tax solutions for realtors: Should You Adjust Your Withholding for 2014?
- 01/21/14 10:18 PM
Early this year, review the amount of income tax you're having withheld from your wages to see if it should be adjusted. While you must meet minimum tax payment requirements, don't overwithhold or you'll be giving the IRS interest-free use of your money for a year. Don't underwithhold either, or you face penalty and interest charges on the underpayment. Note: For your 2013 tax return, the AMT exemption is $80,800 when you're married filing a joint return or are a surviving spouse, $51,900 when you file as single, and $40,400 if you're married and file separately. The exemption decreases once your … (2 comments)
tax solutions for realtors: Excuses, Excuses
- 01/21/14 10:11 PM
So-called "tax protestors" have dreamed up dozens of excuses for not paying the taxes the rest of us grumble about. They argue that the Sixteenth Amendment, which authorizes the government to levy an income tax without apportionment among the states, was never "properly ratified." They accuse the "alleged" Internal Revenue Service of being a massive premeditated conspiracy to defraud U.S. citizens. Some groups assert that the gold tassels around the American flags that stand in many federal courts are a "mutilation," rendering them "courts of admiralty" with no proper jurisdiction. Still others contend that taxpayers aren't required to file a federal … (2 comments)
tax solutions for realtors: Check your Children's Filing Requirements
- 01/20/14 09:31 PM
Your children may need to file a 2013 income tax return. A return is needed if wages exceeded $6,100, the child had self-employment income over $400, or investment income exceeded $1,000. If the child had both wages and investment income, other thresholds apply. Contact us for more information or filing assistance. Bill Zumwalt Helping REALTORS with Tax Solutions and Solving Tax Problems for REALTORS REALTOR Tax Preparation, REALTOR Tax Accountant, Tax Preparation Tulsa, OK Accountant Tulsa, OK, CPA Tulsa, OK, Tax Prep Tulsa, OK, Tax Savings Tulsa, OK, Tax Accountant Tulsa, OK The Tax Coach for REALTORS William T Zumwalt CPA,CTC, PLLC 5416 South Yale Ave Suite … (0 comments)
tax solutions for realtors: The AMT: Will this Tax Apply to You?
- 01/20/14 09:25 PM
What's your alternative minimum tax (AMT) preference? Though you might prefer to not think about the AMT, certain income and deductions, known as preference items, affect the way the tax will apply to you. Those amounts, along with others called "adjustments," are added to or subtracted from the income shown on your tax return to arrive at your AMT taxable income. For example, certain bond interest that you exclude from your regular taxable income must be included when computing income for the AMT. This is a "preference item" because tax-exempt interest gets preferential treatment under ordinary federal income tax rules. Adjustments … (0 comments)
tax solutions for realtors: 1099 Reporting Due in January
- 01/19/14 10:21 PM
Nearly every company, large or small, has to file Form 1099-MISC with the IRS and send a copy to recipients by January 31, 2014. You use Form 1099-MISC to report miscellaneous payments to nonemployees. This includes fees for services paid to independent contractors, such as consultants, lawyers, cleaning services, and others. Generally, you don't report fees paid to corporations, but there are exceptions (payments to lawyers, for example). For details or filing assistance, contact our office. Bill Zumwalt Helping REALTORS with Tax Solutions and Solving Tax Problems for REALTORS REALTOR Tax Preparation, REALTOR Tax Accountant, Tax Preparation Tulsa, OK Accountant Tulsa, OK, CPA Tulsa, … (1 comments)
tax solutions for realtors: Parents Can Cut Taxes With Child-Related Credits
- 01/19/14 10:14 PM
Are you a parent? Give yourself some credit – a child-related tax credit, that is. Here are two that can reduce your 2013 federal income tax liability. Child tax credit. The child tax credit applies if your dependent children were age 16 or younger at the end of 2013. The basic credit is $1,000 per child, though the amount you can claim may be less when you file a joint return and your income is more than $110,000 ($75,000 for other parents). You may also qualify for the "additional child tax credit," which can generate a refund even if you owe … (0 comments)
tax solutions for realtors: Who Must File a 2013 Income Tax Return?
- 01/17/14 10:14 PM
The rules for filing 2013 tax returns are straightforward for most people. Marital status, age, and income level are generally the determining factors. Here's a quick overview of the income levels at which a 2013 return is required. *Single individual…..$10,000 *Single individual, 65 or older…..$11,500 *Married individual, separate return, regardless of age…..$3,900 *Married couple, joint return…..$20,000 *Married couple, joint return, one spouse 65 or older…..$21,200 *Married couple, joint return, both spouses 65 or older…..$22,400 *Head of household…..$12,850 *Head of household, 65 or older…..$14,350 *Qualifying widow or widower (surviving spouse)…..$16,100 *Qualifying widow or widower (surviving spouse), 65 or older…..$17,300 Different IRS rules … (3 comments)
tax solutions for realtors: How to Maximize Your Tax Deduction after a Disaster Strikes
- 01/16/14 10:21 PM
Fire, flood, tornado. Violent weather can wreak emotional and financial havoc. If your home, vehicle, or other personal property is damaged or destroyed by a sudden, unexpected casualty, an itemized tax deduction may help ease the financial burden. In most cases, you claim a casualty loss in the taxable year the calamity strikes. However, if you're in a presidentially declared disaster area, you have the option of amending your prior year return, thereby getting tax relief sooner. Either way, to receive the maximum benefit you'll need to calculate the amount of your loss. Here's how. 1. File an insurance claim. If … (0 comments)
tax solutions for realtors: Check the Tax Rules before Lending Money to Relatives
- 01/16/14 10:08 PM
There are many worthwhile reasons to lend money to a relative. For example, you may want to help a child or sibling continue their education or start their own business. But lending money to relatives can have tax consequences. The IRS requires that a minimum rate of interest be charged on loans. If you do not charge at least the minimum rate, the IRS will still require you to pay tax on the difference between the interest you should have charged and what you actually charged. If these excess amounts become large, or if the loan is forgiven, there may also … (0 comments)
tax solutions for realtors: IRS announces new FSA rule
- 01/15/14 10:36 PM
Flexible spending accounts (FSAs) allow taxpayers to set aside pre-tax dollars to pay for out-of-pocket medical expenses. The drawback has been the fact that unused amounts each year are forfeited. Plans could provide a 2½ month grace period to use up unspent set-asides. Now a change announced by the IRS adds more flexibility to these accounts. Plans can be modified by employers to allow up to $500 of unused amounts to be carried over into the following year. Health FSAs cannot have both the old 2½ month grace period and the $500 carryover; they can have one or the other (or … (1 comments)
tax solutions for realtors: 2014 Quickly Timely Tips Part 3
- 01/15/14 09:48 PM
IRS will open the 2014 filing season on January 31, a 10-day delay due to the October government shutdown. 401(k) maximum salary deferral for 2014 is $17,500 ($23,000 for those 50 or older). SIMPLE maximum salary deferral for 2014 is $12,000 ($14,500 for those 50 or older). IRA contribution limit for 2014 is $5,500 ($6,500 for those 50 or older). The top estate tax rate for 2014 is 40%, and the exemption for 2014 increases to $5,340,000. The annual gift tax exclusion for 2014 is $14,000. The tax credit for the adoption of an eligible child in 2014 is $13,190. Singles … (0 comments)
tax solutions for realtors: The Endangered Species List
- 01/14/14 09:48 PM
On September 1, 1914, "Martha," the last remaining passenger pigeon (ectopistes migratorius), died at the Cincinnati Zoo. On September 7, 1936, "Benjamin," the last Tasmanian tiger (thylacinus cynocephalus), died at Australia's Hobart Zoo. And on June 24, 2012, "Lonesome George," the last living Pinta Island tortoise (chelonoidis nigra abingdoni), died in Ecuador's Galapagos National Park.
When you think of endangered species, you naturally think of plants and animals. But the IRS has its own endangered species list (called "listed transactions"), and that means sometimes even tax strategies go extinct. So, for example, in October, 2006, the last grandfathered private annuity trust was … (2 comments)
tax solutions for realtors: Don't Overlook the "Nanny Tax"
- 01/13/14 10:20 PM
As you review your filing requirements for 2013, make sure you don't overlook the so-called "nanny tax." If you have a household employee, you could be liable to pay state and federal payroll taxes. First, you must determine whether you have a household employee. Generally, this is someone you hire to work in or around your house. It could be a babysitter, nurse, maid, housekeeper, or gardener. It doesn't matter whether they work part-time or full-time, or whether you pay them hourly, weekly, or by the job. But not everyone who works around your house is an employee. For example, if … (1 comments)
tax solutions for realtors: 2014 UPDATE: Affordable Care Act (ACA)
- 01/12/14 10:42 PM
The Affordable Care Act, the health care reform legislation passed in 2010, originally mandated health insurance coverage for everyone starting January 1, 2014. But the law’s complexity soon made it evident that the requirements would have to be revised. The first change was the one-year delay in the requirement that companies with 50 or more full-time employees provide “affordable, minimum essential coverage” to their employees. When the October 1 launch of the government website setting up an insurance Marketplace for individuals proved to be a disaster, even more changes to the law were announced. Here’s an overview of those changes. NOVEMBER … (0 comments)
tax solutions for realtors: 2014 Tax Tip for Auto Expense
- 01/12/14 10:00 PM
As I have mentioned throughout the last couple of years one of the best methods to be able to prove, without a shadow of doubt, your total business mileage is to have your oil changed at the beginning of each year. You then have documentary proof of your odometer reading and can thus prove the total miles you drove that vehicle during the past year. Of course, now it is up to you to be able to prove the amount of business miles. You will need to keep a log of your mileage but there are exceptions so give me a … (3 comments)
tax solutions for realtors: 2014 Quick Timely Tips Part 2
- 01/08/14 10:51 PM
More tips for you to consider; IRS sets the standard mileage rate for business driving at 56 cents a mile for 2014. The mileage rate for 2014 driving for medical or moving reasons is set at 23.5 cents a mile. The mileage rate for charitable driving in 2014 remains at 14 cents a mile. Section 179 expensing limit for 2014 drops to $25,000, with a phase-out threshold of $200,000. The taxable wage base for social security increases to $117,000 for 2014. Retirees under full retirement age can earn up to $15,480 in 2014 without losing any social security benefits. The kiddie … (0 comments)
tax solutions for realtors: 2014 Quick Timely Tips Part 1
- 01/08/14 10:37 PM
I have a bunch of short tips to share with you. Some will apply to you others won't, hope this helps! January 15 is the due date for the fourth and final installment of 2013 estimated taxes for individuals. Individuals need not make the January 15 quarterly estimate for 2013 if they file their 2013 tax return and pay taxes due by January 31. January 31 is the deadline for employers to provide 2013 W-2s to employees. Payers must furnish payees with Form 1099s by January 31. The deadline for providing Form 1099-B to customers is February 18. January 31 is … (0 comments)
tax solutions for realtors: Test Your Tax Knowledge
- 01/07/14 09:47 PM
They say that knowledge is power, and that's especially true with taxes. So here's a quick quiz to test your tax knowledge in 2014. But look out — the questions (and the answers) might not be what you expect!:
We'll start with an easy one. Last year's "fiscal cliff" legislation raised the top marginal tax rate to 39.6%. What's the top effective rate? A. 39.6% B. 43.4% (39.6% plus 3.8% Medicare tax) C. 43.4% (depending on "PEP" and "Pease" phaseouts) Give up? It's a trick question — all three answers can be correct, depending on your own circumstances!
Alright, let's shift gears a bit. The … (1 comments)
tax solutions for realtors: Thoughts on Taxes for 2014
- 01/06/14 09:26 PM
2013 has been a big year for taxes. The "fiscal cliff" deal boosted the top federal income tax rate to 39.6%; "Obamacare" added new taxes on top earners; and dozens of state and local governments raised their taxes, too. Congress will finish 2013 even more divided than it began, which will probably protect us from new taxes next year. But here are some quotes to ease the sting of this year's higher bills:
"[A tax loophole is] something that benefits the other guy. If it benefits you, it is tax reform." Sen. Russell B. Long (D-LA) "The Eiffel Tower is the Empire … (1 comments)
tax solutions for realtors: Got Some Serious Tax Problems?
- 01/05/14 10:50 PM
Well I’ve got some serious answers! How about a Solo 401k? With this tax planning tool you can put up to $51,000 a year into a Solo 401k. Take your money out of the hands of social security and invest for your retirement and get a big tax deduction. Please go to our website at www.TeamZumwalt.com and go to the tab for online downloads and download the e brochure “Tax Guide for Solo 401k Plans”. Should you have any questions as to how this can help just give me a call and we can discuss your retirement options. Oh, and I … (0 comments)
Early this year, review the amount of income tax you're having withheld from your wages to see if it should be adjusted. While you must meet minimum tax payment requirements, don't overwithhold or you'll be giving the IRS interest-free use of your money for a year. Don't underwithhold either, or you face penalty and interest charges on the underpayment.
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