The IRS recently issued Rev Proc 2014-61 which gives inflation adjusted figures for 2015. This includes a wide variety of information such as tax brackets, exemption amounts, EIC information etc. The complete document can be accessed here.
If you create art and try to sell it, can you deduct your related expenses? If your art is just a hobby then you can deduct expenses up to the amount of income, but if it is a business then all related expenses are deductible even if your expenses exceed your income. In a recent […]
Dave Ramsey is a bright guy who gives a lot of great advice about budgeting and personal finance, but he’s not a tax expert. Recently I heard a caller ask him whether he should incorporate and Dave made an incorrect statement regarding corporate taxes. Whether to incorporate your business is a question for your local […]
Yes they are and here’s an example. In the Swiggart case just decided in the US Tax Court, the IRS was required to pay reasonable attorneys fees for taxpayer’s lawyer because they failed to follow the Internal Revenue Code in failing to abate a penalty related to a math error. It’s a small victory but […]
Do you work from home? If so, can you deduct expenses such as utilities and rent payments as a business expense? There’s a new court case on this subject that has a couple of items of good news for taxpayers in this situation regarding the exclusive use test and whether a business deduction can be […]
I have seen a large increase in the number of clients and associates who have received phony emails and phone calls from persons claiming to be from the IRS and demanding personal information. Warning: do not give out personal information over the phone to a stranger no matter who they pretend to be. If you […]
Due to a recent reversal of their position found in IRS Notice 2014-7, payments for caring for a disabled individual are now non-taxable under IRC Section 131. This applies to all payments made through a qualified Medicaid waiver program. This applies to all such payments made on or after January 3, 2014. However, affected individuals […]
Here are the current IRS mileage rates. Beginning on Jan. 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 56 cents per mile for business miles driven 23.5 cents per mile driven for medical or moving purposes 14 cents per mile driven in service […]
Dealer vs. Investor Real Estate Sales By Scott E. West, EA Originally published in California Enrolled Agent, Sept/Oct Edition In this article, we will explore the differences between what constitutes real estate sold as investment property vs. real estate sold in the ordinary course of business. The former receives capital gain treatment. The latter is […]
It looks like the IRS is preparing to finally accept all forms for the 1040 series returns that were previously delayed due to late legislation. The projected date for accepting these returns is Sunday, March 3rd. So, those of you with rental properties or residential energy credits should be able to efile starting March 3rd.