Taxman

The tax incentive that allows tax-free distributions from IRA’s for charitable purposes expires on December 31, 2011.

taxman — Tue, 25 Oct 2011 20:59:29 +0000

To qualify, the funds must be contributed directly by the IRA trustee to the eligible charity. Transferred amounts are counted in determining whether the owner has met the IRA’s required minimum distribution rules. If you had considered making a donation using your IRA, now is the time!

Own a business and looking for ideas for year end write-offs?

taxman — Wed, 19 Oct 2011 21:00:51 +0000

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 provides 100% depreciation bonus for certain machinery and equipment placed in service after 9/8/2010 through 1/1/2012. For equipment placed in service after 12/31/2011 and through 12/31/2012, the bill provides for 50% depreciation bonus. Normally, businesses recover these capital investments through annual depreciation deductions spread over several years. Both of these provisions encourage these investments by enabling businesses to write them off more quickly. Questions? Call one of our experienced staff today. 701-282-3300.

Designated Federal Disaster Areas and Casualty Losses

taxman — Tue, 30 Aug 2011 20:39:10 +0000

The IRS recently announced that certain parts of Montana and North Dakota have been designated federal disaster areas as a result of severe storms and flooding. Taxpayers in the federally-designated areas are granted relief from penalties associated with various return filing and tax payment deadlines and may elect to claim disaster-related casualty losses on their federal tax returns for 2010, rather than waiting to claim the losses on their 2011 tax returns. Affected taxpayers claiming the disaster loss on their 2010 tax returns should put the Disaster Designation, “Montana/Severe Storms and Flooding,” at the top of the Form 4684, Casualties and Thefts, so that the IRS can expedite the processing of the refund. This includes taxpayers who reside or own a business in the Barnes, Benson, Burleigh, McHenry, Morton, Ramsey, Renville, Richland, and Ward counties and Spirit Lake Nation of North Dakota.

Why It’s Worth Paying for a Tax Pro

taxman — Mon, 07 Mar 2011 17:29:43 +0000

Article posted from WSJ.com –

To save money last year, Anthony Fasano tried preparing his new business’s first tax return on his own. Then reality sank in.

“I realized I really had no understanding of the tax laws from a business standpoint,” says Mr. Fasano, founder of Powerful Purpose Associates, an executive-coaching company he runs out of his home in Ridgewood, N.J. “I was just winging it.”

Mr. Fasano started the business in 2009 as a side project while working for an engineering firm. But when his wife got laid off from a government job last year, he turned it into a full-time endeavor, sensing it would prove more lucrative for his family.

After spending roughly 20 hours trying to figure out the returns, Mr. Fasano ended up paying $500 to have an accountant finish the job, at which point he learned that he had overlooked the need to file 1099 forms for his four contract employees. “I didn’t know that had to be done at all,” says Mr. Fasano. “I should’ve gone to an accountant in the beginning.”

This tax season, entrepreneurs operating on a tight budget may be tempted to forgo professional help in preparing their companies’ returns. But experts say the investment is typically worthwhile — at least for those just starting out — to maximize deductions and avoid penalties. Tax specialists can help ensure that business owners don’t pay Uncle Sam too much or too little and help identify all the tax breaks they’re eligible to receive.

Click here to finish reading article…

Kent Busek on AM1100

taxman — Sat, 19 Feb 2011 19:07:02 +0000

Taxman’s Kent Busek was featured on The Flag.

Click here to listen.

INFORUM – Tips for getting through taxes

taxman — Fri, 28 Jan 2011 21:17:45 +0000

If you’re into numbered forms, itemized deductions, and carrying figures over from line to line, the most wonderful time of the year – tax season, of course – is approaching fast.

And if you’re not quite so enamored with the process, well, it’s still coming. To make life a little easier, we sat down with a pair of tax experts and enlisted the help of our local Internal Revenue Service representative to get a handle on the key questions surrounding your soon-to-be-filed return.

No change is good

For many taxpayers, “the good news is not a lot changed from last year,” says Laura Kahn, a tax specialist with Taxman in Fargo. “A lot was supposed to change, but didn’t.”

Taxman hires Kummeth as tax specialist

taxman — Fri, 28 Jan 2011 21:09:14 +0000

Taxman has hired Robert Kummeth as a tax specialist at Taxman’s office at 4840 Amber Valley Parkway, Fargo.

Kummeth has more than 11 years of experience in individual and small business income tax preparation.

If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable.

taxman — Tue, 09 Nov 2010 00:55:31 +0000

The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.

Seven things the IRS wants you to know about the Nonbusiness Energy Property Credit

taxman — Wed, 03 Nov 2010 01:18:52 +0000

Taxpayers who take energy saving steps this year may get bigger tax savings next year. The Nonbusiness Energy Property Credit, a tax credit for making energy efficient improvements to homes has been increased as part of the American Recovery and Reinvestment Act of 2009 and is valid through the 2010 tax year.

Here are seven things the IRS wants you to know about the Nonbusiness Energy Property Credit:

The new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 claimed for 2009 and 2010 combined.
The credit applies to improvements such as adding insulation, energy-efficient exterior windows and energy-efficient heating and air conditioning systems.
To qualify as “energy efficient” for purposes of this tax credit, products generally must meet higher standards than the standards for the credit that was available in 2007.
Manufacturers must certify that their products meet new standards and they must provide a written statement to the taxpayer such as with the packaging of the product or in a printable format on the manufacturers’ Website.
Qualifying improvements must be placed into service after December 31, 2008, and before January 1, 2011.
The improvements must be made to the taxpayer’s principal residence located in the United States.
To claim the credit, attach Form 5695, Residential Energy Credits to either the 2009 or 2010 tax return. Taxpayers must claim the credit on the tax return for the year that the improvements are made

If taxes are not paid, the IRS can ask a taxpayer to take action to pay the taxes

taxman — Tue, 12 Oct 2010 01:31:20 +0000

Whether paying with a timely filed tax return, or filing late and paying late after receiving a bill from the IRS (and the bill is correct), taxpayers are encouraged to pay the taxes they owe in full.

If taxes are not paid, and no effort is made to pay them, the IRS can ask a taxpayer to take action to pay the taxes, such as selling or mortgaging any assets owned or getting a loan. If effort is still not made to pay the bill, or make other payment arrangements, the IRS could also take more serious enforced collection action, such as levying bank accounts, wages, or other income, or taking other assets. A Notice of Federal Tax Lien could be filed that may have a detrimental effect on a taxpayer’s credit standing