Blog | WM. F. Horne & Company, PLLC

14Oct2010

Time is Running Out for the Home Energy Property Credit

Planning to make an “energy-saving” improvement to your home? 2010 is the final year to take advantage of the tax credit available so you will need to act quickly as there are only three months left. Whether you simply want to cut your utility bills or winterize your home, do it soon!

The name “Home Energy Property Credit” given by Congress is not as descriptive as it could have been and is easily confused with other credits….

  • 14 Oct, 2010
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11Oct2010

New Penalties for Failure to File or Furnish Information Returns

Tax law requires businesses to provide information returns, such a 1099s, to each payee that the business has paid $600 or more for the year. The law also includes penalties for failure to file the same information returns with the IRS.

To ensure compliance with these requirements, there are substantial penalties, and, as part of the recently passed Small Business Jobs Act of 2010, those penalties have been doubled. The penalties are generally based upon how late…

  • 11 Oct, 2010
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06Oct2010

New Breaks for Small Businesses

The 2010 Small Business Jobs Act enacted September 27, 2010 includes an assortment of incentives and tax breaks for small businesses. The following is a brief overview of some of the key provisions included in the new law. Watch for additional details in future newsletters.

  • Cell Phones No Longer Listed PropertyThis means that cell phones can be deducted or depreciated like other business property, without the complicated recordkeeping required for listed property. …

  • 6 Oct, 2010
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21Sep2010

Does the IRS Owe You Money??

If you have not filed a prior year tax return and are due a refund, you should consider filing the return to claim that refund. If you are missing a refund for a previously filed tax return, you should check the status of your refund and confirm your current address.

Unclaimed Refunds

Some people may have had taxes withheld from their wages but were not required to file a tax return because they had too little income….

  • 21 Sep, 2010
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14Sep2010

Reminders for September 15th

Individuals:

  • The third installment of 2010 individual estimated taxes is due.

Corporations:

  • File a 2009 calendar year income tax return (Form 1120 or 1120-A) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an automatic 6-month extension.
  • Deposit the third installment of estimated income tax for 2010 for calendar year corporations.

S Corporations:

  • File a 2009 calendar year income tax return (Form 1120S) and pay any tax due. This due date applies…

  • 14 Sep, 2010
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08Sep2010

Tax Increases Are Coming Unless Congress Takes Action

Normally, one would think that Congress would have to take some action to increase taxes. However, it is quite the opposite for 2011. If Congress fails to take action, there will be a tax increase affecting just about everyone in every tax category. In order to skirt a Senate rule that requires 60 votes to pass a bill that increases the deficit beyond a ten-year window, Congress passed the Bush tax cuts in 2001 and 2003 with…

  • 8 Sep, 2010
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30Aug2010

“Flipping” Homes – A Reviving Trend in Real Estate

Prior to the recent economic downturn, flipping real estate was popular. With mortgage interest rates low and home prices at historical lows, flipping appears to be on the rise again. House flipping is, essentially, purchasing a house or property, improving it, and then selling it (presumably for a profit) in a short period of time. The key is to find a suitable fixer-upper that is priced under market for its location, fix it up, and resell it for…

  • 30 Aug, 2010
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27Aug2010

Worker Misclassification Under Congressional Scrutiny

A Congressional research report titled “Tax Gap: Misclassification of Employees as Independent Contractors,” focused on the tax gap created by misclassifying workers as independent contractors rather than employees and the problems associated with enforcing proper classifications.

Businesses must withhold tax and pay Social Security, Medicare and unemployment tax on wages paid to employees. On the other hand, they don’t withhold or pay taxes on payments to independent contractors. An IRS study found that workers misclassified as independent…

  • 27 Aug, 2010
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25Aug2010

Thinking of Making Home Improvements?

There is currently a 30% tax credit (maximum $1,500 for the combined 2009 and 2010 tax years) for certain home energy-saving improvements. That credit expires at the end of 2010. Examples of qualifying improvements include high-efficiency heating and AC systems, energy-efficient windows and skylights, energy-efficient doors, qualifying insulation and certain roofs also qualify for the credit. Call our office for details.

  • 25 Aug, 2010
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23Aug2010

Maximizing Medical Deductions Before 2013

Medical expenses are deductible if you itemize your deductions. However, there is a limit on how much of those medical expenses can be deducted based upon your income for the year. Currently, only medical costs that exceed 7.5% (10% if you are subject to the alternative minimum tax) of your adjusted gross income (AGI) can be deducted.

For example, you have wages of $50,000, interest income of $1,000, and no adjustments to your income. Your AGI is…

  • 23 Aug, 2010
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