Cryptocurrencies and Tax Implications

Guidelines on How the IRS is Dealing with Virtual Currencies

As our world has become more and more “digital,” it was only a matter of time before cryptocurrencies were developed.  One of the first of these virtual currencies was Bitcoin, and the Bitcoin network came online in 2009. Since then, additional cryptocurrencies have been developed.

Cryptocurrencies are generally utilized for transactions by tech-savvy individuals and have a comparable value in real currency or take the place of real currency. These virtual currencies can be purchased with or exchanged into U.S. dollars, euros and other real or virtual currencies. 

Do You Benefit from the Extender Bill?

Bill Includes a Number of Extenders that Retroactively Apply to 2017 Returns

Needless to say, these last-minute changes may create a problem for taxpayers who have already filed their returns and will need to file amended returns to take advantage of these extenders.  The retroactive changes will cause the IRS some headaches as well.  Since the 2017 forms do not accommodate some of the extended provisions, the IRS will have redesign and issue updated forms or provide workaround procedures. 

Limits on Entertainment Deductions Under New Tax Law

New Tax Reform Bill and Business-Related Deductions

The GOP’s tax-reform bill that President Trump signed on December 22nd of last year eliminated the business-related deduction for entertainment, amusement or recreation expenses, effective beginning in 2018. If you are a business owner who is accustomed to treating clients to sporting events, golf getaways, concerts and the like, this is bad news for you.

Will Your 2018 Withholding Be Right?

Modified Withholding Tables  for 2018

One of the first trouble spots of the new tax reform is the W-2 withholding for 2018.  Passage of the new law in late December hasn’t given the IRS much time to develop new withholding tables. This can be a big issue, as the recent Tax Cuts & Jobs Act (TCJA) substantially altered the tax rates and standard deductions, did away with exemption deductions, and increased the child tax credits—all elements of how the withholding allowances and tables have been structured in the past. 

Thinking of Selling Your Home or Did You Sell Your Home in 2017?

Be Aware of Many Tax-Related Issues if You Sold Your Home Last Year

Read About Home Sales and the Home-Sale Gain Exclusion

If you sold your home last year, or if you are thinking about selling it, you should be aware of the many tax-related issues that could apply to that sale so that you will be prepared at tax time and not have to deal with unpleasant surprises.  This article covers home sales and the home-sale gain exclusion, particularly when that gain exclusion applies and what portion of it applies.  Certain special issues always affect home sales, such as the use of a portion of the home as an office or daycare center, previously use of the property as a rental, and acquisition in a tax-deferred exchange.  Other frequently encountered issues are related to the “2 years out of 5” rules for ownership and use, as these rules must be followed to qualify for gain exclusion.

2017 QuickBook Reports

5 QuickBooks Reports You Need to Run in January

Does your accounting to-do list look like a clean slate, or are critical 2017 tasks still nagging? 

Getting all of your accounting tasks done in December is always a challenge. Besides the vacation time you and your employees probably took for the holidays, there are those year-end, Let’s-wrap-it-up-by-December-31 projects.

How did you do last month? Were you ready to move forward when you got back to the office in January? Or did you run out of time and have to leave some accounting chores undone?

What Potential Tax Reform Means for Year-End Planning

On Friday, December 1, 2017 the Senate was voted on their version of the Tax Cut and Jobs Act. Rumblings out of Washington DC indicate that the GOP leadership has reached an agreement that the House will put the Senate version to a vote without reconciling the differences between the House and Senate versions.  As a result, the Senate version would prevail and it would become the new tax law if the President signs the legislation, which he has said he will do. But no one has a crystal ball and we will be following this closely.