Latest Posts on USATaxAid's Blogs

When Millionaires Talk…..

At the end of October 2011, I had the opportunity to be at a meeting with some very successful business owners. Multi-millionaire/billionaires were in attendance and I got to spend some time with them. Here’s a short 11 min video on what I learned they are doing now and where they see the opportunities are right now. ... Read More »

Form 1099-A, Form 1099-C and IRS Audits of Real Estate Professionals

Most of the real estate-related headlines continue to be about the depressed market and foreclosures. In my world, the tax world, there are two tax trends that we’re watching closely. #1: Lenders continue to send out nonsensical Form 1099-As and Form 1099-Cs, or send none at all, or send them years after the foreclosure. And if you fail to report the information correctly, you get a penalty. Here’s the way it is... Read More »

Deductions? How They Stack Up.

The IRS has released their ‘average’ write-offs based on income. There is no hard and fast rule on how much you can deduct before the audit bells go off, but usually you’re safe if you stay at or under the average amount. Adjusted Gross Income under $15,000: Taxable income is $2,739, Interest Expense is $8,838, Charity is $1,496 and Total Itemized Deductions are $16,164. Adjusted Gross Income $15,000 - $29,999: Taxable income is... Read More »

New Rules for Tax Preparers

The IRS has pushed back its requirement for paid tax preparers to receive special licensing. It was slated to start this year, but if an existing unlicensed tax preparer has a PTIN (special number we get from the IRS), they get a one-year reprieve.

1. That reprieve is not available for California and Oregon state returns, however. Only CPAs, attorneys, Enrolled Agents and special state designed licensed preparers can prepare tax... Read More »

2. Important Ruling for Stock Traders

   October 25, 2011 | Posted in Diane's Blog, USATaxAid's Blogs | 1 Comment
   

   There are a lot of special rules for people who buy and sell stocks. If you have a gain, it’s probably a short term or long-term capital gain. Short-term capital gain means it is taxed like ordinary income. Long-term capital gain gets special tax treatment. If you have a loss, you’re limited to an offset to capital gains plus $3,000 per years. So if you have a really bad year and lose... Read More »

3. Which Way Is Your Business Going?

   October 18, 2011 | Posted in Diane's Blog, USATaxAid's Blogs | 1 Comment
   

   These days, it seems like there are two types of business owners:

   1. Those that are closing their business or are about to, and
   2. Those that are making more money then ever before.
   In Category #1: There are a couple of reasons why the business owners are closing down. It could be that they realize it’s taking a lot more work and effort to make the same amount of money... Read More »

4. IRS Changing Tax Lien Policy

   October 13, 2011 | Posted in Diane's Blog, USATaxAid's Blogs
   

   Finally some good news from the IRS. They are going to file fewer tax liens. The IRS files tax liens against property when there are unpaid taxes. Currently, they file liens automatically when there is past due tax of $5,000 or more. They will be increasing the threshold to $10,000. They also have stated that they are going to stop doing automatic liens and instead will look at each individual... Read More »

5. IRS Foul-up Cost Taxpayers

   October 11, 2011 | Posted in Diane's Blog, USATaxAid's Blogs
   

   Blame it on new hires with inadequate training or blame it on untested computer programs that went live too soon. Whatever the reason, the IRS is making some big mistakes these days. Here are just a few of the ones that we’ve dealt with at US TaxAid Services this week:

   • One client had an IRS demand letter delivered to her home. It stated that they were going to begin to seize assets.... Read More »

   • The Future of C Corporations

     September 13, 2011 | Posted in Diane's Blog, USATaxAid's Blogs | 4 Comments
     

     It’s always interesting to hear Democrats and Republicans talk specifically about the same tax reform and amazingly, agree! And it’s especially interesting to me because they are talking about something near and dear to my heart – significant tax reductions for C Corporations. Before you think that’s only going to help the fat cat big corporations, think again. A C Corporation can be a small business owner’s best friend. In fact, prior to 1986, most... Read More »

   • LLCs and Self-Employment Tax

     September 12, 2011 | Posted in Diane's Blog, USATaxAid's Blogs
     

     Just when you thought you had your business structure dialed in, here comes one more issue to worry about – self-employment taxes and your LLC. This is even more confusing because we have some conflicting guidance from the IRS. First, of all, let’s look at the two types of LLC that you may have. It could be member-managed or it could be manager-managed. Initially, most CPAs took the position that if an LLC was... Read More »

   • Yeah, You Really Can Have a Business in 10 Days or Less

     September 10, 2011 | Posted in Diane's Blog, USATaxAid's Blogs

     I know you’ve seen the spammy ads that promise you amazing results in no time flat. Get rich quick! Get thin quick! Get whatever quick ... And we’ve all become pretty jaded with the headlines. That made today’s blog harder for me to write because it’s all true and I hope that you just hang on with me through the end. I want to tell you a little story about an entrepreneur who had... Read More »

   • How Do Your Deductions Stack Up?

     August 18, 2011 | Posted in Diane's Blog, USATaxAid's Blogs
     

     The IRS has released their ‘average’ write-offs based on income. There is no hard and fast rule on how much you can deduct before the audit bells go off, but usually you’re safe if you stay at or under the average amount. Adjusted Gross Income under $15,000: Taxable income is $2,739, Interest Expense is $8,838, Charity is $1,496 and Total Itemized Deductions are $16,164. Adjusted Gross Income $15,000 - $29,999: Taxable income is... Read More »