Blog | WM. F. Horne & Company, PLLC

01Jul2019

How Does Combining a Vacation with a Foreign Business Trip Affect the Tax Deduction for Travel Expenses of a Self-Employed Individual?

 

business trip

 

Article Highlights: 

 

  • Primarily Business
  • Primarily Vacation
  • Special Circumstances
  • Foreign Conventions, Seminars and Meetings
  • Cruise Ships
  • Spousal Travel Expenses

 

Note: effective for years 2018 through 2025, the Tax Cuts and Jobs Act of 2017 suspended the deduction of miscellaneous itemized expenses that must be reduced by 2% of the taxpayer’s adjusted gross income. Employee business expenses, including travel expenses, fall into this category. Therefore, this discussion only applies to self-employed individuals for years 2018-2025.

When a self-employed individual…

  • 1 Jul, 2019
  • Jacqueline Cran
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27Jun2019

Household Help: Employee or Contractor?

 

household employee

 

Article Highlights:

  • Household Employee Definition
  • Employee Control Factors
  • Self-employed or Employee
  • Withholding Requirements
  • Reporting Requirements

Taxpayers often will hire an individual or firm to provide services at the taxpayer’s home. Because the IRS requires employers to withhold taxes for employees and issue them W-2s at the end of the year, the big question is whether or not that individual is a household employee.

Determining whether a household worker is considered an employee depends a great deal…

  • 27 Jun, 2019
  • Jacqueline Cran
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24Jun2019

Donor Advised Funds Provide Tax Benefits

 

Donor advised funds

Article Highlights:

  • Donor-Advised Fund
  • Itemized or Standard Deductions
  • Sponsoring Organizations
  • Tax Benefits
  • Bunching Strategy
  • High Income Years
  • Donating Appreciated Assets

If you would like to make a substantial tax-deductible charitable donation this year, but have the ability to spread the actual distribution of funds to specific charities over a number of years, a donor-advised fund (DAF) may fill that need. There are any number of reasons individuals choose DAFs, including making a substantial charitable donation in…

  • 24 Jun, 2019
  • Jacqueline Cran
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20Jun2019

Hobby or Business? It Makes a Difference for Taxes

BusinessOrHobby

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. Recent tax law changes have added to the confusion. 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…

  • 20 Jun, 2019
  • Jacqueline Cran
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17Jun2019

Eldercare Can Be a Medical Deduction

 

elder care

 

Article Highlights:

  • Nursing Homes
  • Meals and Lodging
  • Home Care
  • Nursing Services
  • Caregiver Agencies
  • Household Employees

Because people are living longer now than ever before, many individuals are serving as care providers for loved ones (such as parents or spouses) who cannot live independently. Such individuals often have questions regarding the tax ramifications associated with the cost of such care. For these individuals, the cost of such care may be deductible as a medical expense.

Incapable…

  • 17 Jun, 2019
  • Jacqueline Cran
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10Jun2019

Gift Tax Treatment of Tuition Plans

 

tuition

 

Article Highlights:

  • Purpose of Qualified Tuition Plans
  • Gift Tax Implications
  • Special Five-Year Election
  • Change of Beneficiary
  • Eligible Expenses
  • Direct Payment of Tuition

Qualified tuition plans (QTPs) provide a means for family members and others to save for the future educational needs of children. Investment earnings within a QTP account are tax deferred and not taxable when withdrawn if used to pay qualified tuition and certain other expenses.

Each individual’s contribution to a QTP (also sometimes referred to as…

  • 10 Jun, 2019
  • Jacqueline Cran
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06Jun2019

School’s Out – Who is Going to Take Care of the Kids?

 

School's out 2019

 

Article Highlights: 

  • Child Age Limits
  • Employment-Related Expense
  • Married Taxpayer Earnings Limits
  • Disabled or Full-Time-Student Spouse
  • Expense Limits

Summer has just arrived, and there is a tax break that working parents should know about. Many working parents must arrange for care of their children under 13 years of age (or any age if disabled) during the school vacation period. A popular solution — with a tax benefit — is a day camp program. The cost…

  • 6 Jun, 2019
  • Jacqueline Cran
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30May2019

June 2019 Tax Due Dates

june 2019

 

June 2019 Individual Due Dates

 

June 10 – 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 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages…

  • 30 May, 2019
  • Jacqueline Cran
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20May2019

Tax Issues Related to Divorce

 

divorce tax issues

 

Article Highlights: 

  • Family Court
  • Division of Property
  • Spousal Buyout Debt
  • Filing Status
  • Joint and Several Liability
  • Claiming the Children as Dependents
  • Head of Household Filing Status
  • Higher Education Tuition Credits
  • Child Care Credit
  • Child Tax Credit
  • Earned Income Tax Credit
  • Alimony
  • Child Support
  • Conflict of Interest

Divorce is a traumatic event in anyone’s life, and the tax aspects are frequently overlooked, which can add to the distress. The following is an overview of many of the commonly encountered tax issues associated with divorce.

  • 20 May, 2019
  • Jacqueline Cran
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16May2019

Protecting Yourself from Scams, ID Theft, and Cyber Criminals

 

blog theft

 

Article Highlights: 

  • ID Theft
  • What’s in Your Wallet or Purse
  • Phony E-mail
  • Pop-up Ads
  • Only Access Secure Websites
  • Avoid Phishing Scams
  • Security Software
  • Educate Children
  • Passwords
  • Phony Charities
  • Impersonating the IRS
  • Back Up Files
  • If It Is Too Good to Be True

As much as the Internet has changed our lives for the good, it has also opened us up to threats from crooks from all over the world. They are smart and always coming up with a new trick to separate you…

  • 16 May, 2019
  • Jacqueline Cran
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