Friday, July 29, 2016

Tax Dates for Small Businesses


8/1/2016
  • 
File Form 720 for the second quarter. 
  • File Form 730 and pay the tax on wagers accepted during June.
  • 

File Form 2290 and pay the tax for vehicles first used during
 June.


  • Deposit FUTA owed through June if more than $500.
  • 

File Form 941 for the second quarter.


  • File Form 5500 or Form 5500-EZ for calendar year 2015 employee 
benefit plan


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Do you plan to donate your time to charity this summer?




If you travel for charity, you may be able to lower your taxes. Here are some tax tips that you should know about deducting charity-related travel expenses:
  • Qualified Charities.  To deduct your costs, you must volunteer for a qualified charity. Most groups must apply to the IRS to become qualified. Churches and governments are generally qualified, and do not need to apply to the IRS. 
  • Out-of-Pocket Expenses.  You may be able to deduct some of your costs including travel. They must be necessary while you are away from home. All  costs must be:
    • Unreimbursed, 
    • Directly connected with the services, 
    • Expenses you had only because of the services you gave, and 
    • Not personal, living or family expenses.
  • Genuine and Substantial Duty.  Your charity work has to be real and substantial throughout the trip. You can’t deduct expenses if you only have nominal duties or do not have any duties for significant parts of the trip.
  • Value of Time or Service.  You can’t deduct the value of your time or services that you give to charity. This includes income lost while you serve as an unpaid volunteer for a qualified charity.
  • Travel You Can Deduct.  The types of expenses that you may be able to deduct include:
    • Air, rail and bus transportation, 
    • Car expenses, 
    • Lodging costs, 
    • Cost of meals, and
    • Taxi or other transportation costs between the airport or station and your hotel.
  • Travel You Can’t Deduct.  Some types of travel do not qualify for a tax deduction. For example, you can’t deduct your costs if a significant part of the trip involves recreation or  vacation.
 Source:Internal Revenue Service



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When You Should Use Schedule E


You should use schedule E to report income or loss from rental real state, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.

If you are filing schedule E, you may have to file other schedules and forms:

  • Schedule A (Form 1040) to deduct interest, taxes, and casualty losses not related to your business. 
  • Form 3520 to report certain transactions with foreign trusts and receipt of certain large gifts or bequests from certain foreign persons. 
  • Form 4562 to claim depreciation (including the special allowance) on assets placed in service in 2015, to claim amortization that began in 2015, to make an election under section 179 to expense certain property, or to report information on listed property.
  • Form 4684 to report a casualty or theft gain or loss involving property used in your trade or business or income-producing property. 
  • Form 4797 to report sales, exchanges, and involuntary conversions (not from a casualty or theft) of trade or business property. 
  • Form 6198 to figure your allowable loss from an at-risk activity. 
  • Form 8082 to notify the IRS of any inconsistent tax treatment for an item on your return. 
  • Form 8582 to figure your allowable loss from passive activities. 
  • Form 8824 to report like-kind exchanges. 
  • Form 8826 to claim a credit for expenditures to improve access to your business for individuals with disabilities. 
  • Form 8873 to figure your extraterritorial income exclusion. 
  • Form 8910 to claim a credit for placing a new alternative motor vehicle in service for business use. 
  • Form 8960 to pay Net Investment Income Tax on certain income from your rental and other passive activities. 
 



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Thursday, July 28, 2016

When You Should Use Schedule D


You should use schedule D to report the sale or exchange of capital assets. Most property held for personal purposes, pleasure, or investment is a capital asset. Many transactions that, in previous years, would have been reported on schedule D or D-1 must be reported on Form 8949 if they occur in 2015. Schedule D-1 is no longer in use as Form 8949 replaces it. You must now use Form 8949 to list all capital gain and loss transactions;
The subtotals from this form will then be carried over to schedule D (Form 1040), where gain or loss will be calculated in aggregate. The transactions reportable on this schedule include the following:
  • Sales, exchanges, or involuntary conversions of capital asstes
  • Capital gain distributions not reported directly on Form 1040
  • Nonbusiness bad debts 
You also should use schedule D:
  • To figure the overall gain or loss from transactions reported on Form 8949,
  • To report certain transactions you don't have to report on Form 8949,
  • To report a gain from Form 2439 or Form 6252 or Part I of Form 4797,
  • To report a gain or loss from Form 4684, Form 6781, or Form 8824,
  • To report a gain or loss from a partnership, S corporation, estate or trust,
  • To report capital gain distributions not reported directly on Form 1040, line 13 (or effectively connected capital gain distributions not reported directly on Form 1040NR, line 14), and
  • To report a capital loss carryover from 2014 to 2015.


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Tax Dates for Small Businesses



7/29/2016 - Deposit payroll tax for payments on Jul 23-26 if the semiweekly
 deposit rule applies.




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You Should Not Wait Until Extension Deadline to File Your Return



If you filed for an extension of time to file your 2015 federal tax return and you also chose to have advance payments of the premium tax credit made to your coverage provider. If you fall into this category, it’s important you file your return sooner rather than later. Here are four things for these taxpayers to know:

  • If you got a six-month extension of time to file, you do not need to wait until this fall to file your return and reconcile your advance payments. You can – and should - file as soon as you have all the necessary documentation.
  • You must file to ensure you can continue having advance credit payments paid on your behalf in future years. If you do not file and reconcile your 2015 advance payments of the premium tax credit by the Marketplace’s fall re-enrollment period – even if you filed for an extension – you may not have your eligibility for advance payments of the PTC in 2017 determined for a period of time after you have filed your tax return with Form 8962.
  • Advance payments of the premium tax credit are reviewed in the fall by the Health Insurance Marketplace for the next calendar year as part of their annual re-enrollment and income verification process.
  • Use Form 8962, Premium Tax Credit, to reconcile any advance credit payments made on your behalf and to maintain your eligibility for future premium assistance.
Source: Internal Revenue Service





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