September 2018 E-Newsletter |
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FIRM NEWS |
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Accounting Today and Long Island Business News Reports on Merger to Form KVLSM LLP
Accounting Today and Long Island Business News recently reported that Katz Viola Lebenhart & Mauro, LLP and Lipner, Sofferman & Co., LLP have merged to form KVLSM LLP.
To read the Accounting Today article, click here.
To read the Long Island Business News article, click here.
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CPA NEWS |
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Charitable Contributions and State Tax Credits
IRS issue proposed regulations
The proposed regulations issued are designed to clarify the relationship between state and local tax credits and the federal tax rules for charitable contribution deductions. Under the proposed regulations, a taxpayer who makes payments or transfers property to an entity eligible to receive tax deductible contributions must reduce their charitable deduction by the amount of any state or local tax credit the taxpayer receives or expects to receive.
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Qualifying Relative and Exemption Amount
IRS issues notice with guidance
Notice 2018-70 clarifies the definition of who is a "qualifying relative" for purposes of the new $500 credit for dependents and determining head of household filing status for years in which the exemption amount is zero — taxable years 2018-2025.
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Dual Benefits
Employee benefits are often beneficial for both the companies that provide them and employees who receive them. When one of those benefits is paid medical or family leave, the loved ones of employees benefit, too — often at a crucial time in their lives.
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Pay Healthcare Costs With Pre-Tax Dollars
We all know health insurance costs are growing, but do you realize by how much? According to the Peterson-Kaiser Health Tracker, healthcare costs rose 21.6% while general inflation grew 7.3% since the end of 2007. With no end to rising healthcare costs in sight, Health Savings Accounts (HSAs) can help mitigate some of the pain.
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How To Draw Retirement Income
When you retire, you might draw income from a variety of sources. Which come first and how will taxes play a part? Here's a look:
Tax-Free Income
If you contributed to a Roth IRA (or Roth 401(k) plan), your forward thinking will result in a delightful retirement reality — tax-free income.
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Services
- Income Tax Preparation for all types of businesses and individuals
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Additional Updated Information
August 2018 E-Newsletter
July 2018 E-Newsletter
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Additional Updated Information
Q: With job competition keen, I'm considering hiring someone I can train. Are there tax breaks for that?
A: Your business receives a tax deduction for educational assistance and training expenses given to employees. In addition, your business may receive the Work Opportunity Tax Credit if it hires someone who was long-term unemployed, receiving food stamps, is an ex-felon, a disabled veteran or other classifications of potential employees. The Work Opportunity Tax Credit is first figured on Form 5884 after requesting certification with IRS Form 8850, and then becomes a part of the general business credit claimed on Form 3800, General Business Credit. Talk to your tax professional to learn more.
Q: I am planning to sell my home and will move into a rental property. Will I owe taxes on my profit?
A: The answer depends on how much and for how long. A single person may exclude up to $250,000 of profit ($500,000 for couples filing jointly) on the sale of a primary residence. To qualify, you must have owned and lived in the home for at least two of the preceding five years. You can use this tax exclusion as many times as you want, but not within two years of each other.
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SHORT BITS |
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FEWER AMERICANS RECEIVE GUARANTEED INCOME.
Just as more Americans are entering their retirement years, the number of Americans who get guaranteed retirement income is shrinking. According to the IRS, the number of tax returns reporting pension or annuity income fell from 28.4 million in 2015 to 28.05 million in 2016, a 1.2% drop. Although the number of people receiving this income fell, total income from these sources increased 0.4%.
UNEMPLOYMENT IS DOWN, BUT HOURLY WAGES ARE UP.
As of May, the unemployment rate fell to a low 3.8%, as reported by the Bureau of Labor Statistics. May saw 223,000 new jobs, and average hourly earnings for all employees on private nonfarm payrolls rose by 8 cents to $26.92. Average hourly earnings since May 2017 increased by 71 cents, or 2.7%.
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NEW MEDICARE CARDS.
Starting in April, the Centers for Medicare & Medicaid Services (CMS) began rolling out new Medicare cards with unique numbers, replacing cards that used Social Security numbers as identifiers. This is expected to reduce the chances of identity theft. If you haven't received your card yet or have questions, contact Medicare at 1-800-MEDICARE (1-800-633-4227).
CREDIT FREEZE LAW BEGINS THIS MONTH.
Starting September 22, you may obtain a free credit freeze, thanks to a new federal law. You'll also be able to unfreeze your credit at no charge, and put a freeze on a minor child's credit. Previously, states allowed credit reporting companies to charge customers for these services. A credit freeze can prevent identity thieves from opening new accounts in your name. |
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