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

The Sandwich Generation – taking a bite out of the burden

Posted by Louise Clayton-Kastenholz on Mar 10, 2017 1:53:39 PM

They call us the Sandwich Generation, the middle layer between grown or growing children who depend on us and parents who also depend on us.   Being in this position can sap a family’s resources physically, emotionally, and, of course, financially. 

Fortunately, if you are providing for an elderly parent or other family member, there are some potential tax breaks available to help ease the burden. First of all, there is the dependency exemption, allowing a deduction of up to $4,050 per dependent.  For a family in the 25% tax bracket, that translates to a savings of just over $1,000.

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Topics: Tax Planning, Estate 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

New Item on the Vacation Planner - Pay Taxes

Posted by Louise Clayton-Kastenholz on Feb 16, 2017 8:15:38 AM

It's February and you're thinking about that dream vacation to an island in the sun, or an exciting discovery of another country's history and culture.   That's great, but before you book that ticket and renew your passport, make sure that you are up to date on your taxes.

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Topics: 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

New Year’s Resolution: Create a Financial Plan

Posted by Louise Clayton-Kastenholz on Dec 29, 2016 9:25:06 AM

Does it feel like just a few weeks ago that we ushered in 2016?  It seems that every year goes by more quickly than the one before.  And each year we make a few promises to ourselves that for a variety of reasons never come to fruition.  So perhaps we should make a resolution to keep at least one resolution this coming year.

The usual resolutions seem to revolve around a few general themes:  The physical (to lose weight or to end a bad habit), the philosophical (to be more generous or to be a better person in some way), or the practical (to get organized or to achieve a goal).   Some people might consider financially-oriented resolutions to be in a separate category, but I think that they more properly belong in the categories I’ve already listed.  In fact, I think that the resolution that is most worth keeping this year is to stop putting our financial affairs in some category by themselves.

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Topics: Tax Planning, Estate Planning