Cash Flow Planning for Life - Helping you reach your personal & professional financial goals.

Cash Flow Planning for Life

Helping you reach your personal & professional financial goals.

Archive for the ‘Income Tax’ Category

Happy Monday to you!

We wanted to assure you knew about this wonderful resource provided by the IRS regarding “Giving Tuesday” (tomorrow, November 28, 2017).

What is Giving Tuesday?

Giving Tuesday is an annual event celebrated the week after Thanksgiving to kick off the season of charitable giving. Taxpayers making donations may be able to deduct them on their tax return. As people are deciding where to make their donations, the IRS has a tool that may help.

What is the IRS Select Check Tool?

Exempt Organizations Select Check on IRS.gov is a tool that allows users to search for charities. It provides information about an organization’s federal tax status and filings.

Here are four facts about EO Select Check:

  1. Donors can use it to confirm an organization is tax exempt and eligible to receive tax-deductible charitable contributions.
  2. Users can find out if an organization had its tax-exempt status revoked. A common reason for this is that the organization did not file its Form 990 or notices annually as required.
  3. EO Select Check does not list certain organizations that may be eligible to receive tax-deductible donations. This includes churches, organizations in a group ruling, and governmental entities.
  4. An organization’s “doing business as” name is not searchable. Search using an organization’s legal name instead.

Taxpayers can also use the Interactive Tax Assistant, Can I Deduct my Charitable Contributions? to help determine if a charitable contribution is deductible.

Enjoy!

Mark & the Makara-Associates Team

I would like to take this opportunity to say “Thank You” to our clients and our web followers of Makara & Associates. This month marks our company’s 5th Year Anniversary. We could not have achieved this continued success without the support of our clients and people like you.

Due to this continued growth, I am happy to announce that we have welcomed two new staff members to our team at Makara & Associates. We would like to introduce you to Stan English and Theresa Cosey. Please feel free to contact them at any time with questions regarding your tax returns or other accounting needs.

As we advance into 2012, the staff at Makara & Associates is continuing to find ways to ensure that you receive unparalleled customer service. In addition to increasing our staff, we have also created online resources which provide you with information and answers to your questions, 24 hours a day, 7 days a week.

Some of these resources include a new website, www.Makara-Assoc.com. This website provides you with in-depth information about various services that are available to you through Makara & Associates. It also includes a “Learn More” page, which outlines common questions about accounting practices, payroll, tax planning, controllership, Social Security, Quickbooks, and much more, providing you with comprehensive answers to these questions. In addition, we have also implemented a Blog site, www.cashflowplanningforlife.com, which further provides tips and informational resources about everything to do with accounting and financial stability for you, your family, and your business.

Again, we thank you for your continued loyalty to Makara & Associates, your referrals, and for your help in making the past 5 years a success. We look forward to many more to come!

Wishing you and your loved ones a wonderful Holiday season and a happy, prosperous New Year!

Sincerely,

Mark Makara and the Staff at Makara & Associates

P.S. You can also connect, follow, or like us on:

IRS announces increase in standard mileage rate for business

If you deduct vehicle mileage on your tax return(s), you’ll be happy to know that the IRS has increased the standard mileage rate for business, medical, and moving expenses. The new rate is increased 4.5 cents per mile and it goes into effect for miles driven starting July 1, 2011 through December 31, 2011.

I encourage you to update your mileage log/calendar as of June 30, 2011 and record your odometer reading(s) on those vehicles. It would also be helpful to attach an oil change or other maintenance receipt from a third party to back up any mileage reading as of June 30th.

Did you receive notice of this increase in standard mileage rate for business from your current accountant? Does your C.P.A provide you with a free eBook library where you can learn about:

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7 Things You Should Know About the Tax Consequences of Debt Forgiveness

Over the past few weeks I’ve given you some valuable insight in regards to how the IRS will treat your short sale or foreclosure when you file your income taxes. In case you haven’t read this information, you can download it for FREE from my eBook library. Or simply click “read more” where I’ll give you a summation of my posts on debt forgiveness.

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Foreclosed Home (Photo courtesy of Mike Licht) - Foreclosure/Short Sale taxes

This is the seventh tip in our series 7 Things You Should Know About the Tax Consequences of Debt Forgiveness which is also available as a free eBook from your Fort Myers Accounting Firm.

It is possible for you to receive multiple tax forms (1099A & 1099C) in the same year. This is based on a variety of scenarios, depending on how you file your 1040 in the case of foreclosure taxes or short sale taxes.

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IRS Form 1099 A

This is the sixth tip in our series 7 Things You Should Know About the Tax Consequences of Debt Forgiveness which is also available as a free eBook from your Naples Accounting Firm.

If your home has been foreclosed on by the bank, you will typically receive another one of the 1099 IRS Forms. This one is IRS Form 1099- A and it will come from your lender. This will contain several components of relevant information. You will need the information on Form 1099-A to report the foreclosure properly on your tax return.

Here is some important information to know about a foreclosure as it relates to your taxes:

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IRS Form 1099 C

This is the fifth tip in our series 7 Things You Should Know About the Tax Consequences of Debt Forgiveness which is also available as a free eBook from your Fort Myers Accounting Firm.

The 1099 IRS Forms are used by various entities to report income that they have perceived you have earned.

For example: A bank issues you a credit card. You charge $1,000 and never make payments. After some time, the bank will issue a Form 1099-C to you. They are also reporting the $1,000 as income you have earned, to the IRS.

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#4 – IRS Form 982 – Insolvency

Posted by Mark On March 17th

IRS Form 982 - Insolvency

This is the fourth tip in our series 7 Things You Should Know About the Tax Consequences of Debt Forgiveness which is also available as a free eBook from your Naples Accounting Firm.

IRS Form 982 generally says that “the amount by which you benefit from the discharge of indebtedness is included in your gross income. However, under certain circumstances described in section 108, you may exclude the amount of discharged indebtedness from your gross income.” The specific instructions are contained in section 108 of the Internal Revenue Code.

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Emergency Economic Stabilization Act - Bailout-house2ndVOTE

This is the third tip in our series 7 Things You Should Know About the Tax Consequences of Debt Forgiveness which is also available as a free eBook from your Fort Myers Accounting Firm.

The Emergency Economic Stabilization Act of 2008, is most commonly referred to as “the bailout” of the U.S. financial system. As most people are aware, it provided up to $700 billion to the Secretary of the Treasury to buy mortgages and other assets that were clogging the balance sheets of financial institutions and making it difficult for working families, small businesses, and other companies to access credit.

However, there were other components of this Act that you, as a taxpayer, should be aware of. Basically, the Emergency Economic Stabilization Act of 2008 focused on these 3 components:

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#2 – Mortgage Debt Relief Act of 2007

Posted by Mark On March 3rd

Mortgage Debt Relief Act of 2007

This is the second tip in our series 7 Things You Should Know About the Tax Consequences of Debt Forgiveness which is also available as a free eBook from your Naples Accounting Firm.

A foreclosure or short sale of your home can be a double edged sword. Not only do you lose your home, but then you may have to pay taxes on the forgiven debt amount. Talk about ‘beating a dead horse’ right?

In recent years, with the rise of short-sales and foreclosures, the Mortgage Debt Relief Act of 2007 was passed to help homeowners who have found themselves in this predicament.

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