Blog | WM. F. Horne & Company, PLLC

18Jul2017

Thinking about Converting Your Home Into a Rental?

 

rental

 

Article Highlights:

  • Home Sale Gain Exclusion
  • Home Sale Loss Rule
  • Mortgage Interest Deductions

When individuals buy new homes, they often consider turning their old homes into rentals rather than selling them. All too often, that decision is made without considering the tax implications. Converting a former residence into a rental may also happen when two individuals who each own a home get married or when individuals move to a new area but don’t want…

  • 18 Jul, 2017
  • Jacqueline Cran
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06Jul2017

Borrowing Money to Finance an Education?

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Article Highlights:

  • Home Equity Loan
  • Home Equity Interest Deduction
  • Alternative Minimum Tax
  • Above-the-line Interest Deduction
  • Qualified Expenses

If you are considering borrowing funds to finance your education or the education of your spouse or children, you may wish to take advantage of the available tax benefits.

If you itemize your deductions and have sufficient equity in your home, you might consider borrowing the needed cash from your home. Generally, homeowners can take $100,000 of equity debt on their…

  • 6 Jul, 2017
  • Jacqueline Cran
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29Jun2017

July 2017 Tax Due Dates

 

july 2017

 

July 2017 Individual Due Dates

 

July 1 – Time for a Mid-Year Tax Check Up

Time to review your 2017 year-to-date income and expenses to ensure estimated tax payments and withholding are adequate to avoid underpayment penalties.

July 10 – Report Tips to Employer

If you are an employee who works for tips and received more than $20 in tips during June, you are required to report them to your employer on IRS…

  • 29 Jun, 2017
  • Jacqueline Cran
  • 0 Comments
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22Jun2017

Job Search Expenses May Be Tax-Deductible

 

job search

Article Highlights:

  • Schedule A
  • Travel Expenses
  • Résumé Preparation
  • Job-Placement Services
  • Unemployment Income
  • Health Insurance

If you are looking for work, some of the expenses you incur may be tax-deductible, provided that you are looking for work within the same field. Unfortunately, expenses incurred when the job search is in a new field or a first job are not tax-deductible.

If you are an employee, job search expenses are deducted as miscellaneous itemized deductions on Schedule A. Thus,…

  • 22 Jun, 2017
  • Jacqueline Cran
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19Jun2017

The IRS Has Become More Liberal With College Expenses

college expenses

Article Highlights:

  • Computers
  • Internet Access
  • Qualified State Tuition (Sec. 529) Plans
  • American Opportunity Tax Credit
  • Required for Enrollment or Attendance

 

Computers and the Internet have become integral parts of education by providing access to online courses, learning and research. It is virtually impossible to be enrolled in postsecondary education without a computer, which is needed to complete written assignments, type reports, prepare theses and access the Internet.

Recent tax regulations have acknowledged the fact that computers,…

  • 19 Jun, 2017
  • Jacqueline Cran
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15Jun2017

Does Your Employee Misclassify You as an Independent Contractor Instead of as an Employee?

contractor vs employee

 

Article Highlights

  • Employee
  • Independent Contractor
  • Behavioral Control
  • Financial Control
  • Relationship
  • Request For IRS Determination
  • Self-Employment Tax

It is not uncommon for employers to misclassify employees as independent contractors, either to intentionally avoid their withholding and tax responsibilities or because they are not aware of the laws regarding the issue. If your employer reports your income on a Form 1099 (as opposed to a W-2), you are being treated as an independent contractor, not as an employee….

  • 15 Jun, 2017
  • Jacqueline Cran
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12Jun2017

Can You Deduct a Home Office? Is It Worth It?

 

home office

Article Highlights:

  • Qualifications
  • Employee Issues
  • Method Options
  • Income Limitations
  • Relocation

“Home office” is a term used to describe the tax deduction for the business use of your home, which may or may not be an office. It is often misunderstood and claimed by those who don’t qualify for it or not claimed to the taxpayer’s best advantage. Understanding the requirements, options, limitations, advantages and disadvantages will help you determine if you qualify for the deduction…

  • 12 Jun, 2017
  • Jacqueline Cran
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08Jun2017

Are You Ignoring the Household Employee Payroll Rules?

 

household employee

 

Article Highlights:

  • Household Employees
  • Tax Avoidance
  • Filing 1099s
  • Correct Procedures
  • W-2s, Payroll Taxes and Reporting
  • Overtime
  • Hourly Pay Or Salary
  • Separate Payrolls

If you hire a domestic worker to provide services in or around your home, you probably have a tax liability that you don’t know about – or one that you do know about but are ignoring. Either situation can come back to bite you. When the worker is your employee, your liability includes both withholding and…

  • 8 Jun, 2017
  • Jacqueline Cran
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05Jun2017

Odds of Being Targeted by the IRS for Audit

audit.blog

 

Article Highlights:

 

  • IRS Audit Focus
  • Data Book
  • Tax Revenues
  • Audits by Income
  • EITC Top Audit Target

If you, like others, dread the thought of being audited by the IRS, then you should know that the IRS, like any good business, concentrates its efforts where they produce the best results (revenue)! Thus, its audit selection process favors returns that claim the earned income tax credit (EITC), for which a lot of fraud is prevalent, as well as…

  • 5 Jun, 2017
  • Jacqueline Cran
  • 0 Comments
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02Jun2017

Deductions Eliminated Under Trump’s Tax Reform Proposal

 

tax reform

Article Highlights:

  • Deductions the Proposal Retains
  • Itemized Deductions the Proposal Eliminates
  • Other Deductions the Proposal Eliminates

One of President Trump’s key tax reforms is to eliminate all individual tax deductions except for those that incentivize home ownership, charitable contributions and retirement contributions. Although the administration’s one-page outline of the proposed tax reforms provides little detail, if all of the deductions except those noted are eliminated, the reform will impact both itemized deductions and…

  • 2 Jun, 2017
  • Jacqueline Cran
  • 0 Comments
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