Posts Tagged ‘IRS’

March 30th, 2012

The Daily Deals Taxation Debate

The Tax Club, TTC, New York, New York City, Tax Preparation, Tax Advice, Financial Services, Tax Code, Tax Law, IRS, Social Media, Daily Deals, Small Business, Startups, Entrepreneur, Groupon, Living Social, Social Media, Marketing, Couponing

How many of you have purchased a Groupon, LivingSocial, or some other sort of daily deal voucher? Did you notice that you did not pay any sales tax on your purchase? Probably not, but don’t get too excited, this does not mean that you get to bypass the taxman. It does poses the questions, on what amount should taxes be paid and at what stage in the process? Should consumers who purchase and use daily deals be required to pay sales tax on the face value of the coupon or the dollar amount that was actually paid for it? Meaning, if a deal is purchased for $50, but is worth $100, which amount should the buyer be taxed on? And should this tax occur at the time of purchase, or redemption?

What seems to be a minor issue can actually have a significant impact on your wallet. According to Vertex,… Read the rest

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March 28th, 2012

Deciding Which Business Structure Is Right for You

Entrepreneurs, Startups, The Tax Club, New York, New York City, Tax Preparation, Financial Services, Tax Advice, Small Business, Incorporation, LLC, S Corporation, C Corporation, IRS, Tax Code, Business Structure, Business Planning

 

Starting a business? One of the first steps you will take towards establishing a solid business plan and foundation will be legally incorporating your business entity. Determining which legal structure is right for you and your startup is crucial, and will play a significant and consistent role throughout the duration of your company’s lifetime, especially when it comes to how your business will be taxed. The three most popular forms for small businesses are C corporations, S corporations, and Limited Liability Companies, more commonly known as LLCs. Every entity type has their advantages as well as disadvantages. It is important that you are knowledgeable on how each type will affect your company structure, as well as your bottom line.  Give us a call today if you would like for one of our accountants to walk you through this process!

 

C Corporations: When a small business incorporates, it automatically… Read the rest

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October 25th, 2011

Important Changes in Small Business Tax Breaks For 2012

The Tax Club, New York, New York City, Small Business, IRS, Tax Breaks, Tax News, Tax Tips, Tax Code, Tax Preparation, Financial Services

For all of you small business owners who have benefitted from the Section 179 deduction and/or bonus depreciation, we have some taxing (no pun intended) news for you. If you have not heard yet, these two tax breaks, which have been available to qualified small business owners throughout the recession, are about to dramatically shrink. These breaks were approved by Congress with hopes of creating economic stimulation, and making it easier for small businesses to grow and hire. What does this mean for small businesses that have been benefitting from these tax breaks? For one thing, year end tax planning for 2011 will be crucial.

Section 179 allows a small business to deduct upfront as opposed to depreciating the costs of pricey equipment. For example, computers, manufacturing machines, furniture, etc. As of now, the break allows you deduct up to $500,000. In 2012, that number will decrease to $125,000, and… Read the rest

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October 7th, 2011

Hugh Hefner’s Ex Bride-to-Be is About To Auction Off Her 3.39 Carat Diamond: Who Will Pay The IRS?

The Tax Club, New York, New York City, Small Business, IRS, Tax Preparation, Financial Services, Tax Tips,

I’m sure by now you have all heard the not so happily ever after love story of Hugh Hefner and Crystal Harris. If you haven’t, Hefner proposed to Harris on Christmas Eve of last year with a 3.39 carat diamond engagement ring, only for Harris to call off their wedding in mid June. Now, Harris is selling her rock, “it just brings back too many memories,” she says. The ex -bride-to -be is likely to reap in a hefty sum of money in exchange for the diamond, Christie’s is auctioning the piece, and expects it to go for around $20,000-$30,000. But who will receive all the profits? Does the tax man get a piece of the profit?

The answer to that question would be, of course. But whose responsibility will it be to pay up? If the ring had not been given to Harris as a gift, and she had… Read the rest

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September 8th, 2011

How To Turn Someone In To The IRS- And Get Rewarded For It!

The Tax Club, New York, New York City, IRS, Tax Code, Tax News, Tax Tips, Small Business, Start ups, Tax Preparation, Financial Services

Are you irked by listening to colleagues brag on how they have successfully cheated on their tax returns? Are they benefitting from the extra discretionary cash flow, while you, an honest, law-abiding citizen, are strapped paying off Uncle Sam? Well, if tax cheaters get the best of you, the IRS has a proposition for you! The agency is giving citizens the opportunity to turn in lawbreakers, and in exchange, receive a percentage of recovered tax dollars; the larger the sum the larger your reward!

The government has been rewarding those who turn in companies or individuals who disregard government policies since 1863, with the passing of The False Claims Act. Since the existence of the income tax, there has been a similar program put into place by the IRS, but reward payments were very small and the “bounty hunting” idea did not settle well with agency officials. Well, that all… Read the rest

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August 30th, 2011

Back To School Tax Tips from The Tax Club

The Tax Club, New York, New York City, IRS, Tax Tips, Tax Preparation, Tax Advice, Small Business

It’s that time of the year again, back to school! A rather expensive time for most; tuition, school supplies, uniforms, books, are just among some of the many costs associated with returning to the classroom. Whether you are a student paying your own way through college, or a parent paying tuition for a private school, at The Tax Club we want to inform you of certain tax benefits which may be available to you. Just remember, keep those receipts!

 

Private Kindergarten and Upper Grades:

Generally, the cost of private schooling is not deductible, however, for private kindergarten and some upper grades for students up to the age of 13, there are some exceptions.  If you can separate the education costs of the program from the child care components, you may be able to qualify for deductions. The younger your children are, the easier this is.

 

Before or After… Read the rest

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July 26th, 2011

Solving America’s Obesity Problem With…Taxes?

The Tax Club, New York, New York City, Small Business, Tax Talk, Tax News, Tax Preparation, IRS, Tax Code

Can America’s obesity problem be controlled through taxation? Over the past 20 years, our country has seen a significant increase in obesity and the rates only continue to rise. About one third of US adults (33.8%) and approximately 12.5 million children and adolescents (17 %, between the ages of 2-19 years old) fall in the obese category. Taxes are many politicians’ answers to various problems, but is it an answer to public health? There are many people who seem to say yes. Many believe that taxing unhealthy foods and subsidizing foods that are good for you might make a demographical difference when it comes to our nation’s weight problems.

Mark Bittman, of the New York Times, one of the most well-known and publicized advocates of this proposal, claims the following:

 

Simply put: taxes would reduce consumption of unhealthful foods and generate billions of dollars annually. That money could be… Read the rest

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July 14th, 2011

The Tax Implications of Jeter’s 3,000th Hit

The Tax Club, New York, New York City, IRS, Tax Tips, Tax Code, Small Business

Picture this: it’s a gorgeous summer night, you are in the stands of Yankee Stadium cheering on your favorite team, and Derek Jeter breaks the MLB record with his 3,000th hit, and it’s a homerun that magically lands in your hands. If you are a Yankee fan that is pretty much one of the best nights of your life. Twenty-three year old Christian Lopez, of Highland Mills, NY, happened to be the lucky fan in the stands that night; offered $250,000 on the spot for Jeter’s 3,000th hit, Lopez turned it down and returned the ball to the all-star. What would you have done? Don’t feel guilty if you say you would’ve sold it, we are pretty sure most of America would agree with you.

It’s not as though Lopez didn’t get anything out of this. To reward him for returning the ball, the Yankees handed over Champions Suite tickets… Read the rest

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July 11th, 2011

IRS Brings Contributions Investigation to a Screeching, Unexpected Halt

The Tax Club, New York, New York City, IRS, IRS News, Tax News, Tax Tips, Small Business, Tax Preparation

That’s right, you read the headline correctly. The IRS has shockingly and unexpectedly announced that they will discontinue the investigation into a group of donors who made contributions to nonprofit advocacy groups. There is widespread speculation of these donations being a means to underwrite advertising and other political expenses, as well as being connected to political agendas. For now the agency will not enforce a tax on large contributions received by these organizations; the issue will be put to rest while the IRS studies the circumstances. “This is a difficult area with significant legal, administrative and policy implications with respect to which we have little enforcement history,” wrote Steven T. Miller, the I.R.S. deputy commissioner for services and enforcement.

The main focus of the investigation was to determine whether or not donors to specific tax exempt organizations, filed under 501(c) (4) of the Tax Code, are liable for gift tax… Read the rest

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June 30th, 2011

IRS Increases Mileage Rate

The Tax Club, New York, New York City, IRS, Tax Tips, Tax Advice, Tax News, Tax Preparation, Small Business

If you use your car for business, we have good news for you! Starting July 1, tax deductions will be allowed for up to 55.5 cents a mile, a 4.5 cent increase from the previous 51 cents per mile deductions allowed in the first 6 months of this year. However, this uncommon midyear change will be applicable to miles which were driven in these first 6 months (January 1 to June 30) as well.

Many corporations, along with the federal government, use this rate to reimburse their workers for mileage, giving these employees the right to not report it as income, being that the payments do not exceed the IRS limit.  And guess what? This good news is not just applicable to those of us who use our vehicles for business, but if driving is part of your medical or moving expenses, you can now deduct 23.5 cents per mile… Read the rest

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