by Leif Jensen | Jan 22, 2019 | General |
In 2014 the IRS issued Notice 2014-21 to provide guidance and some basic tax principles concerning virtual currency (i.e. Bitcoin, Litecoin, Monero, Dogecoin,NEM, etc.). The notice establishes that virtual currency is to be treated as property. So as property, the tax...
by Leif Jensen | Jan 21, 2019 | General |
I was on a webinar recently and one of the slides showed that a mere 1% of “things” that could be connected to the internet currently are. So apparently “we” are not moving as fast as originally anticipated in embracing the “IOT”. But the presentation did state that...
by Leif Jensen | Jan 16, 2019 | General |
A few years ago I met and individual who was a guest at a networking event. He was a definite self-promoter always looking for the next way to make money. At the meeting we were seated together and at some point he turned to me and asked why I was there? Before I...
by Leif Jensen | Jan 15, 2019 | General |
There was a large subgroup of people who were able to itemize and deduct Miscellaneous Itemized deduction on their Schedule A after the expenses surpassed 2% of Adjusted Gross Income (AGI). All of these expenses were eliminated as deductible under the new tax law. A...
by Leif Jensen | Jan 14, 2019 | General |
Home equity line of credit (HELOC) is indebtedness defined as indebtedness other than acquisition indebtedness secured by a qualified residence. Meaning is does not include the original primary mortgage on your principal residence. According to the new tax law for the...
by Leif Jensen | Jan 9, 2019 | General |
Under the new tax law (TCJA) the reporting of alimony paid as a deduction from income on the 1040 has been eliminated. In conjunction payments for alimony or separate payments received are no longer required for inclusion of income on the recipient’s income tax...
by Leif Jensen | Jan 8, 2019 | General |
Head of Household (HOH) is an option for a filing status for those who have a dependent child(ren). In prior years this status was not under fire, as the Earned Income credit, Child Tax credit or the American opportunity credit. This has changed in tax year 2018. Now...
by Leif Jensen | Jan 7, 2019 | General |
The basics framework for financial compliance is a company’s recordkeeping or bookkeeping. Over my career I have been fascinated and surprised by how this is accomplished or not by some companies. We work with a multitude of different clients in a number of...
by Leif Jensen | Dec 19, 2018 | General |
Under the recent tax reform law the ability to deduct hobby expenses on Schedule A have been eliminated. But the necessity of reporting Hobby Income is still required. A client was sharing that someone they knew was selling product on Etsy and Craigslist(?) and was...
by Leif Jensen | Dec 18, 2018 | General |
While the IRS has streamlined the approval process for a Form 1023-EZ the forms need to be filled out with the intent of compliance. Some small groups that filed Form 1023-EZ are getting additional IRS scrutiny. To file Form 1023-EX the charities have to meet the...
by Leif Jensen | Dec 17, 2018 | General |
Surprise the IRS has broad discretion to allocate partial payments of back taxes. It can do so to its own advantage versus your, unless you state how to apply the payments. In a recent tax court case a couple who owed multiple years of income taxes hand-delivered a...
by Leif Jensen | Dec 12, 2018 | General |
I have a client who is older and not happy with their current employer. They initially thought that this was where they would spend their final working years. But alas it would appear that this will not be the case. As part of a protected class, the employer is not...
by Leif Jensen | Dec 11, 2018 | General |
Succession planning for a business seems to be a major issue at the moment. I am working with five that are either in the process or have it as an issue to address in the foreseeable future. All five businesses have at least one adult children working in the...
by Leif Jensen | Dec 10, 2018 | Uncategorized |
After a recent tax court ruling a former country music artist is unhappy over the hobby loss rules after an appeals court disallowed her Schedule C losses from a music venue she owns. Among the factors that helped the court conclude she did not intend to turn a...
by Leif Jensen | Dec 5, 2018 | General |
Annual reports those little pieces of joy that are sent from the Secretary of State’s office every year. This past year we seemed to have dealt with client’s whose “Registered Agent” either themselves or another party, neglected to file the reports and have fallen...
by Leif Jensen | Dec 4, 2018 | General |
I was reading the WSJ online and saw another article that looked interesting so I went down the rabbit hole. I eventually stumbled into someone’s blog. This blog had some interesting points on brand marketing. Their idea was to leverage today’s marketing...
by Leif Jensen | Dec 3, 2018 | General |
A court win for an S firm owner whose tax reporting did not match the K-1 he got from the company. S corporation shareholders must report income and loss items on their 1040 consistent with what’s shown on the K-1 or attach a statement to the return identifying any...
by Leif Jensen | Nov 28, 2018 | General |
Business owners you retain responsibility to ensure that your employment taxes are actually paid. Unfortunately you cannot just rely on the word of an employee or accountant that they have been paid and you are done. Take this case in which the IRS slapped penalties...
by Leif Jensen | Nov 27, 2018 | General |
Something the Lottery does not mention much, if you win the lottery; expect Uncle to withhold a sizable amount of tax from your jackpot just too wet its beak. The current federal income tax withholding rate is 24%. Then there is the state. Illinois will want their...
by Leif Jensen | Nov 26, 2018 | General |
I was having a conversation with another attorney who was incorporating a client that was taking the stance that an LLC is better than an S-Corporation. The reduced organization fee and annual report fee do make it more comparable in price. Also once organized an LLC...
