The IRS has released Announcement 2016-25 related to the Porter Ranch gas leak at the Aliso Canyon natural gas storage facility. The announcement declares that the IRS will not assess tax on reimbursements paid to, or on behalf of, the residents of affected area. The leak affected an entire community, causing widespread health issues and [...]
According to the Small Business Administration, one-third of small businesses fail during the first two years. Over half fail in the first five years. If you are starting a small business, it is important to take an honest look at yourself, your business idea, and the marketplace. Be aware of the common mistakes typically made by new businesses so you can avoid becoming a statistic.
If your child has been socking away those gift checks and trading stocks along with the E-Trade baby, you could have some reporting to do. Special rules apply to anyone who can be claimed as a dependent on another return. These rules apply regardless of whether you actually claim your child as a dependent; the [...]
The IRS describes virtual currency as a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value. Some virtual currency has an equivalent value in real currency, or acts as a substitute for real currency. This is referred to as “convertible virtual currency” since it can be digitally traded between users and can be purchased for or exchanged into U.S. dollars, Euros, and other real or virtual currencies.
If you have a child who works, consider encouraging the child to use some of the earnings for Roth IRA contributions. All that is required to make a Roth IRA contribution is having some earned income for the year. Age is irrelevant. Specifically, for 2014 your child can contribute up to the lesser of: (1) earned [...]
Summer is here and school is out, making this the most popular time of year for families to move. If you are moving because of your job, you may be able to deduct your moving expenses. In order to be deductible, you must meet both a distance test and a time test. 1. Distance Test [...]
There is still time to consider tax moves that could reduce your business taxes for 2013. Create a Retirement Plan It’s not too late to create a retirement plan for yourself and your employees if you have them. The plans can be simple to set up and maintain, such as a Simplified Employee Pension (SEP) [...]
A recent survey by the American Institute of CPAs found that while the majority of parents provide an allowance, they are uncomfortable talking to their kids about finances. Mom and Dad are more likely to talk about the importance of courtesy, healthy eating habits, and good grades than they are about managing money. Savvy parents [...]
If you are a parent getting divorced, you certainly have your plate full. Even during this hectic time, you want to find time to consider the tax implications of divorce. It is a good idea to consult your tax advisor during the negotiations to discuss how to take advantage of the dependency exemption for the [...]
The Supreme Court has now ruled that the Defense of Marriage Act (DOMA) is unconstitutional. What does this ruling really mean for same-sex couples? DOMA is the federal law that defined marriage as the legal union of one man and one woman. This meant that same-sex marriages were not recognized for federal purposes, including insurance benefits [...]