TAX TIP OF THE DAY... IRS has noticed Uber drivers
The IRS is taking notice of side income earned from Uber, TaskRabbit, Airbnb, Etsy, etc. According to a recent study, a significant portion of people getting paid for these activities are unaware of their related tax obligations. The IRS is planning an information campaign before the next tax filing season. SHARE WITH A FRIEND. http://www.baboiancpa.com/blog TAX TIP OF THE DAY... avoid Obamacare subsidy surprises
If you are receiving a subsidy to help pay for Obamacare health insurance, be sure to update the Marketplace about changes that could affect your subsidy. This includes changes to: your income, number of household members, marriage filing status. If you have an unreported change, you will be required to repay all or a portion of the excess subsidy paid to you. My office specializes in minimizing this repayment. SHARE WITH A FRIEND. http://www.baboiancpa.com/blog TAX TIP OF THE DAY... wrongful imprisonment compensation is tax-free
A 2015 tax act made all damages paid for wrongful imprisonment tax-free. Under prior law, such payments were taxable unless related to injuries incurred while in prison. SHARE WITH A FRIEND. http://www.baboiancpa.com/blog TAX TIP OF THE DAY... deduct volunteering for a charity or non-profit
There is no deduction for your time. But you can deduct mileage for charitable driving, parking and tolls. Deduct out-of-pocket costs such as postage, ingredients, cell phone & home internet. Get a written acknowledgement from the charity and save receipts. SHARE WITH A FRIEND. http://www.baboiancpa.com/blog TAX TIP OF THE DAY... IRS releases average charity deductions
If your household income is $50k-$99k: The average charity deductions were $3,147. If your household income is $100k-$200k: The average charity deductions were $4,130 . These figures are based upon 2014 tax return data for the entire US. You won't automatically be audited for having above-average deductions. But deduction averages are definitely used to help determine which taxpayers are audited by the IRS. SHARE WITH A FRIEND. http://www.baboiancpa.com/blog TAX TIP OF THE DAY... Feds crack one IRS impersonation phone scam
Treasury agents arrested five people in Miami on May 23, 2016 allegedly involved in schemes to impersonate IRS agents in telephone calls to obtain money from victims by falsely stating the victims owed taxes or fees, TIGTA said. The five, all Cuban nationals, according to news reports, were charged in federal complaints filed in Arkansas, Minnesota, and Texas with wire fraud and conspiracy to commit wire fraud. They defrauded more than 1,500 victims of nearly $2 million, often by threatening them with arrest if they did not wire money immediately, court documents stated. TIGTA estimates $36.5 million has been stolen from 6,400 victims in these and similar schemes. Source: http://www.journalofaccountancy.com/issues/2016/aug/tax-line-items.html#sthash.qP0bt5Xf.dpuf SHARE WITH A FRIEND. http://www.baboiancpa.com/blog TAX TIP OF THE DAY... sales tax change for graphic design business owners effective 08/01/16
Old law… if you emailed info but never followed up with a printed product or computer disc, the transaction was not taxable for sales tax purposes. New law… Effective August 1, 2016, licensees are now required to collect tax on electronically delivered videos, photographs, books, any other taxable printed material, apps, games, music, any audio service including satellite radio or canned software. This only applies to in-state customers. Taxable sales on these items made on or after August 1, 2016, must be included when filing sales tax returns. The date of sale is the date of the invoice or other similar document. SHARE WITH A FRIEND. http://www.baboiancpa.com/blog TAX TIP OF THE DAY... sales tax change for businesses owners
Effective 08/01/16, the early sales tax filing 1% discount is capped at $25 per month. In the past there was no limit to this discount. Monthly filers… this starts for sales in August 2016 Quarterly filers… this starts for 3rd quarter 2016 Semi-annual filers… this starts for July-Dec 2016 SHARE WITH A FRIEND. http://www.baboiancpa.com/blog TAX TIP OF THE DAY... Sale of home due to new baby
Generally, you have to own and use a home for at least 2 years before being eligible for a tax-free sale of your main home. However, the IRS allowed a couple who unexpectedly had a new baby to qualify for the tax break even though they had lived in their condo for less than the required 2 years due to the "unforeseen circumstances". Their otherwise taxable gain became tax-free! Illness and job changes also qualify for this leniency. SHARE WITH A FRIEND. http://www.baboiancpa.com/blog TAX TIP OF THE DAY... tax break for Olympians
Under present law, Olympic athletes must pay income tax on the value of any gold, silver and bronze medals received. A new proposal passed by the Senate would make these tax-free beginning with the upcoming Rio Olympic games. The bill still requires House approval and a presidential signature before becoming law. SHARE WITH A FRIEND. http://www.baboiancpa.com/blog |
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AuthorDavid S. Baboian, CPA Archives
February 2018
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