Pay No Federal Tax on Qualified Small Business Stock
To encourage investment in some small businesses, investors have an opportunity to collect gains that are free from federal tax. Investors in Qualified Small Business Corporations may qualify for three different gain exclusion tax breaks. However, under current law, you must act before the end of the year to get the best gain exclusion deal. This article briefly explains the rules.
Want Tax-Free Income? There Are Still Ways to Receive It
You may think you have to pay tax on all income you receive but it's not true. Even with the federal tax increases that went into effect at the beginning of 2013, there are still some ways to earn income that is free from tax. Here are ten sources of income that generally do not come with a federal income tax liability.
Update on the Section 179 Deduction Tax Break
The latest tax law includes important depreciation changes that will benefit businesses for the 2013 tax year (and 2012 if you haven't filed yet). Under Section 179, a business can deduct qualifying assets (including most software) in the year they are placed in service -- rather than writing them off over several years under the regular depreciation rules. This article explains the rules.
Terrorism Insurance: Understanding its Limits and Provisions
The Boston Marathon bombings have brought the issue of terrorism insurance into the spotlight again. Businesses that suffered losses as a result of the attacks may be reimbursed if they have the special coverage, but a recent report found that an estimated 40 percent do not. Here are the basics of terrorism insurance for businesses and individuals, including when the coverage kicks in, what is excluded and how the federal government helps share the burden of losses.
Tax and Other Considerations When Selling Your Home
The prime home selling season is in full bloom around the country. Depending on your area and situation, it may be a good time to sell. Mortgage interest rates are down and the National Association of Realtors reports that home sales are up over last year. If you are selling and are eligible for the federal home sale tax break, the profit from selling your principal residence can be free from federal income taxes. Here are the general rules, as well as some special exceptions.
Employers: Highlights of the IRS Voluntary Worker Classification Program
The IRS has made changes in its Voluntary Classification Settlement Program (VCSP), which allows employers to reclassify independent contractors as employees at a lower tax cost. More businesses are now eligible. A deadline is coming up on June 30 for employers who want to apply for the VCSP but didn't file the required 1099 forms for affected workers. Here are the details of the program, along with how the discounted taxes are calculated and possible unforeseen implications of participating.
Getting a Waiver of the 60-Day IRA Rollover Rule
Taxpayers taking IRA distributions can roll the money over tax free into another IRA -- but the transaction must be completed in 60 days to avoid a tax bill. However, there may be relief if you can't complete a rollover on time due to extenuating circumstances. In a new Private Letter Ruling, the IRS waived the requirement for a taxpayer who missed the deadline due to medical conditions. Here are details, along with the rules, and other cases in which the IRS granted hardship waivers.
Healthcare Law Deadlines in Place, Coming Up -- and Delayed
Most employers are aware that, starting January 1, 2014, there will be a penalty for some employers if they don't offer affordable health insurance coverage to employees who work a certain number of hours a week. But under the Affordable Care Act, employers face numerous other provisions and deadlines. This article briefly explains three provisions involving healthcare flexible spending accounts, group plan waiting periods and the new Small Business Health Options Program.
Buried in Tax Paperwork? What Can You Throw Away?
Once you file your 2012 tax return, you can clear away some of the paperwork cluttering up your files. But save essential records that can protect you during an IRS audit, help you collect a future refund or assist you with filing next year. What records do you have to keep and which ones can you throw away? How long do you have to hold onto certain records? We'll provide the answers in this article.