Real Estate in Your IRA
Traditionally, IRAs contain funds or individual securities, but it is possible to put other kinds of investments into these accounts, including real estate. There are rewards and potential risks with this strategy.
News
Tax Cuts and Jobs Act | TCJA
In 2018, changes to individual and corporate income tax rates become effective under the new tax legislation called the Tax Cuts and Jobs Act (TCJA). For example, TCJA drops the corporate income tax rate to 21% and modifies individual rate brackets. Read further for full details.
Written Acknowledgments | Tax-Deductible Charitable Contributions
If you offer gifts or money to qualified organizations eligible to receive tax-deductible charitable contributions, you must do two things: (1) have a bank record or written communication from the charity for any monetary contributions and (2) obtain a written acknowledgment from the charity for any single donation of $250 or more.
Managing Form 1099
One of the most important tax and payroll issues a company has to address is who is an actual employee and who is an independent contractor. Once you have that worked out, your next step is making sure each category of workers gets the right forms.
2017 Phoenix Fit Company Challenge
Wallace, Plese + Dreher (WP+D) is serious about team building and having fun. For the second year, WP+D participated in the Phoenix Fit Company Challenge, on Saturday, November 17, 2017, at Kiwanis Park, Tempe, Arizona.
Keep Your Homeowners Insurance Current
Homeowners insurance is not about buying it once and then forgetting about it. You have to repeatedly check it to make sure you are fully protected. Homeowners insurance is meant to protect against disasters ranging from fire to theft to lawsuits, encompassing most injuries and damage that members of your family might cause to other people. This article discusses how to protect your property and your loved ones.
Changes in Social Security and Retirement Plans for 2018
Every year, the IRS and Social Security Administration modify essential numbers for Social Security and retirement plans. From 401(k) plans to individual retirement accounts to Social Security, the federal government has been busy in recent weeks adjusting numbers for 2018. Whether you are an employee or business owner, senior management or nonexempt staff, these changes may affect how you approach retirement in the coming months and years.
Building a Successful Company Morale
Positive morale can unleash a company’s success. How do you build a positive company morale? Implementing a few easy tactics can create a positive workplace that attracts and retains employees.
Is Your Business Data at Risk?
Security measures by federal and state tax agencies have decreased cyberattacks against individual taxpayers. However, business data thefts are rising. There are simple, effective ways that businesses can minimize their risk of tax-related identity theft.
WP+D Team – AZAGC Bowling Tournament
Wallace, Plese + Dreher (WP+D) showed support for the Associated General Contractors of America, Arizona Chapter (AZAGC), by participating in its annual 2017 AZAGC Inaugural Bowling Tournament, on September 15, 2017, Phoenix, Arizona.
Business Succession Planning | Scottsdale | Chandler | Arizona
Succession planning is important for all Arizona businesses and frequently overlooked in family-owned operations. There are numerous family-run companies that no longer exist due to poor or no succession plan.
The plan needs to be well-designed and discussed with everyone affected. Do not assume that a son or daughter will want to carry on the family business. Even if your children say they will take over, they may not have the true desire required to continue a successful operation.
We Care | Disaster Relief Support | American Red Cross
As Hurricane Harvey approached and descended on Texas, our hearts and thoughts went out to people frantically leaving their homes and businesses. As we watched social media, listened to radio broadcasts, and spoke with family members in the path of Hurricane Harvey, we wanted to help in some way. Photos of people clinging to trees, flood waters rising in homes, and families in shelters moved us into action. Without hesitation, our employees donated directly to the American Red Cross and WP+D matched their donations by 50 percent. This is a small example of our Firm’s caring culture and willingness to help those in need.
FMLA: Stay Informed
The Family and Medical Leave Act (FMLA) is constantly modified and reinterpreted, and courts are frequently asked to weigh in. Employers should remain watchful and ensure they are compliant with this dynamic law. This is a summary of three recent settled cases.
WP+D Announces New Partner, Jason A. Mattina, CPA
Wallace, Plese + Dreher (WP+D) elected Jason A. Mattina, CPA, to partner, effective July 1, 2017. Jason joined the Firm in 2002 and previously was an Audit Senior Manager.
WP+D Announces Promotions | Scottsdale | Chandler | Arizona
Wallace, Plese + Dreher promotes nine professionals.
Taxes | Sharing, Gig, and On-Demand Economy
Are you part of the sharing, Gig, or on-demand economy? Examples are providing rides via mobile app, renting out a spare room using an online platform, or repairing computers for local businesses on demand. Participation in this emerging method of distributing services can be a good way to earn money in your down time, pursue a flexible lifestyle, and provide cash to offset expenses associated with owning a vehicle or home.
Can Employers Monitor Employee Communications?
As an employer, you have authority to monitor employee communications. Of course, that power is not unlimited and depends on the level of privacy you have led employees to expect, whether explicitly or implicitly.
2018 Health Savings Account Limits
The IRS announced inflation-adjusted amounts that individuals and families can contribute to Health Savings Accounts (HSAs) in 2018. The tax agency also announced the minimum required deductibles and out-of-pocket maximums for high-deductible health plans.
Randy G. Brammer, CPA | 40 Under 40 Nominee
As a nominee, Randy Brammer attended the Phoenix Business Journal’s 40 Under 40 Class of 2017 kick-off party in Scottsdale. Every year, the Phoenix Business Journal honors 40 individuals under the age of 40 that contribute to their company and community.
Arizona Proposition 206 | Earned Paid Sick Time
Effective July 1, 2017, Proposition 206 entitles employees to accrue earned paid sick time. Arizona voters approved Proposition 206, the Fair Wages and Healthy Families Act, which established a new state minimum wage and entitled employees to accrue earned paid sick time.
Reducing Taxes | Recent College Graduate
This article is the ninth of ten tips for reducing taxes during the summer. Has your child recently graduated from college? This is probably the last year you can claim a dependency exemption.
Reducing Taxes | Primary Residence Rental
This article is the seventh of ten tips for reducing taxes during the summer. By renting out your primary residence, you may not need to comply with the usual tax rules. Read further for details.
Reducing Taxes | Vacation Home Use
This article is the sixth of ten tips for reducing taxes during the summer. Federal tax law allows deductible expenses relating to renting out a vacation home to offset rental income.
Reducing Taxes | Summer Day Camp
This article is the fourth of ten tips for reducing taxes during the summer. Working parents should consider sending their young children to day camp while school is out.
Reducing Taxes | Charity Donations
For summer tax planning, this article is the third of ten tips for reducing taxes. Take this time to donate items to charity that are no longer being used.
Reducing Taxes | Company Events
For summer tax planning, this article is the second of ten tips for reducing taxes. Generally, costs for company picnics, barbecues, or similar events can be deducted.
Reducing Taxes | Entertaining Business Clients
For summer tax planning, this article is the first of ten tips for reducing taxes. When entertaining clients, you may be eligible to write off 50% of the cost of business meals and entertainment.
Moving and Establishing Residency
Considering moving to another state? Moving could lower your state tax bill; however, you need to establish the new state is your place of legal residence, also known as your domicile, for state tax purposes. Otherwise, the old state could come after you for taxes after moving. In the worst-case scenario, your new state could expect to get paid, too.
Home Mortgage Interest Deductions
Homeowners that itemize “qualified residence” interest should be aware of the IRS rules and new Form 1098 reporting requirements. The allowed deduction may not match what the bank reports on Form 1098 and the IRS can target this deduction in tax return audits.
Recruiting | February 2017 | Northern Arizona University (NAU)
Recruiting teams engage students and prospective employees at a variety of universities throughout Arizona.
New FBAR Filing Deadline | April 18, 2017
The IRS requires taxpayers that have an interest in or authority over foreign financial accounts to provide information about the account by filing a form called the Report of Foreign Bank and Financial Accounts (FBAR). For accounts held in 2016, the annual deadline filing for FBARs has changed to April 18, 2017, which now coincides with individual tax filing deadlines under the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015. Previously, the deadline was June 30, excluding weekends and holidays.
Arizona Tax Credit Increases | Charitable Donations
Arizona increased tax credit contributions for qualifying charitable and foster care organizations, retroactive to January 1, 2016.
Section 179 Deductions for Real Estate Expenses
The Section 179 deduction for qualified real property expenses was made permanent under the Protecting Americans from Tax Hikes (PATH) Act of 2015. There are pros and cons for claiming this deduction.
Employers Are Now Required to Use New Form I-9
Employers must ensure proper completion of Forms I-9 to verify identity and employment authorization of their employees. In 2016, a new Form I-9 was issued and employers had an option to use the old form. Beginning January 22, 1017, employers are required to use the new version.
Arizona Tax Refunds
Are you wondering when to expect your Arizona tax refund? Taxpayers filing electronically who chose direct deposit can expect refunds within 12 business days after return acceptance. Taxpayers filing paper returns should expect their refund within 6-8 weeks after return acceptance.
Coach Employees to Avoid Cybercrime
Companies can avoid cyberattacks and minimize risks by coaching employees and establishing policies and procedures. Simple steps can guard against basic criminal acts and internal cyberthreats.
1099-G Forms May Contain Incorrect Information
The Arizona Department of Revenue announced some 1099-G forms were sent to taxpayers that contained erroneous information. This does not impact anyone who did not receive an Arizona state income tax refund in 2015. Corrected 1099-G forms are set to be completed this week and mailed to impacted taxpayers as soon as possible.
Retirement and Taxes
Considering retiring and moving to another state for the weather, to be closer to family, or both? Certain states may be more attractive than others due to taxes. Some states may have residency requirements for state tax purposes, which may be complicated.
IRS Clarification | Corporate Debt Versus Equity
Corporations can deduct interest on debts for federal tax purposes. A valid obligation exists if the parties intended to create a debt, and the debt is enforceable and unconditional. In contrast, a capital contribution is a direct or indirect contribution of cash or other property to the capital of a business entity. Generally, a contribution to the capital of a corporation is not treated as taxable income to the corporation, and the contributor cannot deduct the payment for tax purposes.
Commercial Construction Contractors: Surety Bonds
Most commercial construction contractors would like to expand their business with larger projects. Due to increased risks associated with these projects, they require bid, performance, and payment bonds.
Avoiding Probate
Creating a revocable living trust keeps heirs out of probate court and ensures financial data stays private.
Doing Business Across Borders
Our international tax consultants assist clients with complete tax planning, return preparation and filing to ensure U.S. and foreign compliance.
Year-End Reminder – FSAs
It is easy to forget to spend remaining funds in Flexible Spending Accounts (FSAs) before January 1, 2017. By failing to observe the “use-it-or-lose-it rule,” money could be forfeited if there is money left over in your accounts, unless a special provision applies.
Fit Company Challenge – Phoenix 2016
Three teams from Wallace, Plese + Dreher participated in the Fit Company Challenge – Phoenix 2016 and competed against nine other Arizona companies. Team participants included a variety of ages and fitness levels and worked together to complete three courses for their team. Courses focused on strength, agility, full-body conditioning, speed, and endurance. Examples of course stations included planks, burpees, sit-ups, kettlebell swings, push-ups, inverted rows, sandbell slams, sprint and agility relays, and three-mile runs.
Wallace, Plese + Dreher Welcomes New Partners
Effective November 1, 2016, Dennis, Schmich & Co., Ltd. combined with Wallace, Plese + Dreher. All four partners, Murray P. Mindlin, CPA, J.D., L.L.M., Hilarie H. Pierce, CPA, Steven F. Buel, CPA, and Nikki M. Kuretich, CPA, joined WP+D.
Mark Dreher Recognized | Influential Arizona Business Leader
Mark Dreher recognized as one of the most influential leaders in accounting and Arizona business community.
Fringe Benefits – Partnerships and LLCs
A special set of federal income tax rules applies to fringe benefits provided by a partnership to its partners in exchange for their services to the business. The same set of rules also applies to multi-member LLCs because they are treated as partnerships for federal tax purposes.
Retirement Plans – Common Operational Deficiencies
Performing self-audits on retirement plans can avoid common deficiencies found by the IRS and Department of Labor.
IRS Threatens Discounts on Certain Family-Owned Business Entities
Considering setting up a family limited partnership ( FLP) or transferring additional interests into an existing one? You may want to act now before year end.
Tax Strategies | Inherited IRAs
If you recently inherited an IRA with other beneficiaries, the rules regarding required minimum distributions (RMDs) may not be optimal for everyone. Particularly, if the beneficiaries are multiple beneficiaries or the inherited IRA lists a charity as a beneficiary.