Archive for Taxes

Beware of a New Fraud Risk!

There is a fraud risk related to the Electronic Federal Tax Payment System (EFTPS) that you need to be aware of. Always remember that the IRS does not initiate taxpayer contact by e-mail.  Therefore, if you receive an e-mail that appears to be from a tax agency telling you that your federal electronic funds transfer (EFT) […]

Tax Rumors Abound

There are two false tax rumors that have been circulating around and troubling clients.  To set the record straight, a brief explanation of both rumors is provided below. False Rumor #1 – “Employer-paid health insurance benefits will be taxable in 2011.” Not true! Starting in 2011, the amount of employer-paid healthcare benefits was to be […]

The 9 Benefits of Tax Planning

Planning Strategy – A Matter of Timing Planning strategy is often built on two basic timing precepts: Rule 1 – Generally, payment of tax owed on income transactions should be postponed as long as possible provided no penalty is incurred or there is not a pending law change that would adversely affect you.When you postpone […]

Proactive Tax Planning Can Help Save You Money

All planning involves looking ahead to reach a specific goal. People are inclined to make careful plans when they consider making a home purchase, accepting a new job, taking a dream vacation, or investing for retirement. But when it comes to taxes, they often leave matters to chance, perhaps not realizing the tax savings that […]

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 […]

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 […]

Congress Will Have to Take Action to Stop Tax Increases

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, in spite of the fact that President Obama vowed no new taxes for individuals earning less than $200,000 and families earning less than $250,000, there will […]

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 more than it cost to buy, hold, fix up and resell it.

If you are contemplating trying your hand at flipping, keep in mind that you will have a silent partner, Uncle Sam, who will be waiting to take his share of any profits in taxes. (And most likely Sam’s cousin in your state capitol will also expect a share, too.) Taxes play a significant role in the overall transaction, and tax treatment can be quite different depending upon whether you are a dealer, an investor or a homeowner. The following is the tax treatment for each.

New Regulations Provide More Insight to Health Care Reform

The Departments of Labor, Treasury and Health and Human Services recently issued regulations to implement a new Patient’s Bill of Rights as part of the Health Care Reform Act.  The major initial provisions include the following: INSURANCE FOR UNINSURED AMERICANS WITH PRE-EXISTING CONDITIONS Beginning July 1, 2010, a Pre-Existing Condition Insurance Plan will provide new […]

Haven’t Filed an Income Tax Return? Watch Out!

If you have been procrastinating about filing your 2009 tax return or have other prior year returns that have not been filed, you should consider the consequences. Taxpayers should file all tax returns that are due, regardless of whether or not full payment can be made with the return.  Depending on an individual’s circumstances, a […]