Blog | WM. F. Horne & Company, PLLC

Article Highlights:

• Service Member Residence or Domicile
• Service Member Spouse’s Residence or Domicile
• Non-Taxable Allowances
• Combat Zone Exclusion
• Home Mortgage Interest Deduction
• Home Property Tax Deduction
• Home Sale Gain Exclusion
• Moving Deduction
• Death Gratuity Payments
• Child Credit
• Earned Income Tax Credit
• IRA Contributions
• Reservist’s Travel Expenses
• Qualified Reservist’s Pension Withdrawals
• Retired Military Disability Compensation

Military members benefit from a variety of special tax benefits. These include certain non-taxable allowances, non-taxable combat pay, and a variety of other special tax provisions. Here is a rundown on…

Article Highlights: 

• Refundable vs. Nonrefundable Credits
• Home Solar Credit
• Solar-Power Tax Credit Phaseout
• Is Solar Worth the Expense?
• Homeowner vs. Home Resident
• Solar Additions
• Leased Solar Systems
• Plug-in Electric Vehicles
• Multiple Vehicle Purchases
• Personal Tax Credits
• General Business Credits

Congress uses tax deductions and tax credits to influence taxpayers’ actions. For instance, it seeks to stimulate taxpayers to reduce their energy consumption and moving away from the use of fossil fuels. In this article, we explore the benefits and drawbacks of…

Generally speaking, tax return mistakes are a lot more common than you probably realize. Taxes are naturally complicated, and the paperwork required to file them properly is often convoluted. This is especially true if you’re filing your taxes yourself — and all of this is in reference to a fairly normal year as far as the IRS is concerned.

The 2018 tax year, however, certainly does not qualify as a…

Article Highlights:

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

If you are a neat-nick and your tax return for last year has been completed and filed, you are probably thinking about getting rid of the tax records related to that return. On the other hand, if you are afraid to dump old records, you are probably looking for a box to put them in so you can…

Individual Due Dates

May 10 – Report Tips to Employer

If you are an employee who works for tips and received more than $20 in tips during April, you are required to report them to your employer on IRS Form 4070 no later than May 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are…

Article Highlights:

• Your federal tax refund status can be checked online.
• E-file refunds are generally issued within 21 days of filing.
• Direct deposit provides the quickest refunds.

If your 2018 federal return has already been filed and you are due a refund, you can check the status of your refund online.

“Where’s My Refund?” is an interactive tool on the IRS website at…

Article Highlights:

• Pre-Tax Reform Home Mortgage Interest Deduction
  • Home Acquisition Debt
  • Home Equity Debt

• Tax Reform Mortgage Interest Deduction Changes
  • Home Acquisition Debt
  • Home Equity Debt

• Tracing Equity Debt
• Refinancing
• Property Taxes

As part of the recent tax reform, the Tax Cuts and Jobs Act of 2017, the deduction for home mortgage interest and property taxes has undergone substantial alterations. These changes will impact most homeowners who itemize their deductions each year.

Mortgage Interest

Prior to the tax reform, a taxpayer…

Article Highlights:

• Annual Mileage
• Optional (Standard) Mileage Method
• Actual-Expense Method
• Vehicle Depreciation
• Luxury-Vehicle Limits
• SUVs
• Interest Expenses
• Business-Vehicle Sales or Trade-ins
• Employees
• Plug-in Electric Vehicle Credits

The Tax Cuts and Jobs Act of 2018 and other tax reforms have brought about significant changes in the way that vehicle use is deducted for business purposes. Before getting into these changes, it is appropriate to first provide a review of the two methods for deducting the use of a business vehicle.

It…

You know the old line about the inevitability of death and taxes? It’s still true. What isn’t inevitable, however, is the need to pay penalties to the IRS. It happens, but it doesn’t have to, and the main reason that it does is because taxpayers don’t educate themselves about the rules. When you get hit with an IRS penalty, it adds on to a number that you already wish you didn’t…

Article Highlights:

• Home never rented
• Home rented for fewer than 15 days
• Home rented for at least 15 days with minor personal use
• Home rented for at least 15 days with major personal use
• Vacation home sales

If you have a second home in a resort area, or if you have been considering acquiring a second home or vacation home, you may have questions about how rental income is taxed for a part-time vacation-home rental….