Category: Individual Tax Planning
Posted: December 2020
The end of the year is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next. Here are some important points to remember...
Category: Business Tax Planning
Posted: December 2020
The best year-end tax planning strategy for many taxpayers is to still follow the time-honored approach of deferring income and accelerating deductions to minimize 2020 taxes...
Category: Individual Tax Planning
Posted: December 2019
Although the tax laws have not changed, the end of the year is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next. Here are some important points to remember...
Category: Business Tax Planning
Posted: December 2019
As the end of the year approaches, it is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next one...
Category: Business Tax Planning
Posted: December 2019
Effective with returns due after January 1, 2016, penalties have increased for not filing correct information returns and/or not furnishing correct payee statements, plus penalties are now subject to inflationary adjustments. Examples of affected forms include: Forms 1098, 1099, W-2G and W-2...
Category: Business Tax Planning
Posted: October 2019
Code Section 179 expensing election has long been a tax boon to small and medium-sized business, enabling businesses to claim immediate deductions, instead of depreciation deductions over time, for many capital assets...
Category: Individual Tax Planning
Posted: October 2019
The IRS wants you to understand how and when they contact taxpayers, and to help you determine whether a contact you receive is truly from an IRS employee...
Category: Individual Tax Planning
Posted: August 2019
Did you know that lottery winnings ARE taxable? This is the case for cash winnings and for the fair market value of any noncash prizes you may win, such as a car or vacation. Depending on your other income and the amount of your winnings, your federal tax rate may be as high as 37%. In Michigan, your lottery winnings are also subject to state income tax. You don't get any capital gains rate break for...
Category: Business Tax Planning
Posted: August 2019
Businesses that use a car or other vehicle may be able to deduct the expense of operating that vehicle on their taxes. Businesses generally can use one of the two methods to figure their deductible vehicle expenses—actual car expenses OR standard mileage rate...
Category: Retirement Planning, Individual Tax Planning
Posted: June 2019
Nursing-home care can be very expensive. As a result, insurance for such care is growing in popularity. Fortunately, there is some tax relief for these expenses. Both the cost of qualified long-term care and insurance coverage for such care qualify...
Category: Individual Tax Planning
Posted: June 2019
In recent years, finding a rental home has become a common part of travel and vacation planning. Have you thought about the tax consequences of renting out your vacation home for part o...
Category: Retirement Planning, Individual Tax Planning
Posted: March 2019
Is your 70th birthday getting close? You should be aware that you must begin taking minimum annual distributions from your traditional IRAs no later than April 1 following the year in which you reach age 70-1/2. The tax rules require minimum annual distributions to be made to help assure that IRAs are used primarily to provide for retirement, rather than as a family tax shelter...
Category: Individual Tax Planning, Business Tax Planning
Posted: March 2019
When you travel on business for your company, you may earn frequent flyer miles or other promotional benefits, such as through rental cars or hotels. These promotional benefits can be exchanged for free or discounted travel, upgraded seating, travel services, etc. Even though the business trips are paid for by your employer, you may be allowed to use the frequent flyer miles and other benefits for your own personal travel...
Category: Individual Tax Planning
Posted: December 2018
Year-end planning for 2018 takes place against the backdrop of a new tax law – the Tax Cuts and Jobs Act – that made major changes in the tax rules for individuals and businesses. As the end of the year approaches...
Category: Business Tax Planning
Posted: December 2018
Year-end planning for 2018 takes place against the backdrop of a new tax law – the Tax Cuts and Jobs Act – that made major changes in the tax rules for individuals and businesses. As the end of the year approaches...
Category: Business Tax Planning
Posted: December 2018
The State of Michigan has recently changed the notification procedures for filing the Michigan Annual Report for companies. We recommend going to our website, clicking on "Resources, State and Government Resources, and then Michigan Business Entity Search"...
Category: Business Tax Planning
Posted: September 2018
The IRS will audit hundreds of thousands of individual tax returns this year. Although that represents a small percentage of all returns filed, this is little consolation if YOUR return is selected for audit. But, with proper planning and preparation, you should fare well. The purpose of the audit is to verify items reported on a tax return. The easiest way to survive a tax audit is to prepare for one in advance. On an ongoing basis you should systematically...
Category: Individual Tax Planning
Posted: September 2018
The medical deduction can only be claimed if your unreimbursed costs exceed 7.5% of your adjusted gross income (AGI) for tax years 2017-2018 (10% of your AGI after 2018). Qualifying costs, which include many items other than hospital and doctor bills, often amount to much larger figures than expected. Here are some items you should take into account when determining your medical costs...
Category: Individual Tax Planning
Posted: August 2018
A tax credit called the "new qualified plug-in electric drive motor vehicle" credit (NQPEDMV credit) is available. Basically a vehicle eligible for the NQPEDMV credit must be new, have 4 wheels (2-wheeled vehicles may qualify for a separate credit) and a battery capacity of at least four kilowatt hours. The base amount of the NQPEDMV credit is...
Category: Individual Tax Planning
Posted: August 2018
If you need to move your IRA (Individual Retirement Account) or 401(k) Profit Sharing Plan, what should you do? As long as you follow the rules, this movement of funds is tax-free and allows continual tax-free buildup. This can be accomplished by a direct transfer from your plan to a new IRA or other retirement plan, or by a distribution (payment) to you that you then transfer within 60 days to a "rollover" IRA (or other plan)...
Category: Business Tax Planning, Individual Tax Planning
Posted: August 2018
A realtor may say location, location, location. But, a CPA will say document, document, document! If you want to deduct bad debts, you must have made real, serious attempts to collect the debt. A debt that cannot be repaid becomes "wholly or partially worthless." To claim a tax deduction for a worthless business debt, the taxpayer must show the existence of a valid debtor-creditor relationship, that the debt was created or acquired in connection with a trade...
Category: Business Growth Strategies
Posted: October 2017
The current business environment remains challenging to small business owners. While a recent survey suggests that business owners are more optimistic about the economy, these same owners expressed concerns about their business’s role in the future. Here are the most prevalent concerns of small business owners as well as some ideas to address them…
Category: Individual Tax Planning, Business Tax planning
Posted: September 2017
Uber, Lyft, Airbnb, Etsy, Rover, TaskRabbit. If you've taken advantage of these services—or provided them to others—you're a member of the sharing economy. If you've only used these services (and not provided them), there's no need to worry about the tax implications. But if you've rented out a spare room in your house through a company like Airbnb, you're probably collecting a fee. A portion of this goes to the company (in this example, Airbnb) while you keep a portion for providing the service. Whether this is your full-time job or a part-time gig to make some extra cash, you need to be aware of the tax consequences…
Category: Business Growth Strategies
Posted: August 2017
A recent survey of 1,700 small business owners in the United States yielded seven financial practices that were consistent among the most successful of these entrepreneurs. The folks who followed many of these routines reported higher levels of annual revenue and expressed higher levels of satisfaction with their decision to become small business owners. Here are the financial habits that were revealed in the survey…
Category: Retirement Planning
Posted: July 2017
Elder financial abuse is a growing concern as our population ages. It is estimated that 25% of the people living in North America in 2031 will be over 65 years of age, and that this group will control 70% of the wealth. Elders are particularly susceptible to exploitation of their financial resources by family members, care providers, telephone scammers and other schemes. Here are the top 10 financial scams, identified by the National Council on Ageing, that target seniors...
Category: Retirement Planning
Posted: July 2017
Most of us focus on the financial aspects of retirement and have traditionally relied on three primary sources. Often called the “three-legged stool,” these sources are comprised of Social Security, employer-sponsored plans, and personal savings...
Category: Individual Tax Planning
Posted: May 2017
There has been news about downsizing at the IRS—budget cuts, reduced personnel, and fewer audits and other compliance activities. What most people don’t realize is that the IRS is persisting in enforcing tax laws...
Category: Individual Tax Planning
Posted: December 2016
As the end of the year approaches, it is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next.
Category: Business Growth Strategies
Posted: October 2016
Autumn is upon us, and the month of October is National Cybersecurity Awareness Month. Cybersecurity is costly, especially for small companies and not-for-profit organizations.
Category: Business Tax Planning
Posted: September 2016
The Fair Labor Standards Act (FLSA) just finalized recent updates to their “white collar” overtime exemptions, and you might be surprised by the final touches. Below are a handful of the revisions that were made to the act.
Category: Individual Tax Planning
Posted: August 2016
People starting college in the fall of 2017 probably haven’t decided where they are going to school, but it’s almost time to start applying for financial aid!
Category: Individual Tax Planning
Posted: July 2016
Michigan’s use tax is one of the least known taxes in the state and for that matter, in most states.
Category: Individual Tax Planning
Posted: June 2016
There is much uncertainty for individual and business taxpayers, since popular tax credits and deductions for both groups have not been extended beyond their December 31, 2014 expiration dates.
Category: Retirement Planning
Posted: March 2016
When it comes to thoughts of retirement, or simply wishing to move on to other adventures, many business owners hope that trusted employees or family members will be able to step up and take over the business.
Category: Business Tax Planning
Posted: January 2016
Many important tax changes were enacted in the Protecting Americans from Tax Hikes (PATH) Act of 2015. These changes involve both retroactive provisions for 2015, and permanent extension of some tax-saving laws. Here is a summary of the major changes.
Category: Business Growth Strategies
Posted: September 2013
Growth isn't just a priority-it's a necessity for your business. Growth doesn't just happen; it is most often intentional, and the result of good planning.
Category: Business Growth Strategies
Posted: February 2014
Driving growth is always a top priority for any business, large or small. Fortunately, current trends suggest a climate conducive to expansion.
Category: Retirement Planning
Posted: March 2014
If you've been holding off on selling your small business until the right market conditions are in place, 2014 might be the year you've been waiting for.
Category: Retirement Planning
Posted: May 2014
Developing sound investment and saving strategies can also only be beneficial for you. Here are updates on retirement plans for 2014.
Category: Business Tax Planning
Posted: December 2015
There is much uncertainty for individual and business taxpayers, since popular tax credits and deductions for both groups have not been extended beyond their December 31, 2014 expiration dates. However, there are some strategies that can be used to reduce your tax burden for this year.
Mierendorf & CO. P.C. / cpas@miercpa.com
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