Vernoia, Enterline + Brewer, CPA LLC

Archive for the ‘Tax deduction’ Category

Still Time to Contribute to an IRA for 2016

The IRS reminds taxpayers that they still have time to contribute to an IRA for 2016 and, in many cases, qualify for a deduction or even a tax credit. Available since the mid 70s, individual retirement arrangements (IRAs) enable employees and the self-employed to save for retirement. Contributions to traditional IRAs are often deductible, but distributions, usually after age 59½, are generally taxable.

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Medical and Dental Expenses May Impact Your Taxes

Medical expenses may trim taxes. Keeping good records and knowing what to deduct make all the difference. Here are some tips to help you know what qualifies as dental and medical expenses.

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Four Tips for Donating Artwork to Charity

Individuals may want to donate artwork so it can be enjoyed by a wider audience or available for scholarly study or simply to make room for new artwork in their home. Here are four tips for donating artwork with an eye toward tax savings. (more…)

DAFs Bring an Investment Angle to Charitable Giving

If you’re planning to make significant charitable donations in the coming year, consider a donor-advised fund (DAF). These accounts allow you to take a charitable income tax deduction immediately, while deferring decisions about how much to give — and to whom — until the time is right. (more…)

Chief Counsel rules that fines paid to FINRA are not deductible

finraIRS Chief Counsel has determined that the Financial Industry Regulatory Authority (FINRA) is an entity serving as an agency or instrumentality of the government of the United States. As such, fines paid to FINRA are not tax deductible. Under the Securities Exchange Act, FINRA is required to conduct enforcement and disciplinary proceedings relating to compliance with federal securities laws, regulations, and FINRA rules promulgated pursuant to that statutory and regulatory authority. (more…)

Business owners denied expense deduction for advances to their corporation

Business owners, especially those who operate in corporate form, need to realize that there is a difference between advancing business funds to cover anticipated expenses and being entitled to a deduction for those expenses. A married couple who held partial interests in a corporation learned that difference to their detriment recently in the Tax Court (Aleamoni, TC Summary Opinion 2016-21) when they were not allowed to deduct advances they made to the corporation as business expenses on their Schedules C. The court held that the advances were investments and not expenses the taxpayers incurred in carrying on a trade or business. (more…)

2016 auto and truck maximum FMVs for cents-per-mile

IRS issues 2016 auto and truck maximum FMVs for cents-per-mile/fleet-average valuation

The IRS has issued the maximum fair market value (FMV) amounts that trigger certain valuation rule for employers calculating fringe benefit income from employer-provided automobiles, trucks, and vans first made available for personal use in 2016 (Notice 2016-12). (more…)