PBMares Accounting Blog

Still filing a paper tax return? Be sure you know the “timely mailed = timely filed” rule.

Posted by Carolyn Irwin, CPA, MSA on Apr 13, 2017 9:33:27 AM

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Topics: Tax Bites, Tax Planning

Are you eligible for the American Opportunity Credit?

Posted by Michael Kennison, CPA , CIT on Mar 28, 2017 11:14:00 AM

If you have a child in college, you may be eligible to claim the American Opportunity credit on your 2016 income tax return. If, however, your income is too high, you won’t qualify for the credit — but your child might. There’s one potential downside: If your dependent child claims the credit, you must forgo your dependency exemption for him or her. And the child can’t take the exemption.

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Topics: Tax Bites, Tax Planning

Tangible property safe harbors help maximize deductions

Posted by Jennifer French, CPA on Mar 1, 2017 1:03:20 PM

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Topics: Tax Bites, Tax Planning

Do you need to file a 2016 gift tax return by April 18?

Posted by Donald Knotts, CPA on Feb 23, 2017 9:30:00 AM

Last year you may have made significant gifts to your children, grandchildren or other heirs as part of your estate planning strategy. Or perhaps you just wanted to provide loved ones with some helpful financial support. Regardless of the reason for making a gift, it’s important to know under what circumstances you’re required to file a gift tax return.

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Topics: Tax Bites, Tax Planning

The “manufacturers’ deduction” isn’t just for manufacturers

Posted by Gail Teigeler, CPA on Feb 8, 2017 8:24:00 AM

The Section 199 deduction is intended to encourage domestic manufacturing. In fact, it’s often referred to as the “manufacturers’ deduction.” But this potentially valuable tax break can be used by many other types of businesses besides manufacturing companies.

Sec. 199 deduction 101

The Sec. 199 deduction, also called the “domestic production activities deduction,” is 9% of the lesser of qualified production activities income or taxable income. The deduction is also limited to 50% of W-2 wages paid by the taxpayer that are allocable to domestic production gross receipts.

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Topics: Tax Bites, Tax Planning

The investment interest expense deduction: Less beneficial than you might think

Posted by Donald Knotts, CPA on Jan 24, 2017 2:26:16 PM

Investment interest — interest on debt used to buy assets held for investment, such as margin debt used to buy securities — generally is deductible for both regular tax and alternative minimum tax purposes. But special rules apply that can make this itemized deduction less beneficial than you might think.

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Topics: Tax Bites, Tax Planning

2017 Q1 tax calendar: Key deadlines for businesses and other employers

Posted by Lori Roberts, CPA on Jan 6, 2017 4:29:26 PM

fHere are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2017. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements.

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Topics: Tax Bites, Tax Planning

Roth 401(k) conversions may suit your Millennial employees

Posted by Nancy S. Nunn, CPA/BV on Dec 2, 2016 3:30:00 PM

 

Could your company’s benefits package use a bit of an upgrade? If so, one idea to consider is adding an option for employees to convert their regular 401(k)s to Roth 401(k)s.

Under a Roth 401(k), participants make after-tax contributions to a qualified plan and receive tax-free distributions, provided the funds are in the plan for at least five years from the date of the initial Roth contribution. Thus, while participants pay a tax on the income that was the source of the contribution, the earnings on the contributions are tax-free.

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Topics: Tax Bites, Tax Planning

Ensure your year-end donations will be deductible on your 2016 return

Posted by Joseph S. Mastaler, Jr., CPA, CGMA on Dec 2, 2016 9:28:44 AM

 

Donations to qualified charities are generally fully deductible, and they may be the easiest deductible expense to time to your tax advantage. After all, you control exactly when and how much you give. To ensure your donations will be deductible on your 2016 return, you must make them by year end to qualified charities.

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Topics: Tax Bites, Tax Planning

It’s critical to be aware of the tax rules surrounding your NQDC plan

Posted by Sean R. O’Connell, CPA/PFS, CGMA on Dec 2, 2016 8:16:00 AM

Nonqualified deferred compensation (NQDC) plans pay executives at some time in the future for services to be currently performed. They differ from qualified plans, such as 401(k)s, in that:

  • NQDC plans can favor certain highly compensated employees,
  • Although the executive’s tax liability on the deferred income also may be deferred, the employer can’t deduct the NQDC until the executive recognizes it as income, and
  • Any NQDC plan funding isn’t protected from the employer’s creditors.

They also differ in terms of some of the rules that apply to them, and it’s critical to be aware of those rules.

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Topics: Tax Bites, Tax Planning