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 ‘Tax Deductions’ 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

Are you a business owner counting down the days to the tax deadline?

Are you looking for some business tax tips on deductions that you may have missed?

Tax Tips

Following up on business expenses that can generate a tax deduction can be time-consuming, especially if you are not familiar with them. Trying to figure out which ones you qualify for may be difficult.

Having a guideline to follow can help.
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Tax Deductions and You – What You Need to Know

Posted by Mark On February 8th

Tax Deductions and You - What You Need to Know

Over the past couple of months we have provided tips about tax deductions. Whether you are familiar with taxes and accounting or not, we hope you have learned more about what is deductible and what is not. In case you haven’t read this information, you can download it as a FREE eBook by clicking the picture above. Or simply read on and we’ll give you a summation of our posts on what you need to know about tax deductions.

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4: What You Need to Know About Mortgage Interest

Posted by Mark On January 18th

What You Need to Know About Mortgage Interest

This is the fourth installment of Tax Deductions & You: What You Need to Know which can also be downloaded from our free eBook library.

Although most people understand that mortgage interest is deductible, many people may not be aware that there are certain situations in which it actually creates a greater savings not to claim a deduction as mortgage interest.

Under Treasury Regulation 1.163-10T(o) a taxpayer may elect to treat mortgage debt as not secured by a qualified residence.

Once this election is made, it is effective for all subsequent years and can only be revoked with IRS permission. The advantage of this election is if a taxpayer has allowable mortgage interest that is limited by the $1,000,000 or $100,000 rules on indebtedness.

Let’s say you have a home equity loan that is used for a business. The interest deducted on a business return or “Schedule C”, in most cases, will create a greater tax savings than if the interest was deducted as mortgage interest.

Here’s an example:

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What Do You Need to Know About Student Loan Interest?

This is the third installment of Tax Deductions & You: What You Need to Know which can also be downloaded from our free eBook library.

A student loan is designed to help students pay for university or college. It is a calculated amount that should assist with the cost of tuition, books, and living expenses. This loan may differ from other types of loans in that the interest rate may be substantially lower. In addition, the repayment schedule may be deferred while the student is still in education.

Student loan interest is another form of interest that is deductible, but with limitations. These limitations are as follows:

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What You Should Know About Home Equity Loan Interest

This is the second installment of Tax Deductions & You: What You Need to Know which can also be downloaded from our free eBook library.

Any loans that fall under the nondeductible category need to be reviewed along with your cash or equity availability. If possible, they also need to be re-characterized to a deductible form of interest.

An example of this would be having availability on a home equity loan (balance after transfer must be below $100,000) and paying off an auto loan or credit card. This will increase cash flow two fold:

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1: Know What is Tax Deductible and What’s Not

Posted by Mark On October 19th

Know What is Tax Deductible and What’s Not

This is the first installment of Tax Deductions & You: What You Need to Know which can also be downloaded from our free eBook library.

When tax time roles around, you will need to take a look at the various types of loans and credit lines to see which are tax deductible and which are not. These may include:

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So, you’ve made it to the end of the year.

Taxes (Photo courtesy of David Reber's Hammer Photography)

Finish up those small business tax strategies for 2011 and you can start the new year ready to go!

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How to Maximize Your Itemized Deductions

Posted by Mark On September 28th

Tax Deductions & You – What You Need to Know

No one likes being audited by the IRS. In fact, last year, approximately 1.4 million taxpayers were audited, and I can’t imagine a single person enjoyed the experience. But when you learn how to properly take advantage of itemized deductions on your tax returns, suddenly tax accounting isn’t quite so stressful.

I don’t want any of you to face the stresses that come along with being audited which is why I wrote a new eBook that you can download for free, called…

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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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