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2015 Tax Planning

Taxonomy: 
Tax & Accounting
Body: 

For high net-worth individuals, tax planning requires a proactive approach to obtain the best results.  Economic and legislative changes are uncertain as it pertains to the tax code and any expiring benefits.  There is no certainty 2015 will see the same extenders 2014 did and there are many steps you can take now to protect you and your businesses assets.  In taking this approach, the decisions you make now should be instrumental in preserving your wealth – not just for your own future, but for that of the next generation as well.

 

IRS Scams in 2015

Taxonomy: 
Tax & Accounting
Body: 

Each year the IRS releases its Dirty Dozen list of tax scams.  Though the entire list has 12 scams on it, we want to highlight the three most common that our clients are facing.  

Identity Theft

IRS Budget Cuts

Taxonomy: 
Tax & Accounting
Body: 

Tax season officially kicked off January 20, 2015, as scheduled, even with late tax extender law passage on December 19, and cuts in IRS funding.  Those filing paper returns this year, however, will have their refunds delayed an additional week or longer due to the cuts in funding.  We are also told the wait times if you call the IRS are expected to be much longer this tax season.  This is the lowest level of funding since 2008, and the lowest since 1998 when inflation is considered, according to IRS Commissioner John Koskinen. 

Tax Outlook - 2015 And Beyond

Taxonomy: 
Tax & Accounting
Body: 

While both the President and Congress agree action is needed on corporate tax reform, the two seem far apart on how to bring changes about.  The sides seem closer to an agreement to change business taxation rules, but it hard to do that without addressing individual taxation, or disadvantaging sole proprietorships, and pass through entities like LLCs, S-corporations and partnerships.  One plan would create a special tax rate for business income of individuals similar to how there are separate rates for dividends and capital gains.   The goal is to equalize the top rate f

2014 Tax Extenders

Taxonomy: 
Tax & Accounting
Body: 

For those that may have missed it, the President signed into law a “tax extender” bill in December that extended a number of existing tax benefits and credits that would have otherwise expired as of 12/31/13.  The law extended them only through the 2014 tax year.  For the 2015 filing year most of these extenders will probably be eliminated.

Some of the extensions that were restored which may benefit you include:

2014 Tax Extenders

Taxonomy: 
Tax & Accounting
Body: 

In December 2014, Congress passed a tax extender bill that was then signed by the President, which extended tax write-off provisions for tax filing year 2014.  Previous to this Bill, these provisions were scheduled to expire on 12/31/13.  

Some of the extensions that were restored which may benefit you include:

  • IRC §179 expensing of business purchased equipment and/or software from $25,000 to the previous $500,000 value and raising the purchase amount limit from $200,000 to $2,000,000.

 

The IRS Wants to Know Who You Paid

Taxonomy: 
Tax & Accounting
Body: 

As we move through the first few weeks of January, it is important to take critical steps regarding any people or businesses you have paid throughout 2014 to decide if a 1099 should be issued.  Preparation for Form 1099 for the year 2014 has already begun.  Should you need assistance preparing this form see the information below for clarification. 

To prepare and complete Form 1099, you will need the following information for each recipient:

Luxemburg Tax Schemes

Taxonomy: 
Tax & Accounting
Body: 

Over 340 international companies have made secret deals in Luxemburg to save billions of dollars in taxes while maintaining little presence in the country based on leaked documents tied to the transactions.  These large companies can save in taxes by creating accounting and legal structures in Luxemburg to effectively pay tax rates less than 1 percent of the profits shifted in this country.  The leaked documents included diagrams of the complicated business structures and hundreds of pages of private tax rulings.  These letters asked for favorable tax treatment for the corpor

State of New Jersey - New Legislation 2014

Taxonomy: 
Tax & Accounting
Body: 

Refunds of Partnership Payments on behalf of Nonresident Partners:

In response to the Tax Court decision in BIS LP, Inc. v. Director, Div. of Taxation, 2014 N.J. Tax (App. Div. Apr. 11, 2014), the new law clarifies the circumstances in which the tax paid by a partnership on behalf of its nonresident partners may be claimed.

In 2002, legislation was enacted to require NJ partnerships to make payments on behalf of their nonresident partners.

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