Name: Christopher Axene, CPA, Principal
Posts by Christopher Axene, CPA, Principal:
If you’re about to acquire, produce or improve real or tangible personal property, and then turn around and use the property in a trade of business for income, stop right there. Under the Internal Revenue Code, you’re required to capitalize certain amounts of money you invested into the property. Read the rest of this entry “
We’ve read for weeks that a government shutdown was possible, but at 12 a.m. this morning, it happened. It has been 17 years since the last government shutdown, and you, along with the rest of the American people, are probably wondering how the shutdown will impact their lives. Fortunately, last week the Internal Revenue Service published “FY 2014 Shutdown Contingency Plan (During Lapsed Appropriations) Non-Filing Season,” a set of guidelines that explains what will go on at the IRS during a shutdown. Read the rest of this entry “
This article discusses the changes to individual tax payers that are in a legal same-sex marriage.
Earlier this year the Supreme Court declared that section 3 of the Defense of Marriage Act (DOMA) was unconstitutional. Section 3 of DOMA required that same-sex spouses are to be treated as unmarried for purpose of federal law. It is now recognized that same-sex couples that were legally married in states that recognize same-sex marriages, will be treated as married for federal tax purposes, even if the state they are currently residing in does not allow same-sex marriages. The same is true for couples married legally in a foreign jurisdiction. This now allows for same-sex married couples to file with the status of “married filing jointly” (MFJ) or “married filing separately” (MFS). Read the rest of this entry “
ACT FAST: Limited Time Offer for RMDs
Thanks to a hot-off-the-presses provision in the new tax law, taxpayers over 70 ½ have a very limited window to address 2012 required minimum distributions (RMDs) from their retirement accounts.
Here’s what happened: an incentive for donating your RMDs directly to charity tax-free expired in 2011, so at the end of 2012 many of you weren’t sure what to do. Some of you may have taken your RMD as usual and used that money toward regular living expenses, but other retirees who typically donate their RMD to charity may have taken a different approach. Read the rest of this entry “
By now you’ve heard that last minute actions by Congress and the President pulled us off the brink of the fiscal cliff. But, do you know what the American Taxpayer Relief Act means for you and your business?
Overall, the deal is good news for most Americans. While it’s true that the tax rates for 99 percent of taxpayers will not change, everyone who pays payroll taxes will see a slight increase. Here’s what you, as an individual taxpayer, should expect in the year to come: Read the rest of this entry “
Tax treatment of property repairs has long frustrated business owners and accountants alike. The system has been confusing, hard to follow and seemingly eternally inconsistent. Recent changes to the Internal Revenue Code have streamlined the treatments of property repairs, but not all the changes are as taxpayer-friendly as you may have hoped. Read the rest of this entry “
Downsizing by companies has been a fact of life over the past several years. As a part of this process companies may have paid severance payments to employees who were involuntarily terminated due to either: (1) reduction in force (“RIF”) initiatives or (2) plant closings or other similar conditions.
Historically the IRS has argued that such payments are subject to FICA tax withholding in addition to income tax withholding at the time of payment. In 2002, the Court of Federal Claims in CSX Corp v. U.S. held that severance payments made by CSX were not subject to FICA tax and thus CSX was entitled to refunds of amounts previously withheld. The IRS appealed and in 2008 the Court of Appeals for the Federal Circuit reversed the Court of Claims holding that such payments were subject to FICA tax. Read the rest of this entry “
Even though the Supreme Court’s decision was a few months ago at this point, healthcare reform is still getting a lot of coverage in the media. Individuals and business owners are still trying to get their hands around what it will mean for them and what they’ll have to do to comply with the new law.
Most discussions about how healthcare reform will impact taxes have centered on the so called “Individual Mandate.” But, health care reform will lead to other tax changes, too. One such tax chance is the addition of a .9% Medicare tax surcharge. Read the rest of this entry “
“Obama Care is terrible!” “Health care reform is great!” Depending on your political stripes, you may have differing views on the Affordable Care Act. Regardless of whether you love it or hate it, health care reform will impact your business in the years to come. Read the rest of this entry “
Employers may surprised to find that they owe more federal taxes on employee wages than they expected for 2011 and they could continue to pay more in 2012. Ohio, Michigan, Indiana, Kentucky and Pennsylvania are just a few of the 21 states that accepted a loan from the federal government for unemployment insurance that have outstanding balances on the loan – and as a result are collecting more federal unemployment taxes. Read the rest of this entry “