12/01/2011 The IRS no longer wishes to wade into the murky waters of divorce, and the tax technicians who open the mail certainly don’t want to read your legal papers, so here is the relatively new edict: court orders, decrees and separation agreements alone cannot be relied upon to determine which parent may “take the… Continue Reading
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Category Archives: Dollars for Tax – Individuals and Families
To Roll or Not to Roll — 401(k) to IRA
11/02/2011 This morning it is snowing like crazy here in Colorado, so instead of racing to work, I had a second cup of coffee and watched one of the morning news talk shows. The money topic was IRAs and the speaker—a newly minted author/expert– advocated rolling over your 401(k) to an IRA because you would… Continue Reading
Scam-O-Rama: Annual Colorado Secretary of State Reporting Requirement and A Couple of Others
04/02/2011 In spite of the fact that April 18 looms large on my horizon, I could not help myself from commenting on a few well-presented and scary scams that may be lurking in YOUR mailbox. All were shared with us by clients who should be applauded for double checking before reacting. Secretary of State Filing. … Continue Reading
Colorado Joins the OnLine Nexus Sales Tax Controversy – Do You Owe Use Tax on Your Online Purchases?
01/29/2011 A client emailed a notice she received from one of her online vendors. It stated, “This notice is being sent to comply with Colorado Regulation 39-21-112.3.5 recently enacted in 2010. This regulation requires out-of-state retailers to send a summary invoice on or before January 31st to Colorado customers with more than $500 in purchases… Continue Reading
ObamaCare Taxes the Sale of Your Home – or does it??? Debunking
01/27/2011 You gotta love the Internet. Information (and dis-information) on steroids coming at us 24/7. I started getting emails from clients in the fall with forwarded messages of doom, that ObamaCare promised to tax one of our nation’s most sacred tax “loopholes” – the gain on the sale of our principal residences – in order… Continue Reading
Payroll Tax “Holiday” – Social Security Only
01/10/2011 A client called today positive that she had found a glitch in QuickBooks payroll software — the Social Security deducted at the employee level did not equal the Social Security calculated for the employer. Yep, I told her, it is right. Here is the deal. For 2011 ONLY, Congress decided to allow wage earners… Continue Reading
2010 TAX COUNTDOWN – Roth IRAs and Kids: A Winning Combo
12/13/2010 Who can set up a Roth IRA? Anyone who has earned income (as in W-2 wages or self employment income) and as a single taxpayer has modified adjusted gross income of less than $120,000. Who does that describe? Lots of people – including YOUR KIDS. Here is the rule: for 2010 and 2011, a… Continue Reading
2010 Tax Countdown – S Corporation Shareholders and Health Insurance Deduction – Check NOW
[UPDATE DEC 2011: We have been told by a seminar presenter that for 2011 and beyond, S corps should report health insurance for shareholders on W-2 in Box 12 with DD code instead of Box 14 as in the past…we are going to research this a tad more…but there you have it for now. Also, the presenter… Continue Reading
2010 Tax Countdown – Is a Gym Membership Deductible as a Medical Expense?
12/04/2010 As we all start drafting our 2011 New Year Resolutions, “get healthy and fit” will be at the top of many of our lists – AGAIN. But this time, I’m serious!! Aren’t you? So, of course, the burning question is: Can I deduct my gym membership? After all, it is all about being responsible… Continue Reading
2010 Tax Countdown – Yes, Virginia, There Really is a 0% Capital Gains Tax Rate
12/03/2010 You read that right. There is a 0% capital gains rate in effect for 2010. That means NO TAX (or reduced tax) on long term capital gains on sale of stock other securities or any capital asset, like a second home. We don’t know yet if it will be extended to 2011, so if… Continue Reading