January 27, 2011
Colorado Now Assessing Sales Tax of 1.4% on Prepaid Wireless Telecommunication Services
Hmmm...
News - John R. Dundon II, Enrolled Agent
368
paged,page-template,page-template-blog-large-image-simple,page-template-blog-large-image-simple-php,page,page-id-368,paged-56,page-paged-56,bridge-core-3.0.1,qodef-qi--touch,qi-addons-for-elementor-1.5.5,qode-page-transition-enabled,ajax_fade,page_not_loaded,,no_animation_on_touch,qode_grid_1300,footer_responsive_adv,qode-content-sidebar-responsive,qode-theme-ver-29.2,qode-theme-bridge,qode_header_in_grid,wpb-js-composer js-comp-ver-6.10.0,vc_responsive,elementor-default,elementor-kit-269
News
January 26, 2011
Forgiven Debt Exempt From Income Requires Tax Attribute Consideration IRS Form 982
If you are forgiven debt and that forgiven debt is not considered income then you should prepare and file IRS Form 982 - Reduction of Tax Attributes Due to Discharge of Indebtedness. Generally, the amount by which you benefit from the discharge of indebtedness is included in your gross income....
January 25, 2011
How to Report Net Operating Loss (NOL) Carry Forward on an IRS Form 1040
If you carry forward your NOL to a tax year after the NOL year, list your NOL deduction as a negative figure on the Other income line of Form 1040 or Form 1040NR (line 21 for 2009). Estates and trusts include an NOL deduction on...
January 24, 2011
What is Self Employment Income
Some kinds of income may or may not be self-employment income. The source of your income and your involvement in the activity from which your income is received will determine whether it is self-employment income. INTEREST - Interest is not self-employment income unless you receive it...
January 21, 2011
IRS Examination Techniques for Cash based business
Since many businesses in industry are cash oriented, have weak internal controls, lack an audit trail, and have inadequate books and records, the examiner’s audit should focus on probing for unreported income. It is the responsibility of the business owner to maintain the documents needed...
January 21, 2011
Estate Tax Planning Opportunities
Being able to make transfers of up to $5 million ($10 million per couple) without having to pay gift taxes allows for planning opportunities that, combined with leveraging strategies, can transfer huge amounts of wealth. These include: Simple Gifts - Being able to give up to...
January 19, 2011
American Opportunity and Lifetime Learning Tax Credits
Two federal tax credits available to help you offset the costs of higher education for yourself or your dependents. To qualify for either credit, you must pay postsecondary tuition and fees for yourself, your spouse or your dependent. The credit may be claimed by the...
January 18, 2011
Estate, Gift and Generation Skipping Transfer Tax
For 2011 and 2012, the gift, estate and GST tax exemptions are unified again, with the exemption set at $5 million and the tax rate at 35%. The $5 million exclusion is indexed for inflation beginning in 2012. Remember these changes are effective only for the next...
January 16, 2011
Capital Equipment Expense example – Bonus Depreciation
If in December 2010 you purchased and placed in service a new piece of capital equipment to use in your business - say for example a farmer buys a new tractor and placed it in service in his farming business. The tractor cost $300,000. The...
January 14, 2011
Tax Filing Status
The first step to filing your federal income tax return is to determine which filing status to use. Your filing status is used to determine your filing requirements, standard deduction, eligibility for certain credits and deductions, and your correct tax. There are five filing statuses:...