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Category: Tax Law

Losing the Home Office Space Means Losing the Tax Deduction, Too

Losing the Home Office Space Means Losing the Tax Deduction, Too

A recent article in Bloomberg reported that dedicated space for a home office is “less of a selling point” than it once was for home sellers. It’s appearing less often in real estate ads and marketing, and new-home developers are shifting toward open-floor plans containing flexible spaces, workspace nooks, and lots of handy electrical outlets. That’s all very well as a reflection of how modern connectivity allows many people to work from their sofa, in their pajamas, or at just…

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Trump Plan to Cap Itemized Deductions a Concern for Nonprofits

Trump Plan to Cap Itemized Deductions a Concern for Nonprofits

As has been widely reported, President-Elect Donald Trump’s plan to change the U.S. tax system includes placing a cap on itemized deductions–$100,000 for a single person, and $200,000 for a married couple. Sound like plenty to cover your deductions? (It sure is for mine.) But we all have cause for concern about the impact on U.S. nonprofit organizations, because charitable donations are on the list of potential U.S. tax deductions. Suddenly, the wealthiest of donors will have less incentive to give….

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Forty Cent Difference Between 2016 Business and Charity Mileage Deductions

Forty Cent Difference Between 2016 Business and Charity Mileage Deductions

The IRS actually lowered the amount per mile that a business owner can deduct for vehicle use in 2016. (See 2016 Standard Mileage Rates for Business, Medical and Moving Announced.) The standard mileage deduction went from 57.5 cents for 2015 to 54 cents. The amount that a volunteer using a car for charity can deduct in 2016 stayed right where it’s been for years, at 14 cents per mile. So relatively speaking, the volunteers are a little better off than they were last…

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DEDUCTIBLE JOB HUNTING EXPENSES

DEDUCTIBLE JOB HUNTING EXPENSES

In this difficult economy, don’t forget that many “job hunting” expenses may be deductible, assuming you’re looking for new work in the same line of business in which you’re presently employed.  Some deductible items are: Resume production costs Travel expenses Placement agency fees IRS has some good publications with more info:  Pubs 529, 463 and 4128.    

IMPROPER GIFT TAX RETURN DISCLOSURE CARRIES RISK

IMPROPER GIFT TAX RETURN DISCLOSURE CARRIES RISK

Recent word from IRS Field attorneys suggests that improper disclosures on a gift tax return equates to an indefinite period of limitations, rather than the usual three years.  Failure of a taxpayer to properly disclose gifts (transfer of interests in two partnerships) to his daughter, including the identity of one of the partnerships, and failure to provide an adequate description of the valuation methodology tripped up the taxpayer in question. A transfer will be considered adequately disclosed only when: The…

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