginning in 2013, this tax generally applies to individual income tax returns with income greater than $200,000 and trust and estate income tax returns returns with income greater than $12,000.

In general, the Net Investment Income tax is a 3.8% tax on the lesser of

  1. Net investment income, or
  2. The excess of the taxpayer’s modified adjusted gross income (MAGI) above $200,000 for singles (S) or...
Read More »
0 Comments »

Internal Revenue Service Repair Regulations: What Does That Mean for You?

On September 13, 2013, the IRS issued the long awaited final regulations that govern how repair and maintenance expenditures should be treated. These final regulations replace the five different sets of temporary regulations that have been issued over the past nine years and are effective for tax years beginning on or after January 1, 2014.  The regulations provide rules on how repair and maintenance expenditures should be treated (capitalized vs. expensed).

Building Owners

Even though these final...

Read More »
0 Comments »