The Arizona Department of Revenue (ADOR) reminds taxpayers there is a new process for claiming credits for public schools, qualified charitable organizations (QCOs), and qualified foster care organizations (QFCOs) this tax filing season.
The new Qualified Business Income (QBI) deduction, created by the 2017 tax reform law known as the Tax Cuts and Jobs Act (TCJA), allows many statutory employees, owners of sole proprietorships, partnerships, S corporations, trusts, or estates to deduct up to 20 percent of their qualified business income. Eligible taxpayers can also deduct up to 20 percent of their qualified real estate investment trust (REIT) dividends and publicly-traded partnership income.
Consequences of padding tax deductions is serious and you are gambling with the IRS. Benjamin Franklin said, “In this world, nothing can be said to be certain, except death and taxes.” With that in mind, it is best to be prepared, at least financially, for taxes and tax season each year.
Effective January 1, 2019, Christopher T. Coots, CPA, PFS™, J.D. was promoted to Partner, Scottsdale, AZ, bringing Wallace Plese + Dreher’s (WP+D) total number of partners to 13.
With over 20 years of professional accounting experience, Chris provides comprehensive tax planning and consulting services to individuals, partnerships, corporations, estates and trusts. He serves clients in a variety of industries, including technology, health care, manufacturing, and real estate. Working with privately-held businesses and their owners, he develops tax plans maximizing cash flow and minimizing tax liabilities. His hands-on collaborative approach effectively and efficiently guides clients on diverse business matters.
Deducting medical and dental expenses is complicated. Your deductions must exceed 7.5 percent of your adjusted gross income and need to fall into an IRS-approved category. Deductible medical expenses may include, but are not limited to, doctors, dentists, surgeons, chiropractors, insulin, prescription medications, acupuncture, and transportation to qualified medical care.
During the week of December 19, 2018, WP+D held its first annual Christmas and Seasonal cubicle and office decorations competition. All employees were invited to tastefully create and display a theme of their choice in our Chandler and Scottsdale offices.
Tax-saving opportunities continue for retirement planning due to availability of traditional and Roth IRAs and other retirement savings incentives. Opportunities include traditional IRAs, rollovers, and conversions.
Arizona provides two separate nonrefundable tax credits for individuals who make contributions to charitable organizations: Qualifying Charitable Organizations (QCO) and Qualifying Foster Care Charitable Organizations (QFCO). Individuals making cash donations to these charities may claim donations as tax credits up to the allowable amount on their Arizona individual tax returns. Below is a summary of the 2018 Arizona tax credits.
You have devoted a lot of time in managing and operating your agriculture business. When you no longer want to operate your business or reach a retirement stage, are you prepared?
One main requirement of the Affordable Care Act’s employer mandate is that health coverage must be affordable, based on annual standards set by the IRS. This article discusses the percentage increase for 2019.
In wake of tax reform, the IRS issued clarification allowing some business owners to bypass the new $10,000 cap on the state and local tax deduction. Now, business owners may want to consider claiming deductions for charitable contributions as ordinary, deductible business expenses.
GoFundMe is an online platform that anyone can create to raise money for a family member’s cancer treatments, college tuition, new church building, or other cause. Anyone who makes a donation can obtain an official-looking receipt for tax purposes. Are these donations eligible for a charitable deduction?
A tax audit is the fear of every taxpayer and subject of comedians, TV shows, and social media posts. If you are well-prepared, you can make it go smoothly and increase the odds of a good outcome.
What accounting issue does every business leader need to be aware of heading into 2019? A big change in lease accounting, due in January 2019, will affect every public and private Arizona company. See more from Randy G. Brammer, CPA, CCIFP, Audit Partner, and Michelle L. Flynn, CPA, Tax Partner, as featured in Az Business.
Trusts can solve a lot of estate planning problems, and you can even put your residence into one. There are many advantages to this powerful estate planning technique, but you need to know the details.
The digital currency, bitcoin, has frequently been in the news. What is this controversial financial product and how does it work? Is it something you should invest in? Bitcoin is a decentralized digital currency known as a cryptocurrency. Essentially, it is a form of money that exists only as computer code and is not overseen by any central bank. The IRS considers bitcoin a real thing and it is taxable.
Wallace, Plese + Dreher (WP+D) believes in supporting our military and recognizes their sacrifices in protecting and defending the U.S. As one of the Firm’s community projects, we organized a drive to collect school supplies for Military Assistance Mission (MAM). With increased Arizona deployments, military children face many challenges and adjustments when family members are deployed.
Wallace, Plese + Dreher (WP+D) announces numerous promotions. Our people have diverse backgrounds, speak a variety of languages, and possess a wide-range of technical skills. Promotions reflect our workplace culture that encourages continuous learning, career development, and opportunities for advancement.
According to the IRS, interest on home equity loans and similar products still can be deducted under the new tax law, even though early readings of the law suggested otherwise.
Most employers in the United States must pay state unemployment tax, the collection of which is authorized by the State Unemployment Tax Act (SUTA). Although most wages are subject to SUTA tax, certain wages may be exempt. In addition to paying and withholding applicable state unemployment tax, employers also must file wage reports with the state unemployment agency, usually on a quarterly basis. How you handle these requirements can influence your federal unemployment tax rate.
On May 18, 2018, Scott T. Wallace, CPA presented to the Accounting & Financial Women’s Alliance (AFWA) on new lease accounting and revenue recognition standards. Scott provided details about upcoming changes and offered guidance for planning. According to the Financial Accounting Standards Board (FASB), the new standard will require organizations that lease assets, referred to as “lessees,” to recognize on the balance sheet assets and liabilities for the rights and obligations created by those leases.
How do you effectively make charity a part of your legacy? You want to donate with your head as well as your heart, making sure a charity is legitimate, well-run and aligns with your values. This article discusses evaluating charity legitimacy, performing smart research, and tax planning.
Every audit notification may not be legitimate and it is important to make sure it is official. The IRS will notify you either by letter or phone. The IRS does not notify taxpayers about audits through email. If you received an email stating you have been selected for an audit, it is probably fraudulent. If you determine that you are definitely getting audited, your next step is to learn what is involved.
The most common identify theft is synthetic. By combining some factual stolen information with completely fake information, thieves convince banks and credit monitoring companies that a fake identity is real. The “bad guy” is not pretending to be the person whose information was stolen or acquired; rather, the data is being used to create a brand-new identity. Thus, synthetic identity theft is born.
The cost of college continues to increase and saving takes planning. This article offers insights into saving for higher education and methods aligning with the new tax law.
On March 30, 2018, WP+D held its first official Spelling Bee at both offices in Chandler and Scottsdale. The top spellers and champions were Christina Henning and Danielle Jennings.
You may need to pay estimated taxes if you are self-employed or have income other than a salary. This article explains estimated tax payments that are due every quarter.
All U.S. owners, who own 10% or more of a foreign company, must include their pro-rata share of the accumulated earnings of the foreign company as income in 2017. This is effectively requiring the U.S. owner to pay a transition tax on the untaxed foreign earnings.
A ballot measure was filed with the Secretary of State to amend Arizona’s Constitution to protect taxpayers from sales tax on services. The measure is supported by the Citizens for Fair Tax Policy, Arizona Retailers Association, and Arizona Association of Realtors. For the proposition to make it to the November ballot, at least 225,963 signatures are required by July 5, 2018.
Wallace, Plese + Dreher (WP+D) proudly announces its recognition as the No. 1 Accounting Firm by Ranking Arizona.
The Arizona Department of Revenue (ADOR) shared recommendations for selecting the right tax professional this filing season. When choosing your tax professional, consider their formal training; current training; professional licenses; years of experience; availability of e-file services; and security measures for protecting clients’ tax records.
The Firm’s commitment to the non-profit sector is demonstrated by our involvement in community projects and participation on boards. Recently, Sara B. Nance, CPA was added to ICAN: Positive Programs for Youth’s Board of Directors.
Most business owners do not have interruption insurance, which could be a critical mistake. See how rising numbers of natural disasters may factor into today’s decisions.
Important new tax changes may mean charitably-minded individuals might consider new giving strategies and evaluate appreciated stock and donor-advised funds. Insights into giving strategies are included in this article.
Wallace, Plese + Dreher congratulates Patrick Rae, CPA on receiving his Certified Construction Industry Financial Professional (CCIFP) designation.
The Arizona Department of Revenue (ADOR) reminds taxpayers to stay alert in protecting their confidential information from getting in the wrong hands. Be cautious of companies or individuals who contact you offering free incentives or asking to receive money.
No matter where your company is headquartered, you probably conduct business across other state borders. How do taxes work across state borders? Read further for guidance on compliance and multistate taxes.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.