Tax Credit for Contributions to Qualifying Charitable Organizations in Arizona 2013

A credit of up to $400 for “married couples filing jointly” and up to $200 for all other filers is available for cash contributions to a qualifying charitable organization (QCO). This includes those groups that provide services to the chronically ill or disabled children.  Starting in 2013, you can take an additional credit for contributions[ … ]

Final Regulations: Capitalization of tangible property costs

Final regulations issued on the capitalization of tangible property costs – See Sample Policies In September of this year, the IRS released final regulations on the capitalization of tangible property costs. The final regulations provide an important opportunity—the de minimis safe harbor election—that allows eligible businesses to immediately expense certain property that would otherwise have[ … ]

2013 may be your last chance for a “charitable IRA rollover”

If you’re age 70½ or older, you can make a direct contribution — up to $100,000 — from your IRA to a qualified charitable organization in 2013 without owing any income tax on the distribution. This “charitable IRA rollover” can be used to satisfy required minimum distributions. The American Taxpayer Relief Act of 2012 (ATRA)[ … ]

Expiration date for home mortgage debt forgiveness rapidly approaching

Since 2007, homeowners have been allowed to exclude from their taxable income up to $2 million in cancellation-of-debt (COD) income ($1 million for married taxpayers filing separately) in connection with qualified principal residence indebtedness (QPRI). The exclusion had been available only for debts forgiven through 2012, but Congress extended it. Now that expiration date —[ … ]

IRS issues final regulations on tangible property expenses

The regulations (IRS T.D. 9636) provide guidance on how to comply with Sections 162 and 263 of the Internal Revenue Code. These sections require amounts paid to acquire, produce or improve tangible property to be capitalized but allow amounts for incidental repairs and maintenance of property to be deducted — potentially saving you more tax[ … ]

Start planning now if you’d like to deduct medical expenses

Medical expenses that aren’t reimbursable by insurance or paid through a tax-advantaged account (such as a Health Savings Account or Flexible Spending Account) may be deductible — but only to the extent that they exceed 10% of your adjusted gross income. Before 2013, the floor was only 7.5% for regular tax purposes. (Taxpayers age 65[ … ]

IRS makes more same-sex couples eligible for federal tax treatment as a married couple

In response to the U.S. Supreme Court’s June decision regarding same-sex marriage, the IRS recently clarified that married same-sex couples will be treated as married for all federal tax provisions in which marriage is a factor, such as filing status, dependent exemptions and child credits, and gift and estate tax breaks. Significantly, the Supreme Court[ … ]

Owners of leasehold, restaurant and retail properties must act soon to enjoy extended depreciation-related breaks

In January, Congress extended some depreciation-related tax breaks that can benefit owners of leasehold, restaurant and retail properties: 50% bonus depreciation. Congress extended this additional first-year depreciation allowance to qualifying leasehold improvements made in 2013. Section 179 expensing. Congress revived through 2013 the election to deduct under Sec. 179 (rather than depreciate over a number[ … ]

You can still use ESA funds to pay elementary and secondary school costs

As the kids head back to school, it’s a good time to think about Coverdell Education Savings Accounts (ESAs). One major advantage of ESAs over another popular education saving tool, the Section 529 plan, is that tax-free ESA distributions aren’t limited to college expenses; they also can fund elementary and secondary school costs. That means[ … ]