February Newsletter

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CONSIDER SEPARATING REAL ESTATE ASSETS FROM YOUR BUSINESS

Many companies choose not to combine real estate and other assets into a single entity. There are justifiable legal reasons for doing so, but there are also potentially beneficial tax reasons for holding real estate in a separate entity. This article delves into the tax side, discussing how to avoid mistakes and maximize benefits. A sidebar looks at the advantages of separate entities for family businesses.

 

FACING THE TAX CHALLENGES OF SELF-EMPLOYMENT

Today’s technology makes self-employment easier than ever. But the self-employed face some distinctive challenges when it comes to their taxes. This article suggests some important steps to take, including learning about liability and claiming the home office deduction.

 

4 MYTHS ABOUT MANAGING YOUR DEBT

Debt is a reality for many Americans. Underestimating or ignoring one’s obligations can delay or even prevent you from accomplishing many financial goals. This article discusses four myths about debt management, including whether it’s wise to shut down all credit cards and the sometimes pragmatic utility of bankruptcy.

 

PHASEOUTS AND REDUCTIONS: A TAX-FILING REMINDER

Some years, taxpayers can’t reap the full value of tax breaks they’ve claimed in the past. This brief article discusses the personal exemption phaseout and itemized deduction reduction, which can affect those whose AGIs have exceeded the applicable threshold

 

 

New Due Dates Could Ease Partnership Frustrations in 2017 Filing Season

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Have you been frustrated in the past due to complications in finalizing your return because scattered filing dates made it difficult to gather the information you needed when you needed it? In earlier tax years, that is particularly the case for individuals or organizations that were partners in partnerships or other “pass-through entities.” There should be relief in the coming tax season, however, because of new federal legislation that better aligns due dates. Also, many states have changed their return filing due dates so that they coincide with federal filing dates. For example, Schedule K-1s are now due March 15 (or September 15 for extensions), but other forms are also affected. The new dates can make it easier to include information reported on a K-1 in a personal or business return.

These changes were long advocated by the accounting profession because we’re always looking out for the best interests of our clients and the public. Be sure to contact us with any questions on what the new dates might mean for your return or about any of your financial concerns.

Stop Tax Identity Theft in Its Tracks

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Imagine after sending in your annual tax return, you receive a notice from the Internal Revenue Service saying that another return has already been filed using your name and Social Security number—and claiming a refund. Sound impossible? It can happen if you become one of a growing number of victims of tax return identity theft. According to one estimate, tax-related identity theft cases have soared more than 650% since 2008. At the least, this crime can lead to a delay in your refund, but the consequences may be much more severe. Also, you may face a larger problem with identity theft if the scammer is also running up credit card debt or taking out loans in your name.

To avoid becoming a victim, we recommend steps such as safeguarding your Social Security number and other financial information, keeping an eye on changes to your credit ratings and taking precautions with electronic transfers of confidential information. Be sure to contact us if you believe you have been a victim of identity theft or would like advice on the best ways to secure your financial information.

IRS refund issue dates

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Please remember that the PATH Act put restrictions on refunds from refundable credits like the Earned Income Tax Credit. The restrictions prohibit refunds being issued before 2/15, which based on this chart means those refunds won’t be issued until at least February 17, and possibly not until February 24.