Vernoia, Enterline + Brewer, CPA LLC

Archive for December, 2015

Happy Holidays

Best Wishes for Happy Holidays from VEB CPA Accountants + Adviso

Best Wishes for Happy Holidays from VEB CPA Accountants + Advisors

Real estate developer cannot use home construction contract method to defer income

A real estate developer could not use the home construction contract method to defer income under Code Sec. 460(e), the Court of Appeals for the Fifth Circuit has found. Affirming the Tax Court, the Fifth Circuit held that the developer should use the percentage of completion method (PCM) to compute gains from sales of real property under long-term construction contracts. (more…)

IRS announces official 2016 inflation adjustments, pension COLAs

Inflation and cost of living (COLA) adjustments to a lengthy list of Tax Code provisions for 2016 have been released by the IRS. Despite a low rate of inflation during 2015, many provisions will increase for 2016. Some provisions are unchanged because of rounding conventions. (more…)

Treasury launches myRA accounts nationwide

After successful completion of a pilot program, the U.S. Treasury launched the myRA retirement savings account nationwide. President Obama created the myRA program in 2014 and Treasury conducted a year-long pilot program. myRAs are intended to serve as starter retirement accounts for populations underserved by traditional retirement savings vehicles. (more…)

Printing and publishing equipment tax in NJ

NJ – Printing and publishing industries publication revised

The New Jersey Division of Taxation has revised a publication that discusses the sales and use tax treatment of printing and publishing industries. The New Jersey sales and use tax law specifically exempts from tax the sale of printing and publishing production machinery, apparatus, or equipment used directly and primarily in publishing newspapers. The exemption also applies to the sale of machinery, apparatus, or equipment used by a commercial printer in the production of tangible property for sale. Commercial printers include those businesses engaged in periodical, book, manifold business form, greeting card, or miscellaneous publishing and typesetting; photoengraving; electrotyping and stereotyping; and lithographic platemaking. Printers and publishers may purchase machinery and equipment without paying sales tax by issuing an Exempt Use Certificate (Form ST-4) or Streamlined Sales and Use Tax Agreement Certificate of Exemption (Form ST-SST) to their supplier. Supplies used with the machinery as well as wrapping equipment and supplies are also exempt when purchased with Form ST-4 or Form ST-SST. However, charges for installation or maintenance contracts for such machinery and equipment are taxable. Publication ANJ-18, New Jersey Division of Taxation, November 23, 2015

 

Protecting Americans From Tax Hikes Act Of 2015

The House and Senate passed the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). President Obama is expected to sign the bill as soon as it reaches the White House. The Act does considerably more than the typical tax extenders legislation seen in prior years. The following are some, but not all, of the tax extenders included in the PATH Act: (more…)

How do I compute payroll taxes

A business that has employees must withhold income taxes on payments to each employee. Each employee must first fill out Form W-4, Employee’s Withholding Allowance Certificate, and provide it to the employer. On the form the employee can claim exemptions, such as the personal exemption or an exemption for a spouse or child, and determine the number of withholding allowances for the employee. Based on that information, the employer calculates the employee’s income tax withholding for the year. (more…)