Have you made substantial gifts of wealth to family members? Or are you the executor of the estate of a loved one who died recently? If so, you need to know whether you must file a gift or estate tax return. Filing a gift tax return Generally, a federal gift tax return (Form 709) is
Ellenbogen
Feb 21, 2019
What you need to know about filing gift and estate tax returns
- By Ellenbogen
- Estate, Taxes
- 0 Comments
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Feb 20, 2019
When are LLC members subject to self-employment tax?
- By Ellenbogen
- Business, Taxes
- 0 Comments
Limited liability company (LLC) members commonly claim that their distributive shares of LLC income (after deducting compensation for services in the form of guaranteed payments) aren’t subject to self-employment (SE) tax. But the IRS has been seeking back taxes and penalties from LLC members it claims have underreported SE income, with some success in court.
Feb 19, 2019
Ticket scams: When the price of admission is too high
- By Ellenbogen
- Fraud
- 0 Comments
Hoping to find inexpensive or difficult-to-obtain concert, sporting and other event tickets, many consumers turn to the online resale market. But while most resale transactions are legitimate, some buyers are tricked and end up with stolen or counterfeit tickets, or no tickets at all. To avoid purchasing invalid tickets, buy from the event’s official ticketing
Feb 14, 2019
3 big TCJA changes affecting 2018 individual tax returns and beyond
- By Ellenbogen
- Deductions, Taxes
- 0 Comments
When you file your 2018 income tax return, you’ll likely find that some big tax law changes affect you — besides the much-discussed tax rate cuts and reduced itemized deductions. For 2018 through 2025, the Tax Cuts and Jobs Act (TCJA) makes significant changes to personal exemptions, standard deductions and the child credit. The degree
Feb 13, 2019
Warning! 4 signs your nonprofit is in financial danger
- By Ellenbogen
- Non-Profit
- 0 Comments
Signs of financial distress in a not-for-profit can be subtle. But board members have a responsibility to recognize them and do everything in their power to avert potential disaster. Pay particular attention to: 1. Budget bellwethers. Confirm that proposed budgets are in line with strategies already developed and approved. Once your board has signed off
Feb 12, 2019
Many tax-related limits affecting businesses increase for 2019
- By Ellenbogen
- Business, Taxes
- 0 Comments
A variety of tax-related limits affecting businesses are annually indexed for inflation, and many have gone up for 2019. Here’s a look at some that may affect you and your business. Deductions Section 179 expensing: Limit: $1.02 million (up from $1 million) Phaseout: $2.55 million (up from $2.5 million) Income-based phase-ins for certain limits on
Feb 7, 2019
There’s still time to get substantiation for 2018 donations
- By Ellenbogen
- Charity, Deductions, Taxes
- 0 Comments
To claim an itemized deduction for a donation of more than $250, generally you need a contemporaneous written acknowledgment from the charity. “Contemporaneous” means the earlier of 1) the date you file your income tax return, or 2) the extended due date of your return. If you made a donation in 2018 but haven’t received
Feb 6, 2019
An ESOP can benefit a business owner’s retirement and estate plans
- By Ellenbogen
- Business, Estate
- 0 Comments
If your wealth is tied up in a closely held business, lack of liquidity can create estate planning challenges. Selling your business shares to an employee stock ownership plan (ESOP) converts them into liquid assets. If the ESOP owns more than 30% of the company’s outstanding common stock immediately after the sale, you may be
Feb 5, 2019
Is your nonprofit ready for a raffle?
- By Ellenbogen
- Non-Profit
- 0 Comments
Raffles are popular fundraisers for not-for-profits. But they’re subject to strict tax rules. State laws on nonprofit-sponsored raffles vary, but you must comply with federal income tax requirements. First, you may owe unrelated business income tax unless your fundraiser is “substantially” staffed by volunteers. Second, raffle winnings must be reported to the IRS when the
Jan 31, 2019
Are your employees flying the red flags of fraud?
- By Ellenbogen
- Fraud
- 0 Comments
Forensic accountants are best qualified to unearth the “hows and whys” of occupational fraud. But it’s up to employers to know when it’s time to call for professional help in the first place. The signs of fraud can be easy to miss, but they’re usually there. Something doesn’t belong Dishonest employees may use anything from