Many clients I have spoken with since tax season have incorrectly assumed the requirement to have health insurance coverage has been repealed. This is only partially correct. The requirement to carry health insurance on one’s self and every dependent in their household has been repealed, but not until 2019! For 2018, you still must have… Continue Reading
Since the end of tax season, I have met with two new clients who are considering starting their own businesses. We discussed the benefits and disadvantages of many aspects of self-employment. I found it interesting that neither considered having a pension to be of high importance. More and more people seem to be retiring early… Continue Reading
When you operate a seasonal business, your workload is concentrated into a few months out of the year. The very nature of this beast makes it difficult to assemble a talented workforce. Most experienced employees desire year-round income. This limits the business to finding seasonal help. Every year we experience a backlog at the review… Continue Reading
A deduction is available for money an employee spends to perform their duties in the course of their employment if they are unreimbursed by their employer. This includes mileage, licenses, union dues, education and out of pocket expenses. The expenses must be incurred as a condition of employment or utilized in the performance of the… Continue Reading
The advice we give our clients is personalized to their situation and circumstances. No two clients are the same. We may recommend one course of action for you and the opposite for your neighbor. The key is to listen to your client. Learn their goals and question any limitations to achieving them. Customers don’t want… Continue Reading
Deceitful communications come via phone, email, postal mail, and sometimes even a knock on your door. It’s important to know that the IRS does occasionally contact taxpayers, but when they do, it’s most often by mail. Sometimes the IRS needs to verify a taxpayer’s identity and will do so by sending a Letter 5071C. This… Continue Reading
All of us here at James E. George, CPA would like to wish you and yours a very happy and prosperous new year! At this time of reflecting on the past and planning for the future, I’d like to suggest making 2018 the year you get your business finances in order. Not just for your… Continue Reading
QUESTION: Dear Taxman – I am the administrator of my Mother’s estate. All she owned at the time of her death was her car, her house and a few investments which were all sold at a loss. Am I required to file an estate income tax return? ANSWER: Dear Reader – An estate tax return, form… Continue Reading
QUESTION: Dear Taxman – My Daughter graduated from college in May of this year. She started working in September and expects to make about eleven thousand dollars this year. Can we still claim her as a dependent for this year? ANSWER: Dear Reader: To claim her as a dependent in any year, she must have been a… Continue Reading
QUESTION: Dear Taxman – I donate money to different non-profit organizations. Every year my Tax Preparer deducts some but not all of them. I thought donations to all non-profit groups were tax deducible. ANSWER: Dear Reader – Non-profit groups don’t pay income taxes on money you give them. That does not mean you get a… Continue Reading
QUESTION: Dear Taxman – Every week I place cash in the collection plate at church. I recently heard I cannot deduct it since I have no banking record. Is that true? ANSWER: Dear Reader – As of August 16, 2006 a receipt from the donee organization or a bank record such as a cancelled check… Continue Reading
QUESTION: Dear Taxman – When should I refinance my home? ANSWER: Dear Reader – Refinancing becomes worth your while if the current interest rate on your mortgage is at least 2 percentage points higher than the prevailing market rate. Talk to several lenders to find out the current refinancing rates and what costs are associated… Continue Reading
QUESTION: Dear Taxman – How long am I required to keep my tax records? ANSWER: Dear Reader – You should save all your income tax records for the current year and six previous years. Certain tax records like your income tax returns should be kept permanently. Property settlement transaction documents should be kept for four… Continue Reading