Each year at this time, the IRS publishes its list of the “dirty dozen” tax scams. Among the dirty dozen are groups that masquerade as charitable organizations to attract donations from unsuspecting contributors. Before you write a check, be aware that fraudsters are out there soliciting on behalf of fake charities and that some so-called charities aren’t entirely honest about how they use contributions.
Just a reminder to those who have not yet filed their 2016 tax return that April 18, 2017 is the tax filing deadline. So, you either need to file your return and pay any taxes owed, or file for the automatic six-month extension and pay the tax you estimate to be due. The due date is normally April 15, but the 15th falls on a weekend and the next business day, April 17, is Emancipation Day, a legal holiday in Washington D.C., so the due date in 2017 is April 18.
Since it’s always best to be well-prepared when it comes to taxes, here are some of the new changes that you should be aware-of. As with anything to do with the government or taxes–if you really want to stay-top of this information, meet with your tax advisor and frequently check on IRS.gov.
Most taxpayers don’t intentionally incur tax penalties, but many who are penalized are simply not aware of the penalties or the impact they can have on their wallet. As tax season approaches, we should take a look at some of the more commonly encountered penalties and how they may be avoided.
With 2017 just around the corner, it is time to think about those last-minute year-end tax moves you can take to improve your tax situation for 2016. Year-end tax planning is probably something you will want to deal with before the holiday season crush arrives.
If you are considering converting your home to a rental, there are a number of tax issues you need to consider before making a final decision.
There is always a temptation to sell off assets that you’ve accumulated and take the money. However, that usually results in a tax bill. There may be a way to profit more from those assets by giving them away.
Small Business CPA Insight
You can only deduct losses from an S corporation, partnership or LLC if you “materially participate” in the business. If you don’t, your losses are generally “passive” and can only be used to offset income from other passive activities. Any excess passive loss is suspended and must be carried forward to future years.
If you are one of the many taxpayers who rents out a first or second home using rental agents or online rental services that match property owners with prospective renters, then some special tax rules may apply to you.