Tax FOMO: Are You Losing $1,000s in Tax Savings?
Posted on February 13th, 2019
The Power of Hiring an NYC CPA (And What Could Happen if You Don’t)
You know about FOMO or “fear of missing out” when it comes to skipping a good NYC party. You should also have a very healthy fear of losing out on tax savings. How? By trusting anyone other than a qualified NYC CPA to handle your taxes!
Now, if you have a very simple tax return, it’s perfectly fine to go the do-it-yourself route. However, if you’re a small business owner, make over six figures, or have multiple investments, at least meet with an NYC CPA – and do it ASAP…before the tax year really gets going. Read More…
IRS Creates a New “Safe Harbor” for Section 199A Rental Properties
Posted on February 8th, 2019
Safe harbor! It sounds wonderful.
Obviously, you are going to be comfortable in a safe harbor. And if you said you don’t want comfort, you might be thought of as a little loony.
You may sense that we are not jumping with joy about this new safe harbor for Section 199A rental property. It’s true; our joy quotient is a little low on this safe harbor because of the work involved.
Our feeling is that you did this work, so your property is a trade or business with no safe harbor needed. Of course, the safe harbor gives you comfort, so we need to examine what’s involved.
With the new safe harbor, the IRS thinks it is your new friend when it comes to claiming the Section 199A 20 percent tax deduction on your rental real estate profits. Read More…
Penalty Relief for Withholding, Estimated Tax Shortfalls
Posted on February 7th, 2019
The estimated tax penalty has been waived for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year; however, there is a catch: the penalty is only waived for taxpayers who paid at least 85 percent of their total tax liability during the year through federal income tax withholding, quarterly estimated tax payments or a combination of the two. Typically, a taxpayer must pay 90 percent to avoid a penalty. Read More…
9 Ways to Avoid the Penalty on Early Distributions
Posted on February 6th, 2019
Many people use IRAs, SEP Plans, SIMPLE IRA plans, and employee-sponsored retirement savings plans such as the 401(k) to save money for their retirement years, but what if you need to tap that money before age 59 1/2? The bad news is that you generally have to pay a 10 percent penalty for early withdrawal of your funds. While that may seem unfair (after all, most of it is probably your money), you need to remember that the purpose of these types of plans is to save money for the years when you are no longer working. Read More…
Five Facts About the Opportunity Zone Tax Incentive
Posted on February 5th, 2019
Providing tax benefits to investors who invest eligible capital into distressed communities throughout the U.S. and its possessions, Qualified Opportunity Zones (QOZs) were created under the Tax Cuts and Jobs Act of 2017 to spur economic development and job creation. If you’re considering investing in a QOZ, here are five facts you should know: Read More…
Seven Common Small Business Tax Myths
Posted on February 4th, 2019
The complexity of the tax code generates a lot of folklore and misinformation that could lead to costly mistakes such as penalties for failing to file on time or, on the flip side, not taking advantage of deductions you are legally entitled to take and giving the IRS more money than you need to. With this in mind, let’s take a look at seven common small business tax myths. Read More…
Who Should File a 2018 Tax Return? Are You Eligible for a Tax Refund?
Posted on February 2nd, 2019
Most people file a tax return because they have to, but even if you don’t, there are times when you should—because you might be eligible for a tax refund and not know it. The six tax tips below should help you determine whether you’re one of them. Read More…
Tax Filing Season Begins
Posted on February 2nd, 2019
January 28, 2019, marked the start of this year’s tax filing season, and it’s the first time taxpayers will be filing under the new tax reform laws, most of which became effective in 2018. Complicating matters is a newly revised Form 1040, U.S. Individual Income Tax Return, as well as the partial shutdown of the federal government. With more than 150 million individual tax returns expected to be filed for the 2018 tax year, here’s what individual taxpayers can expect: Read More…