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2016 Year-End Tax Planning Guide

  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 factor that compounds the already complicated planning challenges is the outcome of the Presidential election. We could likely see some significant tax…

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Year-End Tax-Planning Moves for Businesses & Business Owners

  Businesses should consider making expenditures that qualify for the business property expensing option. For tax years beginning in 2016, the expensing limit is $500,000 and the investment ceiling limit is $2,010,000. Expensing is generally available for most depreciable property (other than buildings), off-the-shelf computer software, and qualified real property-qualified leasehold improvement property, qualified restaurant…

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Year-End Tax Planning Moves for Individuals

Postpone income until 2017 and accelerate deductions into 2016 to lower your 2016 tax bill. This tried and true strategy could be even more meaningful in light of the possible proposed tax reform.  This strategy may enable you to claim larger deductions, credits, and other tax breaks for 2016 that are phased out over varying…

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Doing Business Out of State? State Tax Nexus Explained

  If you are a business owner operating in multiple states, you could face tax obligations without even knowing it.  Determining whether these states have a legal right to tax your out-of-state business depends on whether your business has “nexus” with the state.  For state tax purposes, the term “nexus” describes the amount and degree…

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IRS Alerts Payroll and HR Professionals to Phishing Scheme Involving W-2s

  The Internal Revenue Service today issued an alert to payroll and human resources professionals to beware of an emerging phishing email scheme that purports to be from company executives and requests personal information on employees. The IRS has learned this scheme — part of the surge in phishing emails seen this year — already…

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U.S. Supreme Court Rules in Favor of Taxpayer in “Comptroller v. Wynne”

A divided U.S.  Supreme Court ruled that Maryland’s income tax law is unconstitutional because it does not provide a full tax credit to residents for income tax paid outside the state, a ruling likely to cost Maryland counties and localities across the country millions of dollars in revenue. A Howard County couple challenged the law, arguing…

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Keeping TRAC of Tip Income: Tip Compliance

Participating in an IRS Tip Agreement is like having an audit insurance policy. If your business employs workers who earn a substantial portion of their income from tips (bartenders, restaurant or hotel workers, beauticians, casino employees and so on), then a tip agreement essentially provides you with immunity against an IRS audit. The IRS established…

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Congress-passed bill averts fiscal cliff tax consequences

By Priya Patel In the early morning hours of Jan. 1, 2013, the Senate, by a vote of 89-8, passed H.R.8, the “American Taxpayer Relief Act” (the Act). Late on that same day—hours after the government had technically gone over the “fiscal cliff”—the House of Representatives, by a vote of 257 to 167, also passed…

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