Weekly Tax Brief

Tangible property safe harbors help maximize deductions

Details: Published: 28 February 2017 28 February 2017

If last year your business made repairs to tangible property, such as buildings, machinery, equipment or vehicles, you may be eligible for a valuable deduction on your 2016 income tax return. But you must make sure they were truly “repairs,” and not actually “improvements.”

Deduct all of the mileage you’re entitled to — but not more

Details: Published: 21 February 2017 21 February 2017

Rather than keeping track of the actual cost of operating a vehicle, employees and self-employed taxpayers can use a standard mileage rate to compute their deduction related to using a vehicle for business. But you might also be able to deduct miles driven for other purposes, including medical, moving and charitable purposes.

Do you need to file a 2016 gift tax return by April 18?

Details: Published: 14 February 2017 14 February 2017

Last year you may have made significant gifts to your children, grandchildren or other heirs as part of your estate planning strategy. Or perhaps you just wanted to provide loved ones with some helpful financial support. Regardless of the reason for making a gift, it’s important to know under what circumstances you’re required to file a gift tax return.

Some transfers require a return even if you don’t owe tax. And sometimes it’s desirable to file a return even if it isn’t required.

What you need to know about the tax treatment of ISOs

Details: Published: 08 February 2017 08 February 2017

Incentive stock options allow you to buy company stock in the future at a fixed price equal to or greater than the stock’s fair market value on the grant date. If the stock appreciates, you can buy shares at a price below what they’re then trading for. However, complex tax rules apply to this type of compensation.

The “manufacturers’ deduction” isn’t just for manufacturers

Details: Published: 02 February 2017 02 February 2017

The Section 199 deduction is intended to encourage domestic manufacturing. In fact, it’s often referred to as the “manufacturers’ deduction.” But this potentially valuable tax break can be used by many other types of businesses besides manufacturing companies.

Warning: QuickBooks Phishing Scam

Details: Published: 28 January 2017 28 January 2017

The Better Business Bureau has issued a warning about a new phishing scam targeting small businesses. The message looks like an email alert from accounting software QuickBooks with the subject line “QuickBooks Support: Change Request.”

The email is worded to “confirm” that you have changed your business name with Intuit, QuickBooks’ manufacturer. Though you haven’t make such a request, the email contains a link to cancel. DO NOT click this “Cancel” link. It is used as bait. When clicked, the link will download malware onto your device, which scammers use to capture passwords or hunt for sensitive information on your machine. This can ultimately open you up to identity theft.

Deduction for state and local sales tax benefits some, but not all, taxpayers

Details: Published: 19 January 2017 19 January 2017

The break allowing taxpayers to take an itemized deduction for state and local sales taxes in lieu of state and local income taxes was made “permanent” a little over a year ago. This break can be valuable to those residing in states with no or low income taxes or who purchase major items, such as a car or boat.

2017 Q1 tax calendar: Key deadlines for businesses and other employers

Details: Published: 04 January 2017 04 January 2017

Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2017. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements.

Want to save for education? Make 2016 ESA contributions by December 31

Details: Published: 20 December 2016 20 December 2016

There are many ways to save for a child’s or grandchild’s education. But one has annual contribution limits, and if you don’t make a 2016 contribution by December 31, the opportunity will be lost forever. We’re talking about Coverdell Education Savings Accounts (ESAs).

Ensure your year-end donations will be deductible on your 2016 return

Details: Published: 08 December 2016 08 December 2016

Donations to qualified charities are generally fully deductible, and they may be the easiest deductible expense to time to your tax advantage. After all, you control exactly when and how much you give. To ensure your donations will be deductible on your 2016 return, you must make them by year end to qualified charities.

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