Tax Guides

HIGHLIGHTS

• Sole proprietor.
• Partnership.
• S corporation.
• C corporation.

HIGHLIGHTS

• Buy-sell agreement explained.
• Cross purchase agreement.
• Stock redemption agreement.
• Other business insurance needs.

This handout defines what assets are considered capital assets. It also discusses holding periods of assets, basis, and capital gain tax rates.

HIGHLIGHTS:

• Capital and noncapital assets.
• Holding periods.
• Mutual funds, including cost basis and average basis.
• Capital gain tax rates.
• Sale of collectibles and small business stock.
• Capital loss limitation and carryover.

CLIENTS WHO MAY BENEFIT:

• Taxpayers who own assets and are considering selling those assets.
• Taxpayers who have inherited property.

This handout defines the tax status of taxpayers who are separated or divorcing. It also provides information on property transfers, alimony, and child support.

HIGHLIGHTS:

• Filing status.
• Joint responsibility for taxes.
• Property settlements and transfers.
• Deducting the cost of divorce.
• Alimony payments.
• Child support payments.

CLIENTS WHO MAY BENEFIT:

• Taxpayers who are separated or divorced.
• Taxpayers who pay or receive alimony and/or child support.

This handout discusses education tax benefits. It also provides a comparison of the education credits and discusses the education savings plans.

HIGHLIGHTS:

• Deduction of education expenses.
• Education tax credits.
• Penalty-free IRA distribution for education.
• Education savings plans.
• Exclusions from gross income.

CLIENTS WHO MAY BENEFIT:

• Taxpayers with children in college.
• Taxpayers saving for college expenses.

HIGHLIGHTS

• Penalties for incorrect classification.
• Factors used to determine worker status.
• Incorrect treatment of employees as independent contractor.

This handout discusses the requirement to pay taxes through withholding and/or estimated payments. It includes estimated tax payment due dates.

HIGHLIGHTS:

• Who must pay estimated taxes.
• Who does not have to pay estimated taxes.
• When to pay estimated taxes.
• Underpayment of estimated taxes.
• Additional Medicare and net investment income tax.

CLIENTS WHO MAY BENEFIT:

• Self-employed individuals who must pay quarterly estimated tax payments.•
• Individuals who are not having enough income tax withheld by the employer.•
• Taxpayers who might be subject to the additional Medicare tax and/or the net investment income tax.

This handout provides guidance for taxpayers who are unable to file their income tax return by the due date. It also provides information for individuals who are unable to pay the income tax due by the return due date.

HIGHLIGHTS:

• Individual extensions.
• When to file.
• Late filing penalty.
• Late payment penalty.
• Extensions and living outside the United States.
• Combat zone extensions.

CLIENTS WHO MAY BENEFIT:

• Taxpayers who need to file an extension.
• Taxpayers who are unable to pay income tax due by the due date.
• Taxpayers who live outside the United States.

HIGHLIGHTS

• Gift tax rules and exclusion amounts.
• Gifts subject to gift tax.
• Tax implication of loan forgiveness.
• Transfers for tuition or medical expenses.

This handout provides a listing of deduction limitations for taxpayers who have higher taxable income.

HIGHLIGHTS:

• Capital gain tax rates.
• Phaseouts of itemized deductions and personal exemptions.
• Reduced IRA deductions and reduced Roth IRA contributions.
• Phaseout of Retirement Savings Contribution Credit and Child Tax Credit.
• Medicare provisions of the Affordable Care Act.
• Education benefits phaseouts.

CLIENTS WHO MAY BENEFIT:

• Taxpayers with higher income who have children.
• Taxpayers who experience high income for a particular year.

This handout identifies homeowner expenses that are deductible as itemized deductions. It also includes a chart for home mortgage debt limits.

HIGHLIGHTS:

• Real estate taxes including assessments.
• Mortgage interest including limits on deductions.
• Mortgage insurance.
• Home improvements for medical purposes.

CLIENTS WHO MAY BENEFIT:

• Taxpayers who are purchasing a home.
• Taxpayers incurring additional home mortgage debt.

This handout discusses which taxes paid are deductible as well as any limitations on the deductibility of those taxes.

HIGHLIGHTS:

• State and local income taxes.
• State and local sales taxes.
• Real estate taxes.
• Real estate taxes paid upon the sale or purchase of a home.
• Personal property taxes.

CLIENTS WHO MAY BENEFIT:

• Taxpayers who own real estate.
• Taxpayers who pay income tax or sales tax during the year.

HIGHLIGHTS

• Social Security full retirement age.
• Social Security early retirement reduced benefits.
• Pension income.
• IRA distributions including required minimum distribution rules.

This handout discusses the requirements to exclude gain on the sale of a principal residence. It also discusses the reduced maximum exclusion that is available for certain taxpayers.

HIGHLIGHTS:

• Principal residence defined.
• Exclusion of gain.
• Ownership and use rules.
• Vacant lot adjacent to residence.
• Reduced maximum exclusion.

CLIENTS WHO MAY BENEFIT:

• Taxpayers who are selling a home.

This handout compares the use of the standard deduction vs. the use of itemized deductions.

HIGHLIGHTS:

• Standard deduction amounts.
• Itemized deduction limitations.
• Nondeductible expenses.
• Medical expense limitations.
• State and local taxes limitation.

CLIENTS WHO MAY BENEFIT:

• Taxpayers whose itemized deductions are near the amount of the standard deduction.
• Taxpayers with substantial state and local taxes.
• Taxpayers with substantial medical expenses.