What roll should your house have in retirement planning?

Home is where the heart is. And it can also be where the assets are. As of 2011, home equity made up about three-quarters of the average American’s net worth, according to the U.S. Census Bureau. Despite this high figure, the home doesn’t always factor into retirement planning calculations.

Read More: http://www.journalofaccountancy.com/news/2017/mar/how-home-ownership-impacts-retirement-201715814.html

Questions: http://rehcpas.com/

Tax Rules for Uber, Lyft and Other Ride-Share Drivers

Instead of sitting at home watching TV reruns during their down time, some of your clients are making extra cash by offering their services in the shared economy. One of the most popular methods is to become a driver for a company like Uber or Lyft. Essentially, you operate your own vehicle like a taxi cab, picking up and dropping off fares, utilizing a schedule that’s convenient for your lifestyle.

What are the tax consequences? The answer is not quite as simple.

When you’re a driver for Uber or Lyft, you receive a 1099 from the company, indicating the compensation received during the year. This is the amount you must report to the IRS, and any appropriate states, as taxable income. So there’s no such thing as a “free ride.” The type of form depends on the volume of your activities, Typically, the company will provide a 1099-MISC for low-to-middle-volume drivers, but a 1099-K if you had more than 200 transactions and $20,000 in payments.

Read More: http://www.cpapracticeadvisor.com/news/12316225/tax-rules-for-uber-lyft-and-other-ride-share-drivers

Questions: http://rehcpas.com/

March Madness Tax Tips

It's in the air, and later this week, it will start infecting millions of Americans in their offices. The Centers for Disease Control doesn't even recognize it as an issue, or even study it.

Read More: http://www.cpapracticeadvisor.com/news/12315218/march-madness-tax-tips

Questions: http://rehcpas.com/

16 Nice-Try Tax Breaks Rejected by the IRS

Over the years, taxpayers have concocted a lot of zany arguments to justify their tax breaks. We’ve come up with what we think are the 16 most creative ones that the courts decided did not quite work.

Read More: http://www.kiplinger.com/slideshow/taxes/T054-S011-16-nice-try-tax-breaks-rejected-by-the-irs/index.html

Questions: http://rehcpas.com/

Keeping Two Sets Of Books Can Mean Prison For Tax Evasion

It can be awfully difficult to explain two sets of books to the IRS. Take Jeffrey Nowak, a Las Vegas, Nevada liquor store owner. He was just sentenced to 41 months in prison for conspiring to defraud the United States and tax evasion. Mr. Nowak, 67, and Ramzi Suliman, jointly owned and operated liquor stores in Las Vegas. At Super Liquor Store South Strip, Nowak and Suliman skimmed cash receipts and maintained two set of books in order to under-report income to the IRS.

Read More: https://www.forbes.com/sites/robertwood/2017/03/07/keeping-two-sets-of-books-can-mean-prison-for-tax-evasion/#c2a4f083565c

Questions: http://rehcpas.com

This Year’s IRS Audits Are Bad News for the Rich

The number of audits conducted by the Internal Revenue Service has dropped as it continues to reel from years of budget cuts. But even as its workforce shrinks, the agency must keep the money flowing into the U.S. Treasury. The solution in 2017? Focus on target-rich environments, and squeeze more dollars out of each audit.

Rad More: https://www.bloomberg.com/news/articles/2017-02-28/this-year-s-irs-audits-are-bad-news-for-the-rich

Questions: http://rehcpas.com/

Florida Man Runs Afoul Of IRS Basis Rules For S Corporations

You will rarely see a better illustration of Reilly's Fourth Law of Tax Planning, than the Tax Court's decision yesterday in the case of William and Amaryllis Tinsley.  The Fourth Law by the way is - Execution isn't everything but it's a lot. The Tinsleys were hoping to post a good sized negative number ($110,480) from their S Corporation (Command Computers of West Florida Inc) on their individual return.  The loss was disallowed because of lack of basis. The Tinselys thought they had solved the problem of basis.  Maybe they had in some sense, but not to the satisfaction of the Tax Court.

Read More: https://www.forbes.com/sites/peterjreilly/2017/03/01/florida-man-runs-afoul-of-irs-basis-rules-for-s-corporations/#3370bb6a795e

Questions: http://rehcpas.com/