Blog | WM. F. Horne & Company, PLLC

17Aug2017

Preparing for your Child’s Future Education

 

future education

Article Highlights:

  • Sec. 529 plans
  • Coverdell Education Savings Accounts
  • American Opportunity Tax Credit
  • The Lifetime Learning Credit
  • Qualified Education Loan Interest

Figuring out how to pay for your child’s trade school or college education can be challenging, and the earlier you create your plan and begin executing it, the greater your chances are of having the needed money set aside to pay for it.  The government provides a variety of tax incentives to help defray…

  • 17 Aug, 2017
  • Jacqueline Cran
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04Aug2017

Elusive Employee Business Expense Tax Deduction

 

employee business expense

Article Highlights:

  • Employee versus Self-Employed
  • Itemized Deduction
  • Two Percent of AGI Limitation
  • Alternative Minimum Tax Limitation
  • Ordinary and Necessary Requirement

One major difference between being an employee and being self-employed is how you deduct the expenses you incur related to your work. A self-employed individual is able to deduct expenses on his or her business schedule, while an employee is generally limited to deducting them as itemized deductions.

That means self-employed individuals benefit by deducting…

  • 4 Aug, 2017
  • Jacqueline Cran
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27Jul2017

Is Solar Energy Right for You?

 

solar energy

 

Article Highlights:

  • Solar Electric System TV Ads
  • Do You Really Need One?
  • System Cost
  • Financing
  • Solar Tax Credit
  • Home Mortgage Interest

It seems like you can’t watch TV these days without being exposed to home solar ads touting free electricity and big tax credits. Be careful, as these savings and tax credits may not be all that they are advertised to be; this depends upon your financial and tax circumstances. Home solar is not necessarily the…

  • 27 Jul, 2017
  • Jacqueline Cran
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24Jul2017

Hobby or Business?

business or hobby

Article Highlights:

  • For-Profit Businesses
  • Not-for-Profit Businesses
  • Nine Determining Factors
  • Profit Presumption

Taxpayers are often confused by the differences in tax treatment between businesses that are entered into for profit and those that are not, commonly referred to as hobbies. The differences are:

  • Businesses Entered Into for Profit – For businesses entered into for profit, the profits are taxable, and losses are generally deductible against other income. The income and expenses are commonly reported on…
  • 24 Jul, 2017
  • Jacqueline Cran
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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
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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
  • 0 Comments
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