Foreign Bank Account Reporting

This won’t apply to too many individuals, but there are extremely high potential penalties involved, so it’s worth a quick read. If you don’t already know this, the IRS requires individuals and businesses with foreign assets above certain thresholds to report them every year. There is no corresponding tax calculation, it’s simply a reporting requirement. […]

Inventory

I hope that 2017 is off to a good start for everyone. Of course with the new year comes thoughts of taxes. To hopefully make tax time just a little easier, I wanted to give a quick reminder for those of you who keep inventory. If you have items you sell at retail or wholesale, […]

Open Enrollment

Just a quick reminder that anyone without health insurance during 2017 can get stuck with a pretty heft penalty. This year it’s 2.5% of your household income (or $695 per adult, whichever is higher). In order to avoid next year’s penalty, make sure that you have a health plan set up before the end of […]

Year-End Tax Tips

As year-end is fast approaching, I wanted to give you a few tips to lower your 2016 tax bill. Avoid underpayment penalties Make or adjust your quarterly estimated payments to the IRS by using Form 1040-ES or, if an employee, adjusting your W-4 withholding. Ask your employer for a new W-4 to adjust your allowances […]

Unreimbursed Partnership Expenses

For those of you with partnerships, there’s a subtle but important rule that I wanted to bring to your attention. If you’re a partner and you’re used to claiming expenses related to the partnership on your personal return (business mileage and home office expenses are common, for example), the best solution is to have the […]

Accounting Capitalization Policy

Technically the IRS requires businesses to capitalize (depreciate) all assets that have a life of longer than a year. Which might not sound that bad, but it would create a lot of headaches for smaller businesses trying to keep track of everything. Imagine maintaining a depreciation schedule with staplers, chairs, etc. Luckily the IRS recently […]

Individual Mandate Penalty / Open Enrollment

Anyone without health insurance during 2014 is probably already familiar with the 1% of income penalty assessed for not having insurance. What you might not know is that the penalty increases in 2015 and 2016, when it becomes 2% and 2.5%, respectively. In order to avoid next year’s penalty, make sure that you have a […]

Health Savings Accounts

Health savings accounts can be a useful tax savings tool. They were first created around 10 or 12 years ago. Essentially they allow individuals to set money aside to pay for doctor co-pays, prescriptions, dental visits, eyeglasses, and other medical expenses tax-free. In order to qualify, you must have health insurance that qualifies as “high […]