Filing Season is Here – Be Safe – File an Extension Request Today

Tax day is upon us – remember to at least get you application for automatic extension request electronically filed or post marked today using IRS Form 4868 Keep in mind this extension request is for additional TIME TO FILE the income tax forms.  It is NOT a request for an extension of TIME TO PAY income taxes due. Tax…

Details

2017 Vehicle Depreciation Limitations IRS Rev Proc 2017-29

According to IRS Rev Proc 2017-29 (assuming IRC 168(k) applies) 1st year magic numbers are: $11,160 for passenger autos $11,560 for Trucks and Vans The rev proc also details lease inclusion amounts. Be sure to understand whether additional first year depreciation deductions apply under Internal Revenue Code Section 168(k) We all love our bonus depreciation! The principal…

Details

Does Your Business Need and Income Tax Filing Extension? Business Partnership and S Corp Income Tax Forms Due Next Week!

The Business and Partnership Tax deadline is coming up fast, Wednesday March 15th 2017 Don’t sweat it. File IRS Form 7004 and apply for Automatic Extension of Time to File Certain Business Income Tax forms. If you happen to be compelled feel welcome to check out the instructions for IRS Form 7004. If you need help…

Details

How much can you deduct for the gently used goods donated to charity?

Without a doubt one of the best ways for us middle-class folks to reduce our income tax burden is to donate charitably with intent. Most of my clients find themselves pleasantly surprised at the tax benefits received when they go through the exercise of donating gently used household items to charity. The IRS allows you…

Details

Business Entity Selection and the Tax Consequences of Converting

For this post Brandon Rains, founder of the Rains Laws Firm and an expert on business formation espouses his observations about business structure changes and I address the income tax reporting requirements of those changes therein. Generally speaking there are five choices when it comes to business structure and income reporting requirements: Sole Proprietorship (IRS Form…

Details

Should you keep a spreadsheet on the differences between the AAA and retained earnings from year to year?

U.S. Business Taxpayers reporting income using IRS Form 1120S who like to drill down into the tax forms my team prepares usually tend to get a little freaky over the Accumulated Adjustment Account (AAA) reported on Schedule M-2, specifically why the entry doesn’t tie out to what their books and records show for retained earnings. Rightfully…

Details

IRS Form 1099-misc Due Date Approaching – Facts and Misconceptions

As many of us who hang our own shingle are painfully aware, IRS Form 1099-misc is due NEXT WEEK. YIKES! I’m still shaking off the holidays. The failure to timely file this ‘informational return’ has gone up this year. So you really do NOT want to miss this deadline, particularly if you are a contractor…

Details

Income 54: Nonresident Partners and Shareholders of Partnerships and S Corporations

The Colorado Department of Revenue has finally revised its guidelines in FYI Income 54 regarding people who do not live in Colorado but are partners and/or shareholders of partnerships and/or S corporations in Colorado, ensuring that pass-through entities pay Colorado income tax on their Colorado-source income. This #EnrolledAgent says #AboutTime! According to the revised guidelines, this requirement…

Details