Tax Extenders: 2016 Tax Rule Updates

On December 18th, right before shutting down for the holidays, Congress has passed 50 major changes for the upcoming tax filing season. Some of the tax extenders will be quite important, while others may go by without much notice. We’re taking a look at the notable changes. Permanent Tax Extenders Some of the previously enacted […]

Freyman CPA On Homeowner Tax Mistakes

We recently spoke with Erik Sherman of the National Association of Realtors to discuss the biggest homeowner tax mistakes. Below is an except from the article. 6 Homeowner Tax Mistakes Accountants Say to Watch For “4. Understanding Rental Income Renting out a room or wing of your house on Airbnb can be a fun way […]

Are 1099 Forms Issued For Goods And Supplies?

Question I’m a staff accountant for an S Corporation. We need to issue 1099 forms to LLCs and contractors. As an S Corporation, do we need to issue a 1099 for goods and supplies? Answer Please note that the 1099-MISC form is generally issued for payment of services provided. However, if the goods and supplies […]

Required Minimum Distributions For Beneficiaries

Those fortunate enough to be named a beneficiary of a retirement account will want to know the nuances for reporting income on their tax return. This is specifically important when the account holder passes away before or after the time they are supposed to take required minimum distributions (RMDs). What are required minimum distributions? Traditional […]

Does Itemizing Increase My Audit Risk?

Itemizing deductions in itself does not increase the chances of being audited. If we reference the latest IRS statistics, the taxpayer’s income is more of a factor than whether or not they itemized. Specifically: Most basic tax returns with less than $200,000 in income and without any business or investment income have a 0.3% chance […]