2012-2013 Tax Rule Changes – Tax Liabilities and Tax Planning

The Questions Are When and How – Lock-in Favorable 2012 Rules Now Tax Rules Will Change in 2013 By Carl D. Harper, CPA, Pulakos CPAs Tax Partner Last year, I described 2011 as an in-between time, a time in the “eye of the storm.” This year, we find ourselves on the precipice of a fiscal and tax-planning cliff. No matter … Read More

Construction Accounting – How to Account for Costs of Construction Contracts

Timely and accurate cost accounting can assist in managing projects, costs and cash flow. By Jake Dopson, assurance manager, CPA, CCIFP One of the most critical accounting functions that construction contractors must consider is the appropriate processes and methodologies used in accounting for costs of construction. Not only do contractors have to consider recording such costs accurately within their financial … Read More

Tax Services – 990 and Governance in Nonprofit Organizations

Though not a new requirement, the 990 form highlights governance issues for nonprofit boards of directors By James M. Haynes, CPA Since 2008, the Internal Revenue Service has highlighted good governance practices of tax-exempt organizations on the Form 990. This form is a filing requirement for nonprofits, nonexempt charitable trusts, and section 527 political organizations. It asks questions regarding the … Read More

Are All Activities of a Nonprofit Exempt from Taxation?

Boosting revenue can be tricky for nonprofits. Could the activity be considered taxable? By Robert A. De Pasquale, CPA Nonprofit entities have reacted to today’s economic realities by proactively increasing their sources of revenue, whether from seeking more charitable donations or from boosting their program service revenue. When considering whether to expand their sources of revenue beyond these two typical … Read More

2013 Mid-Year Tax Planning

Even before the first dollar of income or deduction hits your return, be aware of the personal information, including Social Security numbers, which is on your tax return. Tax fraud through the use of identity theft tops the IRS 2013 list of tax scams. Tax returns and tax information should be safeguarded. Shredding is the recommended means for disposing of … Read More

Tax Laws of Business Income

Several business provisions in the tax law are available only through 2013. For this reason, it may be prudent to plan to use them by the end of the year. They include: Section 179 expensing of up to $500,000 of new or used equipment when total fixed asset additions do not exceed $2 million for the year  Lesser expensing is … Read More

Deductions from Gross Income

Certain deductions from gross income have been extended only through the end of the year, so it may be prudent to begin identifying opportunities to take advantage of those tax breaks. Among the provisions are: The deduction of up to $250 for K-12 teachers’ expenses The deduction of up to $4,000 of tuition and related expenses (limited at higher income … Read More

Tax Deductions in Retirement Savings

In a typical qualified retirement plan, a tax deduction is allowed for contributions made to the plan, and future distributions are taxable. For a Roth IRA, no deduction is allowed for contributions, but distributions of original contributions and income can be tax free.   Last year, a qualified retirement plan could allow participants to contribute to a Roth account. Plans … Read More

Personal Exemptions

Each taxpayer and dependent claimed on a tax return is allowed a personal exemption of $3,900, which reduces taxable income and the related income tax. A limitation that was in the tax law several years ago has been resurrected for 2013. For single taxpayers with more than $250,000 of adjusted gross income and married taxpayers filing joint returns with adjusted … Read More

Itemized Deductions

Also new for 2013, the total amount of itemized deductions – frequently consisting of state income taxes, real estate taxes, mortgage interest expense and charitable contributions – is reduced for single taxpayers with more than $250,000 in adjusted gross income and married taxpayers filing joint returns with adjusted gross income over $300,000. A taxpayer may not lose more than 80 … Read More