Name: Christopher Axene, CPA
Posts by Christopher Axene, CPA:
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 “
Employers who have erroneously treated workers as nonemployees or independent contractors now have an opportunity to get into compliance with the IRS through a low-cost, voluntary reclassification program. Read the rest of this entry “
Last week, President Obama outlined the American Jobs Act, his jobs creation bill, which he will soon send to Congress. The bill includes a number of tax components which could impact your business, if the legislation passes Congress. Among them: Read the rest of this entry “
Ohio business and individual taxpayers, as well as their tax professionals, faced a great amount of uncertainty in 2010 as they waited to see what tax rules would apply to them for 2011 and 2012, until the 2010 Tax Relief Act was signed into law in December. Now, the recently approved debt ceiling legislation averted another immediate crisis, but continued this guessing game as Americans wait to see if comprehensive tax reform will be accomplished. Read the rest of this entry “
So much for the airline tax refund you may have been expecting.
If you traveled by air and purchased a plane ticket on or before July 22, 2011, for a trip leaving July 23 or later, you may have heard that you may be eligible for a refund on the air transportation excise tax you paid. Recent legislation means there will not be a refund. Read the rest of this entry “
If you traveled by air and purchased a plane ticket on or before July 22, 2011, for a trip leaving July 23 or later, you may be entitled to a refund on the air transportation excise tax you paid. Read the rest of this entry “
If your manufacturing company has $1 million or more in export sales each year, or if you sell products that are ultimately destined for use overseas, you may benefit from a tax tool that was extended along with the Bush tax cuts in December. Read the rest of this entry “
A provision of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 decreased the employee portion of the Social Security tax from 6.2 percent to 4.2 percent for 2011. Now you have a rare opportunity for to increase your 401(k) contribution without any change in your net take-home pay in 2011 when compared to 2010. Read the rest of this entry “
While some may be breathing a sigh of relief now that the brokered tax package has passed through Congress and is being signed by President Obama, others among us are becoming increasingly alarmed at the “temporary” nature of our tax laws – and the impact these temporary fixes will have on our long-term planning. Read the rest of this entry “
Actually, federal agencies will soon be required to communicate more clearly with us. Earlier this month, President Obama signed the Plain Writing Act, which will require federal government agencies, including the IRS, to write public documents in easy-to-understand language. This means items such as tax forms, federal student aid applications, Veteran’s Administration forms and even form letters from the IRS will receive a makeover. Read the rest of this entry “
Looking into the Future: A Summary of Healthcare Law Changes for 2013 and Beyond
The Patient Protection and Affordable Care Act and the related Health Care and Education Reconciliation Act (which are collectively referred to as the healthcare legislation) were signed into law in March. The new laws contain a large number of tax changes. Some have nothing to do with healthcare, some won’t kick in for several years, some are effective right now, and some are even retroactively effective. Read the rest of this entry “
The Patient Protection and Affordable Care Act and the related Health Care and Education Reconciliation Act (which are collectively referred to as the healthcare legislation) were signed into law in March, and they include lots of tax changes. Some have nothing to do with healthcare, some won’t kick in for several years, some are effective right now and some are even effective retroactively.
When President Obama signed into law last week the Small Business Jobs and Credit Act of 2010, the new law created a $30 billion lending fund that will allow the U.S. Department of Treasury to invest in small to medium-sized financial institutions that will be encouraged to increase small business lending. Here is a breakdown of the four lending initiatives established by the law. Read the rest of this entry “
Small Business Lending Funding Act Establishes Four Lending Programs
When President Obama signed into law last week the Small Business Jobs and Credit Act of 2010, the new law created a $30 billion lending fund that will allow the U.S. Department of Treasury to invest in small to medium-sized financial institutions that will in turn be encouraged to increase small business lending. Here is a breakdown of the four lending initiatives established by the law.
Small Business Lending Fund. Administered by the U.S. Treasury, the Small Business Lending Fund will award a capital investment to eligible banks with assets under $10 billion. The banks can receive up to a small percentage of their risk-weighted assets, and receive essentially an incentive loan that must be repaid within 10 years. The banks must lend additional funds to small businesses as well as appropriate advertising. The fund also includes a pilot program that will allow non-profit intermediaries to make loans to small businesses at 1 percent interest over a 20-year term. The non-profit intermediaries can loan up to $200,000 per small business through the pilot program.
State Small Business Credit Initiative. A seven-year State Small Business Credit Initiative will be administered by the U.S. Treasury. Treasury will allocate federal funds to participating states with capital access programs. States can qualify for the funds by demonstrating that their capital access programs meet performance and eligibility requirements, including access to capital for businesses with less than 500 employees, minority-owned businesses and those in underserved communities. New programs can also qualify for the federal funds.
Small Business Early Stage Investment Program. The new law amends the Small Business Investment Act of 1958 to establish an early-stage investment program to provide equity investment financing for early-stage small businesses. The program will be managed by the administrator of the Small Business Administration.
Small Business Borrower Assistance Program. Also as part of the Small Business Jobs and Credit Act of 2010, the Small Business Administration is directed to implement an assistance program that provides payments to lenders of principle and interest on qualifying guaranteed business loans of up to $300,000. Every borrower receiving a qualifying small business loan will be automatically enrolled in the program unless the borrower opts out. The SBA’s administrator is required to commit an amount to each borrower equal to 6 percent of the principle disbursed amount of the borrower’s qualifying loan.
The Small Business Jobs and Credit Act of 2010 also contains roughly $12 million in tax breaks and incentives. We will be reporting on the various tax implications of the new law in the weeks to come.
Regulations recently proposed by the IRS will eliminate the ability to make payroll tax deposits using paper coupons. The proposed rule changes are meant to coincide with the Treasury’s move to no longer maintain the paper coupon system after December 31, 2010. Read the rest of this entry “
Everyone wants to know what tax legislation Congress will approve in the coming months. In reality, Congress has little incentive to act on anything ahead of the November mid-term elections other than what to do with the expiring Bush tax cuts. At the risk of quickly being outdated, here are my predictions on some of the most commonly discussed tax legislation provisions. Read the rest of this entry “
Although R & D tax credits expired at the end of last year, Congress has made a few attempts to continue them by passing an extenders bill. So far, those attempts have not been successful, but most tax experts believe R&D credit will be passed and that Congress will make the tax breaks available for 2010.
Click here to learn more about R&D credits and how they can help your business.
When President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law last month, the legislative and executive branches of the U.S. government enacted the most sweeping changes in financial reform legislation since the 1930s. The new law will impact both businesses and individuals. Below are a few of the highlights. Read the rest of this entry “
Businesses could see significant changes in how they report transactions on 1099 forms, thanks to a provision in the Patient Protection and Affordable Care Act. Read the rest of this entry “
The expected increase in individual income tax rates next year has some small business owners wondering if now is the time to change their entity structures. Which structure is best for your business is a complex question – and the answer is different for everyone. The following are issues to consider if you are facing this question. Read the rest of this entry “
Yes, there is. If your small company develops products or technology that diagnose, treat or prevent diseases, you may be eligible to apply for tax credits or grants. Read the rest of this entry “
On June 30, Congress passed H.R. 5623, the Homebuyer Assistance Improvement Act of 2010, and President Obama has now signed it. The new law provides the first-time homebuyer credit to taxpayers who were in contract before May 1 but couldn’t meet the June 30, 2010, closing date as required in the prior law. Read the rest of this entry “
In March, President Barack Obama signed the Hiring Incentives to Restore Employment (HIRE) Act. The HIRE Act contains several tax items, the biggest of which is a payroll tax holiday for employers who hire qualifying workers – someone who has not worked more than 40 hours during the last 60 days. This employer benefit is for qualifying new employees hired after Feb. 3, 2010, and before Jan. 1, 2011, however, only wages paid after March 18, 2010 qualify for the payroll tax holiday. Read the rest of this entry “