Federal Tax Day – Current, I.5, IRS Issues Final Repair Regulations on
Deduction and Capitalization of Expenditures Related to Tangible Property
(T.D. 9636), (Sep. 16, 2013)
Tax News, Journals and Newsletters > Federal Tax > Federal Tax Day – Current > INTERNAL REVENUE SERVICE > I.5, IRS Issues Final Repair Regulations on Deduction and Capitalization of Expenditures Related to Tangible Property (T.D. 9636), (Sept. 16, 2013)
The IRS has released ﬁnal regulations and removed temporary and proposed regulations governing the application of Code Secs. 162(a) and 263(a) to amounts paid to acquire, produce, or improve tangible property. The new regulations clarify existing regulations under those sections. In addition, ﬁnal regulations are issued under Code Sec. 167 regarding accounting for and retirement of depreciable property, as well as under Code Sec. 168 regarding accounting for property under the Modiﬁed Accelerated Cost Recovery System (MACRS) other than general asset accounts. The ﬁnal regulations will aﬀect all taxpayers that acquire, produce, or improve tangible property.
Pursuant to Code Sec. 263(a), amounts paid to acquire, produce or improve tangible property must be capitalized and not deducted. Under Code Sec. 162(a), a taxpayer may deduct all ordinary and necessary expenses paid or incurred during the tax year in carrying on any trade or business, including the costs of certain supplies, repairs, and maintenance.
The ﬁnal regulations provide a framework for distinguishing capital expenditures from deductible business expenses. Existing standards for determining whether an expense may be deducted as a repair or must be capitalized, which require a facts and circumstances test, have been very controversial due to the subjective nature of the standards. The new regulations take into account various incarnations of temporary and proposed regulations (most recently issued in 2011 (T.D. 9564)), comments received on those regulations, and judicial decisions in an attempt to simplify the rules while achieving results consistent with the case law.
The ﬁnal regulations follow the format of the 2011 temporary regulations, addressing the following topics:
Reg. §1.162-3 – Rules for materials and supplies;
Reg. §1.162-4 – Repairs and maintenance;
Reg. §1.263(a)-1 – General rules for capital expenditures;
Reg. §1.263(a)-2 – Rules for amounts paid for the acquisition or production of tangible property; and
Reg. §1.263(a)-3 – Rules for amounts paid for the improvement of tangible property.
The ﬁnal regulations reﬁne and simplify rules contained in the temporary regulations and create a number of new
Comment: The ﬁnal regulations adopt a revised and simpliﬁed de minimis safe harbor under Reg. §1.263(a)-1(f) and extend the safe harbor for routine maintenance under Reg. §1.263(a)-3(i) to buildings. Further, the ﬁnal regulations add a safe harbor for small taxpayers to the rules governing improvements to tangible property under Reg. §1.263(a)-3. Several of the criteria for deﬁning betterments and restorations to tangible property have also
The new ﬁnal regu
lations also ﬁnalize temporary regulations under Code Sec. 167 regarding accounting for and retirement of depreciable property and Code Sec. 168 regarding accounting for MACRS property, other than general asset accounts. Other MACRS regulations relating primarily to dispositions of property are not ﬁnalized at this time but are issued concurrently with these regulations as proposed regulations and are discussed separately (TAXDAY, 2013/09/16, I.6).©2013 Wolters Kluwer. All rights reserved.
2 Materials and Supplies – Reg. §1.162-3
Earlier versions of Reg. §1.162-3 provided, in part, that a taxpayer carrying materials and supplies on hand should include in expenses the charges for materials and supplies only in the amount that was actually consumed and used in operation during the tax year for which the return was made. The earlier regulations did not deﬁne “materials and supplies,” but whether property constituted a material or supply (rather than inventory or depreciable property) was addressed in judicial and administrative rulings. Later temporary and proposed regulations provided deﬁnitions.
The new ﬁnal regulations reﬁne the earlier deﬁnitions. For example, the ﬁnal regulations expand the deﬁnition of materials and supplies to include property that has an acquisition or production cost of $200 or less (increased from $100 or less), clarify application of the optional method of accounting for rotable and temporary spare parts, and simplify the application of the de minimis safe harbor of Reg. §1.263(a)-1(f) to materials and supplies. The ﬁnal regulations also deﬁne standby emergency spare parts and limit the application of the election to capitalize materials and supplies to only rotable, temporary, and standby emergency spare parts. A taxpayer that uses the optional method for rotable and temporary spare parts for tax purposes must use the optional method for all of the pools of rotable and temporary spare parts used in the same trade or business for which the optional method is used for the taxpayer’s books and records.
Regulations clarify that a taxpayer may revoke the election to capitalize and depreciate certain material and supplies by requesting a letter ruling to obtain IRS consent to revocation. Also, the de minimis rule applicable to
materials and supplies and the general de minimis rule, discussed below, are now more clearly coordinated.
Finally, property identiﬁed in previous guidance as materials and supplies remains so classiﬁed under the new
Repairs – Reg. §1.162-4
Amounts paid for repairs and maintenance to tangible property are deductible if the amounts paid are not
required to be capitalized under Reg. §1.263(a)-3. This rule has been retained unchanged from prior versions of
De Minimis Safe Harbor – Reg. §§1.162-3(f) and 1.263(a)-1(f)
Taxpayers are generally required to capitalize amounts paid to acquire or produce a unit of real or personal property. Under prior temporary regulations, a de minimis exception allowed a taxpayer to deduct certain amounts paid for tangible property if the taxpayer had an applicable ﬁnancial statement, had written accounting procedures for expensing amounts paid for such property under speciﬁed dollar amounts, and treated those amounts as expenses on its applicable ﬁnancial statement. The ceiling applicable to this exception was the greater of (1) 0.1 percent of the taxpayer’s gross receipts for the tax year as determined for tax purposes; or (2) 2 percent of the taxpayer’s total depreciation and amortization expense for the tax year as determined on the taxpayer’s applicable ﬁnancial statement.
Under the ﬁnal regulations, the ceiling in the de minimis rule has been eliminated and replaced with a new safe harbor determined at the invoice or item level and based on the policies used by the taxpayer for its ﬁnancial accounting books and records. A taxpayer with an applicable ﬁnancial statement may rely on the de minimis safe harbor under Reg. §1.263(a)-1(f) only if the amount paid for property does not exceed $5,000 per invoice, or per item as substantiated by the invoice. This amount is subject to change by the IRS in future guidance. The de minimis safe harbor has been expanded to include amounts paid for property having an economic useful life of less than 12 months, provided the amount per invoice or item does not exceed $5,000.
A de minimis rule is also included for taxpayers without an applicable ﬁnancial statement, provided that accounting procedures are in place to deduct amounts paid for property costing less than a speciﬁed amount, or amounts paid for property with an economic useful life of 12 months or less. The speciﬁed amount for taxpayers©2013 Wolters Kluwer. All rights reserved.
3 in this category is $500. If the cost exceeds $500 per invoice (or item), then no portion of the cost of the property will fall within the safe harbor.
Regardless of whether or not the taxpayer has an applicable ﬁnancial statement, the de minimis safe harbor does not preclude a taxpayer from reaching an agreement with the IRS that the IRS examining agents will not review certain items. Examining agents do not need to revise their materiality thresholds in accordance with the safe harbor limitations.
The de minimis safe harbor is elected annually by including a statement on the taxpayer’s tax return for the year elected. An election to use the safe harbor may not be made through the ﬁling of an application for change in accounting method.
Temporary regulations required that, to use the de minimis safe harbor, a taxpayer had to have written accounting procedures in place at the beginning of the tax year treating the amounts paid for property costing less than a certain dollar amount as an expense for ﬁnancial accounting purposes. It was suggested that transition guidance be issued for taxpayers that did not have written accounting procedures in place at the beginning of 2012. The ﬁnal regulations do not adopt these suggestions for transition relief, since they are not applicable until tax years beginning on or after January 1, 2014. Taxpayers without written accounting procedures that choose to elect the de minimis safe harbor for their 2014 tax years should have suﬃcient time to consider and draft appropriate procedures prior to the applicability date of the ﬁnal regulations.
In the case of aﬃliated corporations ﬁling a consolidated return, the regulations provide that, if a taxpayer’s ﬁnancial results are reported on the applicable ﬁnancial statement for a group of entities, then the group’s applicable ﬁnancial statement may be treated as the applicable ﬁnancial statement of the taxpayer. A taxpayer electing to apply the de minimis safe harbor is not required to include in the cost of the tangible property the additional costs of acquiring or producing the property if these costs are not included on the same invoice as the tangible property. However, a taxpayer electing to apply the de minimis safe harbor must include in the cost of the property all additional costs (for example, delivery fees, installation services, or similar costs) of acquiring or producing the property if these costs are included on the same invoice with the tangible property.
If an invoice includes amounts paid for multiple tangible properties and the invoice includes additional invoice costs related to the multiple properties, then the taxpayer must allocate the additional invoice costs to each property using a reasonable method (e.g., speciﬁc identiﬁcation, pro rata allocation, or weighted average method based on each property’s relative cost). Additional costs consist of the transaction costs of acquiring or producing the property and the costs for work performed prior to the date that the unit of tangible property was placed in service.
The de minimis safe harbor must be applied to all eligible materials and supplies (other than rotable, temporary, and standby emergency spare parts subject to the election to capitalize or rotable and temporary spare parts subject to the optional method of accounting for such parts) if the taxpayer elects the de minimis safe harbor under Reg. §1.263(a)-1(f). Taxpayers that do not elect the de minimis safe harbor must treat amounts paid for materials and supplies in accordance with Reg. §1.162-3.
Amounts paid for tangible property eligible for the de minimis safe harbor may be subject to capitalization under Code Sec. 263A if these amounts constitute the direct or allocable indirect costs of other property produced by the taxpayer or property acquired for resale. Amounts Paid to Acquire or Produce Tangible Property – Reg. §1.263(a)-2 Temporary regulations provided rules for applying Code Sec. 263(a) to amounts paid to acquire or produce a unit of real or personal property. These rules are generally retained in the ﬁnal regulations, including general requirements to capitalize amounts paid to acquire or produce a unit of real or personal property, requirements to capitalize amounts paid to defend or perfect title to real or personal property, and rules for determining the extent to which taxpayers must capitalize transaction costs related to the acquisition of property. The de minimis safe harbor has been moved to Reg. §1.263(a)-1(f) to reﬂect its broader application to amounts paid for tangible©2013 Wolters Kluwer. All rights reserved.
4 property, including amounts paid for improvements and materials and supplies, except as otherwise provided
under Code Sec. 263A.
Amounts Paid to Improve Property – Reg. §1.263(a)-3
The ﬁnal regulations generally retain earlier rules for determining whether an amount improves, betters, or restores property, including the unit of property. A building is generally deﬁned as a unit of property. These regulations continue to apply the improvement rules separately to the building structure and each building system. The ﬁnal regulations do not provide quantitative bright lines for determining the materiality of an addition to a unit of property or an increase in capacity, productivity, eﬃciency, strength, quality, or output of a unit of property, despite comments requesting such bright lines. The regulations rely on qualitative factors to provide fair and equitable treatment for all taxpayers in determining whether a particular cost constitutes a betterment. Temporary regulations required consideration of all facts and circumstances in determining if a betterment of property existed, including treatment of the expenditures on a taxpayer’s applicable ﬁnancial statement. The ﬁnal regulations remove the taxpayer’s treatment of the expenditure on its ﬁnancial statement as a factor to be considered in performing a betterment analysis. In addition, the determination of whether amounts are paid for a betterment of the taxpayer’s property no longer includes consideration of the taxpayer’s facts and circumstances. With respect to retail store refresh or remodel projects, commenters requested quantitative bright lines and additional details in the given examples. Although bright lines were not adopted, additional details were added to examples, illustrating distinctions between betterments and maintenance activities when a taxpayer undertakes multiple simultaneous activities on a building.
The ﬁnal regulations also provide rules for determining the unit of property for leased property and for leasehold improvements, as well as special rules for determining improvement costs (including costs incurred during an improvement and removal costs).
Final regulations include a safe harbor for small taxpayers to assist them in applying the general rules for improvements to buildings. A safe harbor election is provided for building property held by taxpayers with gross receipts of $10 million or less (a “qualifying small taxpayer”). Such a taxpayer can elect to not apply the improvement rules to an eligible building property if the total amount paid during the tax year for repairs, maintenance, improvements, and similar activities performed on the eligible building does not exceed the lesser of $10,000 or 2 percent of the unadjusted basis of the building. Eligible building property includes a building unit of property that is owned or leased by the qualifying taxpayer, provided the unadjusted basis of the building unit of property is $1,000,000 or less.
The safe harbor for building property held by small taxpayers may be elected annually on a building-by-building basis by including a statement on the taxpayer’s timely ﬁled tax return, including extensions, for the year the costs are incurred for the building. Amounts paid by the taxpayer to which the taxpayer properly applies and elects the safe harbor are not treated as improvements to the building under Reg. §1.263(a)-3 and may be deducted under Reg. §§1.162-1 or 1.212-1, as applicable, in the tax year that the amounts are paid or incurred, provided the amounts otherwise qualify for deduction under those sections. A taxpayer may not revoke an election to apply the safe harbor for small taxpayers.
A safe harbor for routine maintenance activities for property other than a building or its structural components, applicable under temporary regulations, has been expanded to apply to routine maintenance for buildings. The inclusion of a routine maintenance safe harbor for buildings is expected to alleviate some of the diﬃculties that could arise in applying the improvement standards for certain restorations to building structures and building
The ﬁnal regulations use 10 years as the period of time in which a taxpayer must reasonably expect to perform the relevant activities more than once. However, amounts incurred for activities falling outside the routine maintenance safe harbor are not necessarily expenditures required to be capitalized under Reg. §1.263(a)-3.©2013 Wolters Kluwer. All rights reserved.
5 Amounts incurred for activities that do not meet the routine maintenance safe harbor are subject to analysis
under the general rules for improvements. The ﬁnal regulations retain earlier rules regarding restoration, but with revisions to the major component rule (clariﬁcation of some deﬁnitions) and the casualty loss rule. Temporary regulations provided that an amount is paid to restore a unit of property if it is for the repair of damage to the unit of property for which the taxpayer has properly taken a basis adjustment as a result of a casualty loss under Code Sec. 165, or relating to a casualty event described in that section. Capitalization of restoration costs is required under the casualty loss rule, even when the amounts paid for the repair exceed the adjusted basis remaining in the property and regardless of whether the amounts may otherwise qualify as repair costs. The ﬁnal regulations revise the casualty loss rule to permit a deduction for amounts spent in excess of the adjusted basis of the property damaged in a casualty event. A taxpayer is still required to capitalize amounts paid to restore damage to property for which the taxpayer has properly recorded a basis adjustment, but the costs required to be capitalized under the casualty loss rule are limited to the excess of: (1) the taxpayer’s basis adjustments resulting from the casualty event, over (2) the amount paid for restoration of damage to the unit of property that also constitutes a restoration under the other criteria of Reg. §1.263(a)-3(k)(1) (excluding the casualty loss rule). Casualty-related expenditures in excess of this limitation are not treated as restoration costs under Reg. §1.263(a)-3(k)(1)(iii) and may be properly deducted if they otherwise constitute ordinary and necessary business expenses (for example, repair and maintenance expenses) under Code Sec. 162.
Election to Capitalize Repair and Maintenance Costs
The ﬁnal regulations include a new provision that allows a taxpayer to elect to treat amounts paid during the tax
year for repair and maintenance to tangible property as amounts paid to improve that property and as an asset
subject to the allowance for depreciation, as long as the taxpayer incurs the amounts in carrying on a trade or
business and the taxpayer treats the amounts as capital expenditures on its books and records used for regularly
computing income. A taxpayer that elects this treatment must apply the election to all amounts paid for repair and maintenance to tangible property that it treats as capital expenditures on its books and records in that tax year. A taxpayer making the election must begin to depreciate the cost of such improvements when the improvements are placed in service by the taxpayer under the applicable provisions of the code and regulations. The election is made by attaching a statement to the taxpayer’s timely ﬁled original tax return (including extensions) for the tax year in which the improvement is placed in service. Once made, the election may not be revoked.
Change in Method of Accounting
Separate procedures will be provided under which taxpayers may obtain automatic consent for a tax year beginning on or after January 1, 2012, to change to a method of accounting provided in the ﬁnal regulations. Although a taxpayer seeking a change in method of accounting to comply with these regulations generally must take into account a full adjustment under Code Sec. 481(a), it is expected that, for the speciﬁc situation where a taxpayer seeks to change to a method of accounting that is applicable only to amounts paid or incurred in tax years beginning on or after January 1, 2014, a limited Code Sec. 481(a) adjustment will apply, taking into account only amounts paid or incurred in tax years beginning on or after January 1, 2014, or at a taxpayer’s option, amounts paid or incurred in tax years beginning on or after January 1, 2012.
The ﬁnal regulations are eﬀective September 19, 2013, and apply to tax years beginning on or after January 1, 2014. Some provisions only apply to amounts paid or incurred in tax years beginning on or after January 1, 2013. Taxpayers may apply the new regulations to tax years beginning on or after January 1, 2012. T.D. 9636, 2013FED ¶47,036©2013 Wolters Kluwer. All rights reserved.
Code Sec. 162
CCH Reference – 2013FED ¶8600
CCH Reference – 2013FED ¶8620
CCH Reference – 2013FED ¶8753
Code Sec. 165
CCH Reference – 2013FED ¶9901
Code Sec. 167
CCH Reference – 2013FED ¶11,010
CCH Reference – 2013FED ¶11,018
CCH Reference – 2013FED ¶11,020
Code Sec. 168
CCH Reference – 2013FED ¶11,276P
Code Sec. 263
CCH Reference – 2013FED ¶13,700C
CCH Reference – 2013FED ¶13,701
CCH Reference – 2013FED ¶13,703
CCH Reference – 2013FED ¶13,704
CCH Reference – 2013FED ¶13,704K
Code Sec. 263A
CCH Reference – 2013FED ¶13,809
CCH Reference – 2013FED ¶13,811
Code Sec. 1016
CCH Reference – 2013FED ¶29,414
Tax Research Consultant
CCH Reference – TRC BUSEXP: 9,080
What is Better C Corp or S Corp for tax purposes?
An S corporation does not pay federal income tax as an entity on its income. Instead, all income items are passed through to shareholders and taxed at the shareholders’ individual tax rates. Avoidance of a C corporation’s perceived “double taxation” is a primary advantage to electing
S corporation status. (Double tax can be avoided by bonusing away the profit to employee/shareholders) However, unlike a C Corporation, an S Corporation’s income is taxable to shareholders when earned, whether or not the corporation distributes the income to them. Typically, the C Corp shareholder receives a W-2 to report their income on their personal income tax return. Alternatively, the S Corp shareholder receives a K-1 to report their income on their personal income tax return. Although a C Corporation can only use losses to offset corporate income (plus any carryover amounts), S corporation shareholders can generally use corporate losses immediately to offset income from other sources, subject to at-risk and passive activity rules. S corporations also offer the advantage of the same limited liability protection as C corporations and limited liability companies (LLCs).
C Corp Or S Corp for Setting Up a Business
Because an S corporation has a unique tax structure, it is important for S corporations and their shareholders to understand the S corporation qualification requirements, the distribution and loss limitations, as well as how and when items of income and expense are taxed. You probably feel a little confused or somewhat unsure as to what this may all mean. Or, how all these alternatives might be best utilized in your situation. Call us to arrange an appointment to discuss which is right for you.
IRS Fresh Start Program Helps Taxpayers Who Owe the IRS
IRS Tax Tip 2013-57, April 17, 2013
The IRS Fresh Start program makes it easier for taxpayers to pay back taxes and avoid
tax liens. Even small business taxpayers may benefit from Fresh Start. Here are three
important features of the Fresh Start program:
• Tax Liens. The Fresh Start program increased the amount that taxpayers can owe
before the IRS generally will file a Notice of Federal Tax Lien. That amount is now
$10,000. However, in some cases, the IRS may still file a lien notice on amounts less
When a taxpayer meets certain requirements and pays off their tax debt, the IRS may
now withdraw a filed Notice of Federal Tax Lien. Taxpayers must request this in writing
using Form 12277, Application for Withdrawal.
Some taxpayers may qualify to have their lien notice withdrawn if they are paying their
tax debt through a Direct Debit installment agreement. Taxpayers also need to request
this in writing by using Form 12277.
If a taxpayer defaults on the Direct Debit Installment Agreement, the IRS may file a new
Notice of Federal Tax Lien and resume collection actions.
• Installment Agreements. The Fresh Start program expanded access to streamlined
installment agreements. Now, individual taxpayers who owe up to $50,000 can pay
through monthly direct debit payments for up to 72 months (six years). While the
IRS generally will not need a financial statement, they may need some financial
information from the taxpayer. The easiest way to apply for a payment plan is to use
the Online Payment Agreement tool at IRS.gov. If you don’t have Web access you
may file Form 9465, Installment Agreement, to apply.
Taxpayers in need of installment agreements for tax debts more than $50,000 or longer
than six years still need to provide the IRS with a financial statement. In these cases,
the IRS may ask for one of two forms: either Collection Information Statement, Form
433-A or Form 433-F.
• Offers in Compromise. An Offer in Compromise is an agreement that allows
taxpayers to settle their tax debt for less than the full amount. Fresh Start expanded
and streamlined the OIC program. The IRS now has more flexibility when analyzing a
taxpayer’s ability to pay. This makes the offer program available to a larger group of
Generally, the IRS will accept an offer if it represents the most the agency can expect to
collect within a reasonable period of time. The IRS will not accept an offer if it believes
that the taxpayer can pay the amount owed in full as a lump sum or through a payment
agreement. The IRS looks at several factors, including the taxpayer’s income and
assets, to make a decision regarding the taxpayer’s ability to pay. Use the Offer in
Compromise Pre-Qualifier tool on IRS.gov to see if you may be eligible for an OIC.
Additional IRS Resources:
Online Payment Agreement tool
Fresh Start Notice of Federal Tax Liens
Form 12277, Application for Withdrawal
Understanding a Federal Tax Lien
Offer in Compromise Pre-Qualifier tool
Offer in Compromise
Electronic Payment Options Home Page
Payments (payment options)
Home Office Deduction: A Tax Break for Those Who Work from Home
Here is a tip from the IRS when it comes to Deductions Home Business on your tax return.
IRS Tax Tip 2013-36, March 19, 2013
If you use part of your home for your business, you may qualify to deduct expenses for the business use of your home. Here are six facts from the IRS to help you determine if you qualify for the home office deduction. Generally, in order to claim a deduction for a home office, you must use a part of your home exclusively and regularly for business purposes. In addition, the part of your home that you use for business purposes must also be:
your principal place of business, or a place where you meet with patients, clients or customers in the normal course of your business, or a separate structure not attached to your home. Examples might include a studio, workshop, garage or barn. In this case, the structure does not have to be your principal place of business or a place where you meet patients, clients or customers.
You do not have to meet the exclusive use test if you use part of your home to store inventory or product samples. The exclusive use test also does not apply if you use part of your home as a daycare facility.
The home office deduction may include part of certain costs that you paid for having a home. For example, a part of the rent or allowable mortgage interest, real estate taxes and utilities could qualify. The amount you can deduct usually depends on the percentage of the home used for business.
The deduction for some expenses is limited if your gross income from the business use of your home is less than your total business expenses.
If you are self-employed, use Form 8829, Expenses for Business Use of Your Home, to figure the amount you can deduct. Report your deduction on Schedule C, Profit or Loss From Business.
If you are an employee, you must meet additional rules to claim the deduction. For example, in addition to the above tests, your business use must also be for your employer’s convenience.
Deductions Home Business On Your Taxes
For more information, see Publication 587, Business Use of Your Home.
It’s available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Additional IRS Resources:
Form 8829, Expenses for Business Use of Your Home
Schedule C, Profit or Loss From Business
Publication 587, Business Use of Your Home
IRS YouTube Videos:
Home Office Deduction – English | Spanish | ASL
Page Last Reviewed or Updated: 18-Mar-2013
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Filling out your Living Trust Forms and doing the correctly, Hire a Lawyer!
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Tips to Filing A DBA Online For Your Business
DBA Filing Online is a new legal way to get your fictitious business name under your corporation or limited liability corporation for doing business as a new name. We have scoured the internet for some of the best DBA Filing Online companies and found that Legal Zoom is the best source to file your DBA online. Do you have memories of the days when you decided to open a business? You likely poured in hours and read whatever you could about home businesses in the niche. Take the tips and tricks from this piece to heart so that you can be on top of your field. Discuss your expenses with an accountant or tax professional.Things like work spaces in the home and mileage are able to be written off so be sure you’re keeping track of your DBA Filing Online. Keep track of the miles you have to drive for business purposes.You can end up getting a large tax write off for your new filing of DBA.
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Don’t try to operate your home business without out-of-pocket expenditures like DBA Filing Online. There are some free services you can take advantage of, but you need to be aware that sometimes you might have to pay money for certain tools in order to truly be successful. If you have youngsters in the family and find the cost associated with providing good care for them a burden, start a home business might be a good solution to get a good company for DBA Filing Online. You can work at home and take care of a child while you are able to make some money on the side as well. Choose a home based business that you like. If your business is enjoyable, you will exude enthusiasm that potential customers will take note of. This is extremely useful if you are working to broaden your products or business and need to file DBA online.
DBA Filing Online With Companies That Have Lawyers
A good rule to use for twice their cost to make the product. Some business may even charge close to three times what the cost of production. After all is said and done, you should be able to be enthusiastic about having a home business that you’re able to do well with. Although you want to be successful, you may have forgotten certain things or you may have needed motivation. Start putting these ideas to work for you right away in order to get your DBA Filing Online. go with the companies that people trust with Legal Zoom. Click on any of the banners to get started DBA Filing Online quick, easy, painless, and affordable.
How To File Divorce Online
File Divorce Online has never been easier with the legal system and the internet. If you are having marital problems and looking to File Divorce Online, the Legal Representatives at Legal Zoom and help you File Divorce Online and make it legal and official in any state that you reside in. Our legal advisors can help you File Divorce Online with our attorneys in every state. Do not spend thousands of dollars hiring an attorney to File Divorce Online, get it done quick and easy with Legal Zoom. See how we can help you by clicking the banners and filing your paper work online. Keep good records of all the contact that you interact with your lawyer. Write down any pertinent information like date and time, when you talked to each other, and what you talked about. This will allow you to take on any problems that can arise later about File Divorce Online.
File For Divorce Online
You do not always have to pay for your lawyer when you can File Divorce Online. There are quite a few public defenders who are great at their jobs at Legal Zoom. Lawyers help with things other than criminal defense. If you’re in a divorce or bankruptcy, you can use one to help you get what you deserve from the case. They will help you write out and understand contracts for Filing Divorce Online. You want to have the best communication possible with your lawyer on a regular basis.If your case has deadlines attached to it, then you need to provide all that your lawyer needs. This will only help your case to File Divorce Online with our legal representatives at Legal Zoom.
You have to be able to stay in contact with your lawyer when you are trying to File Divorce Online. One common complaints people have about lawyers is being unable to get in touch with their lawyer. You probably don’t want to wonder about things because he is out dealing with other divorce cases. If you hit another vehicle or another car hit you, you must be prepared to do what they ask of you when they ask it. There are specific legal guidelines that must be followed when it comes to automobile accident lawsuits. You can end up in a sticky situation if you fail to take your lawyer about Filing Divorce Online.
Communication is paramount when dealing with your lawyer when it comes to divorce paper work . Are they actively listening to your needs? Do they answer all the questions you comprehensive answers to your inquiries? Is your lawyer talking to you or at you? These questions are very important questions.If your lawyer is not communicating well with you, you should seek out a new one when you are trying to File Divorce Online.
There are countless lawyers out there who want your business, so you must take some time and see how one website compares to another, or just take our word for it, and choose Legal Zoom . Ask your lawyer about things that you can personally perform to cut down your expenses. You might be able to prepare the paperwork for your case. You may personally pick up any documents so your law office doesn’t add doing that to the courthouse when needed to cut down on expenses when it comes to File Divorce Online.
File Divorce Online Once and For All And Move On With Your Life
A useful tip to remember if you are skeptical about your lawyer is that you can always get another opinion. A second opinion can be a good idea before making any decisions to File Divorce Online. Ensure that you regularly contact your lawyer.If your lawyer takes a long time to get in touch, or does not properly explain what he is doing, or you did not make clear your expectations. If you haven’t set expectations, thank him and let him know to keep you apprised of anything that is happening to your case. If the second reason applies, you may have to find someone else to File Divorce Online.
Agree on when you will pay your lawyer before hiring a lawyer. Most lawyers will allow you to pay their fees after your settlement has been received, but you should not hesitate to ask about payment plans.
Take different factors in consideration when looking for a good lawyer. Use the information you have now gathered to help you make the best decision. Be a winner with the help of a great lawyer with your wants to File Divorce Online. Take our word for it, and choose a system that is easy to use, quick, painless, and our legal representatives at Legal Zoom with help you with your needs to File Divorce Online!
Important Facts about Mortgage Debt Forgiveness
If your lender cancelled or forgave your mortgage debt, you generally have to pay tax on that amount. But there are exceptions to this rule for some homeowners who had mortgage debt forgiven in 2012.
Here are 10 key facts from the IRS about mortgage debt forgiveness:
1. Cancelled debt normally results in taxable income. However, you may be able to exclude the cancelled debt from your income if the debt was a mortgage on your main home.
2. To qualify, you must have used the debt to buy, build or substantially improve your principal residence. The residence must also secure the mortgage.
3. The maximum qualified debt that you can exclude under this exception is $2 million. The limit is $1 million for a married person who files a separate tax return.
4. You may be able to exclude from income the amount of mortgage debt reduced through mortgage restructuring. You may also be able to exclude mortgage debt cancelled in a foreclosure.
5. You may also qualify for the exclusion on a refinanced mortgage. This applies only if you used proceeds from the refinancing to buy, build or substantially improve your main home. The exclusion is limited to the amount of the old mortgage principal just before the refinancing.
6. Proceeds of refinanced mortgage debt used for other purposes do not qualify for the exclusion. For example, debt used to pay off credit card debt does not qualify.
7. If you qualify, report the excluded debt on Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness. Submit the completed form with your federal income tax return.
8. Other types of cancelled debt do not qualify for this special exclusion. This includes debt cancelled on second homes, rental and business property, credit cards or car loans. In some cases, other tax relief provisions may apply, such as debts discharged in certain bankruptcy proceedings. Form 982 provides more details about these provisions.
9. If your lender reduced or cancelled at least $600 of your mortgage debt, they normally send you a statement in January of the next year. Form 1099-C, Cancellation of Debt, shows the amount of cancelled debt and the fair market value of any foreclosed property.
10. Check your Form 1099-C for the cancelled debt amount shown in Box 2, and the value of your home shown in Box 7. Notify the lender immediately of any incorrect information so they can correct the form.
Use the Interactive Tax Assistant tool on IRS.gov to check if your cancelled debt is taxable. Also, see Publication 4681, Canceled Debts, Foreclosures, Repossessions and Abandonments. IRS forms and publications are available online at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Additional IRS Resources:
Interactive Tax Assistant tool
Publication 4681, Canceled Debts, Foreclosures, Repossessions and Abandonments
Mortgage Forgiveness Debt Relief Act and Debt Cancellation
Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness
IRS YouTube Videos: Mortgage Debt Forgiveness
Beware of IRS Scam Emails
The IRS receives thousands of reports every year from taxpayers who receive emails out-of-the-blue claiming to be from the IRS. Scammers use the IRS name or logo to make the message appear authentic so you will respond to it. In reality, it’s a scam known as “phishing,” attempting to trick you into revealing your personal and financial information. The criminals then use this information to commit identity theft or steal your money.
The IRS has this advice for anyone who receives an email claiming to be from the IRS or directing you to an IRS site:
- Do not reply to the message;
- Do not open any attachments. Attachments may contain malicious code that will infect your computer; and
- Do not click on any links in a suspicious email or phishing website and do not enter confidential information. Visit the IRS website and click on ‘Identity Theft’ at the bottom of the page for more information.
Here are five other key points the IRS wants you to know about phishing scams.
1. The IRS does not initiate contact with taxpayers by email or social media channels to request personal or financial information;
2. The IRS never asks for detailed personal and financial information like PIN numbers, passwords or similar secret access information for credit card, bank or other financial accounts;
3. The address of the official IRS website is www.irs.gov. Do not be misled by sites claiming to be the IRS but ending in .com, .net, .org or anything other than .gov. If you discover a website that claims to be the IRS but you suspect it is bogus, do not provide any personal information on their site and report it to the IRS;
4. If you receive a phone call, fax or letter in the mail from an individual claiming to be from the IRS but you suspect they are not an IRS employee, contact the IRS at 1-800-829-1040 to determine if the IRS has a legitimate need to contact you. Report any bogus correspondence. Forward a suspicious email to firstname.lastname@example.org;
5. You can help the IRS and other law enforcement agencies shut down these schemes. Visit the IRS.gov website to get details on how to report scams and helpful resources if you are the victim of a scam.
Investment Tips For Retirement
Even very experienced investors can find the stock market difficult to navigate AND LEARN THESE investment tips for retirement. There is the chance to see big returns, but you can also see massive losses. Investing your money wisely will be easy thanks to the advice you’ve read here, so get started today!When you do buy stock, establish yourself a stopping point. When your stocks get to that point, sell immediately. However, if you think the stocks will rise again, hang on to them and wait a while. However, selling to minimize your losses is usually the best choice.Participate in an Internet investing forum. This type of forum will let you interact with other investors, and give you different strategies. You can share experiences and provide help for one another. If you join a forum, you’ll gain lots of investment tips that is not available elsewhere. Call Winther & company, Inc today at 805-5832720 to schedule an appointment on how you can plan for retirement with our certified financial advisors.
You should invest money in stocks that are damaged, but you should avoid companies that are. While you can get a great price on stocks during a temporary downturn, it is important to ascertain that it is indeed temporary. If a company misses a deadline because of a temporary situation, its stock can plummet as investors flee these investment tips. Some circumstances such as a financial scandal usually mean a company will never recover.Follow dividends of any business from which you purchase stock. This goes double for an investor who needs a steady income and can’t handle large losses, such as a retiree. When a company is profitable it usually pours the money back to the business or offers dividends to shareholders. It’s extremely important to know a dividend’s yield. This can be calculated by just knowing the annual dividends and dividing this number by the stock’s price.
When you start trading stocks, remember this cardinal rule of investment: Never invest money you cannot afford to lose. This is especially important when it comes to high-risk investments. Even if your investment choices are very safe ones, never forget that a total loss is always a possibility. The stock market is no place for money that you need for your everyday life expenses. When you first start out, keep things simple as you invest. It could be tempting to do the things you have learned right away, but if you’re new in investing it is good to focus on one thing that truly works and stick to it. This will reward you with smaller losses, bigger profits and a solid base of experience.
Cash isn’t necessarily profit. The flow of cash is vital to all financial operations, from your life to your investment portfolio. While is it nice to be able to reinvest some cash or spend some of your gains, you have to keep money on had so you can afford paying your bills. Try to retain a six month emergency savings balance, as a “just in case” precaution.There are many options for safe investment when it comes to investing in stocks. Use this advice to make safer and more successful stock market investments. Have you ever noticed that the things you buy every week at the grocery and hardware stores go up a few cents between shopping trips? Not by much…just by a little each week but they continue to creep up and up if you don’t use our investment tips.
You will be surprised at how much you can save by buying a twenty pound bag of rice as opposed to a one pound bag but don’t forget that it must be kept in a rat proof container. You can buy some clothing items such as men’s socks and underwear because those styles don’t change, avoid buying children’s and women’s clothing, those styles change and sizes change too drastically. Try to acquire and keep a two year supply of these items and you can save hundreds of dollars with these investment tips.
Call Winther & company, Inc today at 805-5832720 to schedule an appointment on how you can plan for retirement with our certified financial advisors