Author Archives: pg

Estate Planning

One of the best but sometimes least used estate planning technique is the annual gift tax exclusion. Under the provisions of this exclusion you may gift up to $13,000 per individual per year tax free (or $26,000 if married filing … Continue reading

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Domestic Help

Domestic Help If you employ domestic help and pay them over $1,000 during the year, the amount you pay them is subject to FICA and FUTA. Although you do not need to file payroll returns with the IRS quarterly, you … Continue reading

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Travel Expenses

If you go on a trip that is primarily for business, and the destination is within the US, the full cost of travel to and from the destination is deductible even though not all of your time was spent on … Continue reading

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Charitable Contributions

Charitable contributions of $250 or more are deductible only if there is written proof of the deduction from the organization receiving the donation. The written proof should be obtained at the time the donation is made.

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Prepayment of real estate taxes in 2017

Due to the limitation on the deduction for real estate and state and local income taxes (otherwise known as the SALT deduction) to $10,000 in 2018, people are thinking that they can prepay these taxes in 2017 while there is … Continue reading

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New Changes in Tax Laws

On December 20th new changes in tax laws were finalized and passed both houses in Congress. Be careful about relying on what you have read that is prior to this date, as there were a number of changes right up … Continue reading

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Partnership Tax Returns: Late Filing Penalties and Exceptions

The penalty for late filing of the partnership return is $195 per partner per month or part of a month for which the partnership information return is filed late, with the penalty capped at 12 months. The penalty is waived … Continue reading

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Section 179 Limitations & Carryforwards

Generally, the Section 179 deduction is limited to the income of the business before consideration of the deduction (i.e. you generally cannot take the Section 179 deduction if it will generate a loss.) However, if your Section 179 deduction is … Continue reading

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Form 1099s for nonemployee compensation and other information returns

For 2016 and later years the penalty for not filing a Form 1099 when you should have is $250 per form. If you file it late the penalty is $15 if filed within 30 days after the due date. If¬† … Continue reading

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Property subject to depreciation changed starting in 2016

Prior to 2016 property that was generally required to be capitalized and depreciated was property with a cost of $500 or more. Starting in 2016 this amount was increased to $2,500.

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