24. June 2010 by admin.

EFFECTIVE IMMEDIATELY!  The Division of Corporations no longer has authority to waive the $400 late fee for annual reports filed after May 1st. The provision for waiver in s. 607.193(2)(b),F.S. was repealed during the 2010 Legislative Session. All business entities except non-profit corporations must pay the late fee if the annual report is filed after May 1st

Posted in International Taxation, Sub S Corporations, LLC's, General | 1 Comment »

21. June 2010 by admin.

How do you prove a deduction?

First, a cancelled check, credit card charge or cash receipt.  BUT, that only proves you paid for something.

Second, an invoice showing what was paid. 

For example, you have a cancelled check to an insurance company.  It only proves you paid for something.  You might have paid your Grandmothers insurance policy instead of business liability.  So it takes the invoice AND proof of payment.

Every deduction it requires PROOF of PAYMENT and PROOF of the expense, meaning an invoice.

Posted in Payroll Tax, International Taxation, Sub S Corporations, LLC's, Income Tax | 1 Comment »

1. June 2010 by admin.

Recourse vs. Nonrecourse

When a debt is canceled by any means (deed in lieu of, foreclosure, short sale, cancellation of debt), the tax impact depends on the type of debt.

Debt for which the borrower is personally liable is “recourse debt,” all other debt is “nonrecourse debt.”

RECOURSE debt holds the borrower personally liable for any unsatisfied amount owed when the property is surrended (by any means).

If a lender forecloses on property subject to recourse debt, and cancels the portion in excess of the fair market value (FMV), the canceled part is “ordinary income from cancellation of indebtedness”.  That figure must be included in gross income unless it qualifies for an exception of exclusion (personal residence, Mortgage Debt Relief Act, bankruptcy or insolvency).

Additionally taxpayer may realize a gain or loss on the disposition of the property by the difference between the tax basis and the FMV at the time of foreclosure.

NONRECOURSE debt is satisfied by the surrender of the property regardless of FMV.  Borrower is not personally liable for the debt.

If nonrecourse debt is abandoned, foreclosed, short sale or repossessed, it is treated as a sale.  The usual method to determine gain or loss is used.  The balance of the nonrecourse debt at the time of the disposition is treated as the amount realized (in other words you actually sold it for the total debt of the property, not just what a short sale closing document may indicate).

Posted in International Taxation, Sub S Corporations, LLC's, Income Tax, General | 1 Comment »

7. February 2010 by admin.

2009 Standard Mileage rates for the use of a car (includes Pickups, Vans and Panel Trucks):

• 55 cents per mile for business miles driven (decreases to 50 cents per mile in 2010)
• 24.0 cents per mile driven for medical or moving purposes (decreases to 16.5 in 2010)
• 14 cents per mile driven in service of charitable organizations (same in 2010)

Runzheimer International conducts an annual study of fixed and variable expenses to operate a vehicle.  Please note the Business Mileage Deduction may not be used if a vehicle has been depreciated using MACRS or depreciated using  §179.

Posted in International Taxation, Sub S Corporations, LLC's, Income Tax | No Comments »

5. February 2010 by admin.

Cost Segregation is a VERY BENEFICIAL tax angle used by real estate owners to ACCELERATE DEPRECIATION deductions.

In the past it was primarily used by large accounting firms and larger clients.  The ability for smaller building owners to utilize these techniques is now becoming popular.

It takes an engineering study and an accounting firm that understands the issues.

Generally here is how it works…..

An engineering study is completed to identify components in a buiding that can be depreciated over 5, 7 and 15 years instead of 39 years for commercial property and 27.5 for residential property.

We then prepare what is called an ACCOUNTING CHANGE and the prior year(s) of lower depreciation are now adjusted in one year!

This is alot of paperwork but it is often worth it.  You are welcome to contact us if you have questions www.USATaxHelp.com

Posted in International Taxation, Sub S Corporations, LLC's, Income Tax | 1 Comment »

27. November 2009 by admin.

Client Disclosure Authorization

Posted in International Taxation, Payroll Tax, Sub S Corporations, LLC's, Income Tax, General | 1 Comment »