Tax Credits to Take Advantage Next Tax Season
If you are deciding whether or not to invest in a vehicle for your business, you should consider the tax implications. New Qualified Plug-in Electric Credit U.S. Code § 30D allows for a tax credit for plug-in electric vehicles drawing propulsion energy from a battery with five kilowatt hours or more of capacity. The credit amount is $7,500, which can be used to directly offset tax liability. The credit is nonrefundable but is not subject to AGI limitations. The credit is available to both personal and business use purchases. American Opportunity Tax Credit U.S. Code Title 26 § 25A allows…
FIDUCIARY ACCOUNTING RECORD MUST HAVES
When requested to prepare fiduciary accountings, I would first ask the following basic questions: What will the fiduciary accountings be used for? Are they going to be filed in court? What is the time period of account? The answer to questions 1 and 2, would determine the level of detail required of the accountings. There are formal and informal accountings, in which each has its pros and cons. I would recommend formal accountings just in case trust issues arise in the future. Formal accountings are usually in a format that meet the standards of probate court. Using the court accounting…
WHAT IS THE PURPOSE OF FIDUCIARY ACCOUNTINGS AND WHY IS ONE NEEDED?
A fiduciary is an individual in whom another has placed the utmost trust and confidence to manage and protect their property and/or money. The relationship is where one person has an obligation to act for another’s benefit and a way for the fiduciary to report the activities of the property they are managing is through fiduciary accountings. A common type of fiduciary is a trustee, the person that is responsible for overseeing a trust. For example, Homer is the trustee and he is in charge of the Maude Flanders Trust (Trust). The beneficiaries of her trust are her sons, Rod…
529 Day!
Happy 529 day! While many may be more familiar with other May days such as Memorial Day, Cinco de Mayo and Star Wars Day (May the Fourth be with you), parents and grandparents with children in their early years should be more aware of a lesser known May day, also known as 529 day (Section 529 plans). OVERVIEW A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs. Earnings in a 529 plan grow federal tax-free and will not be taxed when the money is taken out to pay for qualified educational expenses of…
TCJA impact on NOLs
One of the less publicized effects of the new tax law or TCJA (Tax Cuts and Jobs Act law) that passed late last year is the impact on net operating losses. The full effect of the changes won’t be felt until 2019 because only NOLs generated after 12-31-17 are subject to the new guidelines. Traditionally, any taxable losses generated in one year could be carried forward to fully shield any taxable income generated in subsequent years. The initial losses could be carried forward up 20 years (and optionally back two years) until such losses were fully absorbed. Under the pre-TCJA…
Credit Card Skimming
Credit Card Skimming All accountants would agree, one of the most important things for you to do, is protect your financial assets. Often we forget that we are only one swipe away from being scammed out of our money at the gas pump, restaurants, and ATM machines. “How is this possible?”, you may ask. A fraudulent tactic called credit card skimming allows this to happen. What is Credit Card Skimming? Not be confused with a the occupational fraud of skimming, which is taking money from your boss before it’s recorded in the books, credit card skimming is used by thieves…