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IRS Indicates Taxpayers do not Need to Report Virtual Currencies (i.e., Bitcoin, etc.) on FBAR
During a recent webinar, an IRS official stated that for purposes of the current (2013) filing season, taxpayers aren’t required to report virtual currencies on a Report of Foreign Bank and Financial Accounts (FBAR) with the U.S. Treasury. However, while this previously disputed matter appears to be settled at present, the official stated that this…
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Final IRC Section 83 Regulations Make it Harder to Defer Tax on Compensatory Stock Transfers
The IRS has issued final regulations under Internal Revenue Code Section 83 that will make it more difficult for taxpayers who receive stock in connection with the performance of services to defer tax on the value of the stock received. The IRS has accomplished this by clarifying and tightening certain rules relating to whether a…
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New 1031 Exchange Filing Requirements for California
The Franchise Tax Board (FTB) has created a new annual filing requirement taxpayers who exchange property located in California for like-kind replacement properties located outside California, which takes effect for tax years beginning on or after January 1, 2014. The new information return, referred to as a California 1031 Information Return, remains in development; but…
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Q&A on 0.9% Additional Medicare Tax
The IRS has released final regulations on the new 0.9% additional Medicare tax that is imposed on high wage earners starting on Jan 1, 2013. The tax applies to wages, compensation, and self-employment income above a threshold amount. A newly compiled Q&A page on the additional Medicare tax is available on the IRS website, and…
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2013 Tax Data Quick Reference Guide
The California Society of CPAs has published a very useful quick reference resource that includes 2013 federal and California tax data, rate schedules and an abundance of other information in an easy to use format. The information in the online version will be updated for any tax law changes. The PDF download is available at…
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2013 Tax Planning Guide
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IRS Released 2014 Limits to Contributions and Deductions
The IRS has released 2014 cost-of-living adjustments for many tax-related items. Here are some highlights: – The 401(k) and 403(b) contribution limit remains unchanged at $17,500, as does the catch-up contribution limit for employees age 50 or older ($5,500). -The IRA contribution limit remains unchanged at $5,500, as does the catch-up contribution limit for individuals age 50…
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Tax Advantaged Accounts for Health Care Expenses
With the Affordable Care Act coming fully on-line in 2014, now would be a good time to review the four types of tax-advantaged accounts that can be used to pay for unreimbursed medical expenses. The Congressional Research Service has published a report that summarizes the key components of Health Care Flexible Spending Accounts (FSAs), Health…
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Changes to Enterprise Zone Tax Incentives
The Enterprise Zone tax incentives as we have come to know and love them are all expiring on December 31, 2013. But all hope is not lost…the old Enterprise Zone Hiring Credit is being replaced by the New Employment Credit and the old Enterprise Zone Sales Tax Credit is being replaced by the Manufacturing Exemption.…
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Review of Key Provisions for 2012 Tax Returns