Tax Pain Killer

Foreign Bank Account Report (FBAR) extended deadline is on October 15th 2017

2017-09-15T16:05:00.000-05:00

If you did not file your FBAR and you have balances in bank accounts outside USA, you still have time to file your FBAR form by October 15th (actually October 16th this year) with an automatic extension.

R & D Tax Credit is a tremendous tax saving for businesses in IT and other industries

2017-02-02T16:08:00.001-06:00

If you have are operating a business in IT industry or other technology intensive industry you might qualify for R & D Tax Credit and save large amounts in Income Tax or EVEN Payroll Tax for 2017. We are offering a special session on this for IT industry. Please join us

Capital Assets - How much can you expense directly

2017-01-15T20:14:00.000-06:00

Capital assets purchased in business have to be capitalized and depreciated over the life of the asset as allowed under IRS rules. However, under new regulations, the IRS has set safe harbor rules under which acquired items do not need to be capitalized. This safe harbor is $5,000 for taxpayers with an audited financial statement or $2,500 for taxpayers without an audited financial statement.

Partnership Return 1065 deadline now same as 1120S

2017-01-11T13:59:00.001-06:00

Another deadline change for this year is in Partnership and C Corporation returns.

Partnership returns Form 1065 are now due on March 15th, instead of the usual April 15th deadline. This change goes into effect in 2017 and forward.

So, now S Corporation tax return 1120S and Partnership tax return 1065 are due on the same day - March 15th.

Another change is in C Corporation return 1120 - which is now due on April 15th (this year it is April 18th).

NEW DEADLINE for W2 Filing for 2017

2017-01-11T12:44:00.001-06:00

For the first time, businesses this year must file W2 wage reports with IRS by January 31st. This is a major change compared to past when they were not due until end of February and even end of March. This year, and going forward, the deadline is January 31st. This is the same deadline that applies for employees. So, businesses must provide W2s to employees by January 31st and must file with IRS by the same date. Same deadline change applies to 1099s for 2017 and going forward.

Cost Segregation Helps in Saving Taxes - Big League

2016-12-23T09:39:00.002-06:00

Change in Partnership Form 1065 Tax Filing Deadline

2016-12-22T18:04:00.000-06:00

If you file a Partnership Tax Return Form 1065 then there is a major change in its filing deadline. The Partnership Tax Return is now due on March 15th, 2017. This is the new deadline for Partnership Tax Returns going forward.

Make sure you don't miss this deadline. There are some not-so-pleasant penalties for not filing the partnership returns on time. If you are not able to file it by March 15th, 2017, you can file for an extension until September 15, 2017.

Major Filing Date Change for 2017 - Foreign Bank Account Reporting

2016-12-21T19:29:00.001-06:00

There is a major change in filing deadline in 2017. This one is for Foreign Bank Account Reporting also known as FBAR. This report has always been due on June 30th of each year. For the first time, the deadline has now changed to April 15th.

However, The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) announced that all taxpayers will get an automatic extension for FBAR to October 15th each year. In 2017, the extended deadline is October 16, 2017.

Postpone Income if you can - last chance to do that

2016-12-12T18:08:00.000-06:00

With all the big talk about lower taxes in 2017 and beyond with the new US Administration, there are some strategies that are really important.

You should have lower taxable income in 2016 and higher in 2017, so you pay low taxes in 2016 with lower income and pay lower taxes in 2017 because of low tax rates, even if your income is higher.

So, one of the ways you can do that is by postponing income as much as you can. On individual level, we pay taxes on cash basis. A lot of businesses operate under cash basis. If you are a cash basis tax payer then you should try to avoid collecting income for the next 15 days if you don't need to.

This way you will postpone your income into the next year - with hopefully lower tax rates. Of course, it has to be your conviction that the tax rates will go down. If you believe the lower tax rates are not actually coming in 2017, then be careful with postponing your income.

Another idea to consider is to lump your expenses into one year and that is 2016. If you bring in all the expenses, pay them now instead of January or February, and deduct them in 2016.

However, be careful with that strategy. It is not a strategy that works all the time.

We can help you think through this. Please contact us and may be you can save a few thousand bucks in taxes - if you don't mind.

Tax Advice: How long should I keep records?

2016-12-12T11:46:00.001-06:00

How long should I keep records?:

The length of time you should keep a document depends on the action, expense, or event which the document records. Generally, you must keep your records that support an item of income, deduction or credit shown on your tax return until the period of limitations for that tax return runs out.

The period of limitations is the period of time in which you can amend your tax return to claim a credit or refund, or the IRS can assess additional tax.

The information below reflects the periods of limitations that apply to income tax returns. Unless otherwise stated, the years refer to the period after the return was filed. Returns filed before the due date are treated as filed on the due date.

Note: Keep copies of your filed tax returns. They help in preparing future tax returns and making computations if you file an amended return.

Period of Limitations that apply to income tax returns:

Keep records for 3 years if situations (4), (5), and (6) below do not apply to you.
Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return.
Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.
Keep records for 6 years if you do not report income that you should report, and it is more than 25% of the gross income shown on your return.
Keep records indefinitely if you do not file a return.
Keep records indefinitely if you file a fraudulent return.
Keep employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.

The following questions should be applied to each record as you decide whether to keep a document or throw it away.

Are the records connected to property?

Generally, keep records relating to property until the period of limitations expires for the year in which you dispose of the property. You must keep these records to figure any depreciation, amortization, or depletion deduction and to figure the gain or loss when you sell or otherwise dispose of the property.

If you received property in a nontaxable exchange, your basis in that property is the same as the basis of the property you gave up, increased by any money you paid. You must keep the records on the old property, as well as on the new property, until the period of limitations expires for the year in which you dispose of the new property.

What should I do with my records for nontax purposes?

When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes. For example, your insurance company or creditors may require you to keep them longer than the IRS does.

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Year End 2016 Tax Strategy - For Real Estate Investors

2016-12-11T22:00:00.001-06:00

If you invest in commercial real estate then you must take advantage of an excellent tax break that can give you a large deduction for depreciation in the current year and save you taxes. Cost Segregation is an exercise that creates new depreciation classes within your building asset and provides you an opportunity to deduct large amounts of depreciation in the current year.

Even if you have bought the building few years ago and have not deducted the high depreciation you are eligible to deduct, you can catch up in the current year and get a large depreciation deduction in the current year.

This is an excellent opportunity for investors which can generate tremendous tax savings and large amount of positive cash flow in the current year.

We can definitely help with this strategy for 2016.

Pay Low Taxes in 2016 and low taxes in 2017....

2016-12-11T09:41:00.003-06:00

With the new administration taking over in USA with promises of low business taxes, there is hope that most of the business will experience lower tax rates in 2017 and beyond for at least few years.

If there is hope that 2017 onward the businesses will experience low tax rates, then the next 20 days up to December 31, 2016 are very critical for businesses in USA to take some critical steps. If there are some great business strategies that are good for a business and would save taxes, then it would be wiser and smarter economically to implement those strategies in 2016.

If you incorporate some great tax saving strategies in 2016, you will save taxes in a year when the tax rates are very high for corporations. Then, of course, you benefit from lower taxes in 2017 with the new rules, hopefully.

So, take action now and you have low taxes in 2016 and 2017.

Take a look at the next post on www.TaxPainkiller.com on a few strategies that need action from you right away and can save you in thousands in taxes.

Every strategy is titled Year End 2016 Tax Strategy.

What Are the Tax Benefits of Buying a Home? -- The Motley Fool

2016-12-11T09:14:00.001-06:00

What Are the Tax Benefits of Buying a Home? -- The Motley Fool: "Buying a home is a big undertaking, but your new home purchase might help you enjoy a world of tax breaks. If you're a new homeowner, you should know that there are several tax deductions available, some of which can put a fair amount of money back in your pocket. Here are a few tax benefits of homeownership that can really add up."

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Charitable Giving: Year-End Tax Tips You Should Know | Fox Business

2016-12-11T09:13:00.001-06:00

Charitable Giving: Year-End Tax Tips You Should Know | Fox Business: "Year-end tax planning often involves doing things to reduce your tax bill, and one easy way to get a tax break is to make gifts to charity."

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Paying Tuition in 2017? These Tax Breaks Could Save You Thousands | Fox Business

2016-12-11T09:12:00.001-06:00

Paying Tuition in 2017? These Tax Breaks Could Save You Thousands | Fox Business: "If you're planning to pay tuition in 2017, either for yourself or for a dependent, you may be able to take advantage of one of three valuable tax breaks. The best tuition tax break for you depends on your income and the student's status in school, and here's a quick guide to determine which you qualify for. In order of most lucrative to least, here are the three possibilities."

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Year-end tax planning: Don't wait for year-end - CBS News

2016-12-10T23:16:00.001-06:00

Year-end tax planning: Don't wait for year-end - CBS News: "Let’s face it, things get hectic as the year-end approaches. So it’s better to not wait too long to focus on financial transactions you can do now that will result in lowering your tax liability for 2016."

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10 Tax Moves to Make Before 2017 | Fox Business

2016-12-08T21:17:00.000-06:00

10 Tax Moves to Make Before 2017 | Fox Business: "It's too early to prepare your tax return for 2016, but it's not too late to reduce the taxes you'll owe. There are many things you can do throughout each year and at the end of each year that can shrink your tax bill. Here are 10 tax moves you might consider.

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Get Started on Your 2017 Tax Preparation Today -- The Motley Fool

2016-12-07T23:05:00.000-06:00

Get Started on Your 2017 Tax Preparation Today -- The Motley Fool: "Some people don't even start thinking about taxes until April rolls around. However, if you really want to get a handle on your taxes, the smart thing to do is to think about them even before the tax year ends. In fact, there are things you can do right now that will not only make the return you file in early 2017 easier to do but also simplify your tax planning throughout the 2017 tax year. Let's look at some things you can do right now to get off on the right foot."

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Small Business Tax Mistakes You Need To Stop Making In 2017

2016-12-06T21:15:00.000-06:00

Small Business Tax Mistakes You Need To Stop Making In 2017: "Every year, you pay your taxes. Every year, you wonder why you pay certain taxes. And every year, the process never becomes any more enjoyable. While you’re never going to welcome the action of giving the government your hard-earned money, here are several mistakes you can avoid to make the entire process less painful."

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Where Is My Tax Refund? | Fox Business

2016-12-05T23:09:00.000-06:00

Where Is My Tax Refund? | Fox Business: "If you're due a tax refund this year, you're not alone. An estimated 80% of U.S. tax filers receive refunds for overpaying their taxes, and if you're one of them, you're probably itching to find out where your money is. Fortunately, the IRS makes it easy to check on the status of your tax refund. Its handy "Where's My Refund?" tool can help you track your refund once you've submitted your return."

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What Is a Tax Transcript? | Fox Business

2016-12-04T23:10:00.000-06:00

What Is a Tax Transcript? | Fox Business: "Most accounting professionals will tell you to retain a copy of your federal tax return for at least three years, since you never know when you might need it. You might, for example, need a copy of your return when you go to apply for a mortgage or student loan. Furthermore, you might need the information from a previous return to file an upcoming return or respond to an IRS inquiry."

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2016 Tax Brackets -- The Motley Fool

2016-12-02T23:12:00.000-06:00

2016 Tax Brackets -- The Motley Fool: "Thinking about your taxes before April of each year can often pay off, as you might employ some strategies throughout the year or at year-end that will shrink your tax bill. It's good to know what tax bracket you're in, too, as you plan."

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Roths for tax savings, no matter how much money you make

2016-12-01T23:11:00.000-06:00

Roths for tax savings, no matter how much money you make: "Though Roth individual retirement accounts have been around for almost two decades, they are still underutilized, say financial advisors. Just 12 percent of the money invested in IRAs is parked in Roths."

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2017 Tax Deadlines -- The Motley Fool

2016-12-01T09:15:00.000-06:00

2017 Tax Deadlines -- The Motley Fool: "There are three 2017 tax deadlines that are important to know: the regular tax deadline, the extended deadline, and the deadline to file an amended tax return. Here's where all three of these dates land for your 2016 tax return, and what they mean to you."

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5 Smart Tax Moves To Make Before Year-End

2016-11-30T23:18:00.000-06:00

5 Smart Tax Moves To Make Before Year-End: "The holidays and a presidential transition — needless to say, there are a lot of big events hanging in the balance this time of year. But one thing you can actually prepare for (and feel good about) is your year-end tax planning to-do list."

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