Blog | WM. F. Horne & Company, PLLC

11Jun2018

Good and Bad News about the Home Office Tax Deduction

 

home office

 

Article Highlights:

  • Home Office
  • Qualifications
  • Actual-Expense Method
  • Simplified Method
  • Income Limitation
  • Employee Deduction

“Home office” is a type of tax deduction that applies to the business use of a home; the space itself may not actually be an office. This category also includes using part of a home for storing inventory (e.g., for a wholesale or retail business for which the home is the only fixed location); as a day care center; as a physical meeting…

  • 11 Jun, 2018
  • Jacqueline Cran
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07Jun2018

Big Changes to the Kiddie Tax

 

kiddietax

 

Article Highlight:

  • Prior Law
  • New Law
  • Earned Income
  • Unearned Income
  • Fiduciary Rates
  • Strategies

Years ago, to prevent parents from transferring their investment accounts into their children’s name to avoid taxes, Congress created what is referred to as the kiddie tax. This counteracted the strategy of taking income from the parents’ higher tax bracket and shifting it to their children’s lower tax bracket.

The kiddie tax plugged that tax loophole by taxing the child’s unearned income (income not from working)…

  • 7 Jun, 2018
  • Jacqueline Cran
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04Jun2018

Summer Employment for Your Child

 

Summer employment

Article Highlights

  • Higher Standard Deduction
  • IRA Options
  • Self-Employed Parent
  • Employing Your Child
  • Tax Benefits

Summer break is here, and your children may be looking for summer employment. With the passage of the most recent tax reform, the standard deduction for single individuals jumped from $6,350 in 2017 to $12,000 in 2018, meaning your child can now make up to $12,000 from working without paying any income tax on their earnings.

In addition, they can contribute the lesser…

  • 4 Jun, 2018
  • Jacqueline Cran
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01Jun2018

June 2018 Tax Due Dates

 

june

 

June 2018 Individual Due Dates

 

June 11 – Report Tips to Employer

If you are an employee who works for tips and received more than $20 in tips during May, you are required to report them to your employer on IRS Form 4070 no later than June 11. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are…

  • 1 Jun, 2018
  • Jacqueline Cran
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17May2018

Tax Reform Suspends the Tax Deduction for Employee Business Expenses

BusExpenses

Article Highlights:

 

  • Employee Business Expenses
  • Miscellaneous Itemized Deductions Subject to the 2% AGI Floor
  • Accountable Reimbursement Plan
  • Occupations Impacted

 

Not all provisions of the Tax Cuts and Jobs Act are beneficial to taxpayers. One notable negative provision is the suspension of the deduction for employee business expenses. Under prior law, taxpayers who were employees were able to deduct expenses related to their employment as a miscellaneous itemized deduction, to the extent the expenses exceeded 2%…

  • 17 May, 2018
  • Jacqueline Cran
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14May2018

2018 Tax Planning

preparing

Article Highlights:

  • Increase In Standard Deduction
  • Loss of Personal Exemptions
  • Changes to Itemized Deductions
  • Bunching Strategy
  • Employee Business Expenses
  • Business Expensing
  • 20% Flow-through Income Deduction
  • Change in Treatment of Alimony
  • Casualty Losses, Home Equity Interest and Moving No Longer Deductible

Tax reform has changed the way most taxpayers need to think about and plan for their taxes. It is no longer business as usual, and those who think it is are in for a rude awakening come tax time next…

  • 14 May, 2018
  • Jacqueline Cran
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10May2018

Solar Tax Credit: The Dark Side

solar energy

Article Highlights:

 

  • Solar Promotions
  • Solar Tax Credit
  • Nonrefundable Credit
  • Financing Costs
  • Solar Credit Phase-out
  • Leasing a Solar System

 

There are TV ads, telemarketing phone calls and sales people at your front door all promoting the benefits of solar power, and one of the key considerations and a frequently mentioned benefit is the 30% federal tax credit.

What isn’t included in the ads—and something most potential buyers are unaware of—is that the solar credit is a nonrefundable…

  • 10 May, 2018
  • Jacqueline Cran
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07May2018

I Didn’t File My Tax Return; Now What?

 

required to file

 

There are a lot of perfectly reasonable reasons for not having filed your income taxes. Many people who fail to file are new to the job market, and never having filed before may simply have been unaware of the requirement to do so. Some people know but are too overwhelmed with other life events, including illnesses, death, or job loss. Whatever your reason and whether you’ve only missed…

  • 7 May, 2018
  • Jacqueline Cran
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03May2018

Taxes and Divorce

 

 divorce tax issues

 

  • Filing Status
  • Claiming the Children as Dependents
  • Child Exemption
  • Head-of-Household Filing Status
  • Tuition Tax Credit
  • Child Care Tax Credit
  • Child Tax Credit
  • Medical Insurance
  • Earned-Income Tax Credit
  • Alimony

If you are recently divorced or are contemplating divorce you will have to deal with or plan for significant tax issues such as asset division, alimony, and tax-return filing status. If you have children, additional issues include child support; claiming of the children as dependents; the child, child care, and…

  • 3 May, 2018
  • Jacqueline Cran
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30Apr2018

Don’t Toss Those Tax Records Yet!

 

tax records

 

Article Highlights:

  • Reasons to Keep Records
  • Statute of Limitations
  • Maintaining Record of Asset Basis

Even though the 2017 tax due date has come and gone, and even though you have filed your 2017 tax return, you may still need to keep your 2017 tax records. Generally, tax records are retained for two reasons: (1) in case the IRS or a state agency decides to question the information on your tax returns or (2)…

  • 30 Apr, 2018
  • Jacqueline Cran
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