Not All of The Energy Credits Will Continue

Residential Energy Efficient Property Credit (Section 25D)   A credit of 30 percent of the expenditures made by a taxpayer during the taxable year for: qualified solar electric systems; qualified solar water heaters; qualified fuel cell property; qualified small wind energy property; and qualified geothermal heat pumps. The credit for expenditures made for qualified fuel […]

Gambling and Taxes

Do you like to play the slots a couple of times a year in Black Hawk? Do you go to Vegas a few times a year to play some serious Black Jack? Or are you one of the much-smaller groups of people who consider themselves to be professional gamblers?                 Whatever your approach to gambling, […]

You Must Retain Proof of Your Contributions

Documentation of Charitable Contributions   The substantiation requirements for monetary donations of less than $250 remain fairly informal under Sec. 170(f) (17): The donor should maintain a bank record of the contribution or written communication from the donee stating the name of the donee organization, as well as the date and dollar amount of  the donation. […]

You Must Pay Tax on Foreign Income

Foreign Account Tax compliance Act (FATCA), IRS Form 8938 Under the requirements of Sections 1471 through 1474 of the IRC, commonly known as Foreign Account Tax compliance Act (FATCA), certain U.S. taxpayers holding specified foreign financial assets with an aggregate value exceeding $50,000 must report information about those assets on new Form 8938, which must […]

Larger Deductions for Business Owners

Simplified Employee Pension Plan (SEP-­IRA)  IRC § § 402(h) and 415 limit the amount of contributions made to an employee’s SEP-­IRA to the lesser or $53,000 or 25% of the eligible employee’s compensation. 401(K) Limit The 2016 maximum employee contribution is $18,000 Tax Tip: Contribution may be made until the filing of the tax returns, including […]

Charity Tax Breaks If You’re Over 70.5 Years

Direct Charitable Distribution From IRAs Taxpayers over 70 ½ years old can now make $100,000 per year direct tax ­free distributions from their IRAs to their choice of qualified charitable organizations, regardless of their Adjusted Gross Income (AGI). These transfers are neither included in gross income nor deducted on Schedule A. Furthermore, these distributions are […]