sacramentotaxhelp-blog

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Factor in state and local taxes when deciding where to live in retirement

Factor in state and local taxes when deciding where to live in retirement

Many Americans relocate to another state when they retire. If you’re thinking about such a move, state and local taxes should factor into your decision.  

Income, property and sales tax

Choosing a state that has no personal income tax may appear to be the best option. But that might not be the case once you consider property taxes and sales taxes.

For example, suppose you’ve narrowed your…

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2018 – 08/02 – How to Retire at 60

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2018 – 03/15 – Riding the stock market roller coaster Infographic: Are you concerned about market volatility in 2018?

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2018 – 07/13 – Are Frequent Flyer Miles Taxable?

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Retirement Plans Can Make Loans, Hardship Distributions to Victims of Hurricane Harvey

Retirement Plans Can Make Loans, Hardship Distributions to Victims of Hurricane Harvey

sacramento—The Internal Revenue Service today announced that 401(k)s and similar employer-sponsored retirement plans can make loans and hardship distributions to victims of Hurricane Harvey and members of their families. This is similar to relief provided last year to Louisiana flood victims and victims of Hurricane Matthew. Participants in 401(k) plans, employees of public schools and tax-exempt…

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An FLP can save tax in a family business succession

One of the biggest concerns for family business owners is succession planning — transferring ownership and control of the company to the next generation. Often, the best time tax-wise to start transferring ownership is long before the owner is ready to give up control of the business. A family limited partnership (FLP) can help owners enjoy the tax benefits of gradually transferring ownership yet…

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2018 – 01/25 – Why the IRS watches pump prices Infographic: What drives the standard mileage rate for business driving deductions?

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Accounting for pledges isn’t as simple as it might seem

  When a donor promises to make a contribution at a later date, your not-for-profit likely welcomes it. But such pledges can come with complicated accounting issues.

Conditional vs. unconditional

Let’s say a donor makes a pledge in April 2018 to contribute $10,000 in January 2019. You generally will create a pledge receivable and recognize the revenue for the April 2018 financial period. When the…

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Five Things to Remember about Hobby Income and Expenses

From scrapbooking to glass blowing, many Americans enjoy hobbies that are also a source of income. A taxpayer must report income on their tax return even if it is made from a hobby. However, the rules for how to report the income and expenses depend on whether the activity is a hobby or a business. There are special rules and limits for deductions taxpayers can claim for hobbies. Here are five…

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Eight Things to Do When an IRS Letter Arrives

The IRS mails millions of letters to taxpayers every year for many reasons. Here are seven simple suggestions on how individuals can handle a letter or notice from the IRS:

1. Don’t panic. Simply responding will take care of most IRS letters and notices.

2. Read the entire letter carefully. Most letters deal with a specific issue and provide specific instructions on what to do.

3. Compare it with…

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Four Things to Know about Taxes and Starting a Business

Four Things to Know about Taxes and Starting a Business

New business owners have tax-related things to do before launching their companies. IRS.gov has resources to help. Here are some items to consider before scheduling a ribbon-cutting event. Choose a business structure When starting a business, an owner must decide what type of entity it will be. This type determines which tax forms a business needs to file. Owners can learn about business…

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How to Know if the Knock on Your Door is Actually Someone from the IRS

How to Know if the Knock on Your Door is Actually Someone from the IRS

Every Halloween, children knock on doors pretending they are everything from superheroes to movie stars. Scammers, on the other hand, don’t leave their impersonations to one day. They can happen any time of the year.

People can avoid taking the bait and falling victim to a scam by knowing how and when the IRS does contact a taxpayer in person. This can help someone determine whether an individual…

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IRS Announces 2018 Pension Plan Limitations; 401(k) Contribution Limit Increases to $18,500 for 2018

IRS Announces 2018 Pension Plan Limitations; 401(k) Contribution Limit Increases to $18,500 for 2018

SACRAMENTO — The Internal Revenue Service today announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2018. The IRS today issued technical guidance detailing these items in Notice 2017-64. Highlights of Changes for 2018 The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the…

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Trump names Kautter as acting IRS commissioner

Trump names Kautter as acting IRS commissioner

Kautter formerly worked for the accounting firms RSM US and Ernst & Young and was confirmed for his position at the Treasury Department in August (see RSM’s Kautter confirmed in Treasury tax post). He will succeed John Koskinen when Koskinen’s term ends on November 12. The designation will take effect on November 13.

Treasury Secretary Steven Mnuchin issued a statement praising Kautter. “I look…

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2017 Form 1040 Schedule A Draft

2017 Form 1040 Schedule A Draft

[pdf-embedder url=”http://islip.net/wp-content/uploads/2017/10/f1040sa-dft.pdf” title=”f1040sa–dft”]

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2017 Form 1040 Draft

2017 Form 1040 Draft

[pdf-embedder url=”http://islip.net/wp-content/uploads/2017/10/f1040-dft.pdf” title=”f1040–dft”]

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Fake Insurance Tax Form Scam Aims at Stealing Data from Tax Pros, Clients

Fake Insurance Tax Form Scam Aims at Stealing Data from Tax Pros, Clients

SACRAMENTO – The Internal Revenue Service today alerted tax professionals and their clients to a fake insurance tax form scam that is being used to access annuity and life insurance accounts. Cybercriminals currently are combining several tactics to create a complex scheme through which both tax professionals and taxpayers have been victimized. There may be variations but here’s how one scam…