Antiques Used In Your Business – By John R. Bullis

Kim Pilant John's Articles

Suppose as a business owner, you decided you need a better desk. You know the entire cost of the desk can be a business expense with the cost all claimed in the year of purchase and when it was placed in service. Section 179 election to expense the full cost allows that immediate, full deduction, even if you pay for …

Pay Itemized Deductions in 2017 – By John R. Bullis

Kim Pilant John's Articles

Since we don’t know what the new tax law for 2018 and later will be, it is difficult to decide what to do before 12-31-17. The proposal indicates the Standard Deduction will be increased and the use of Itemized Deductions on Schedule A of form 1040 will be reduced. Maybe the best answer for most folks is to pay itemized …

Unauthorized Disclosure of Tax Return – By John R. Bullis

Kim Pilant John's Articles

Joseph and Anna May got divorced in 2012. The attorney for Anna in the divorce proceedings was Melanie Moffat. In 2015 Joseph May sued attorney Moffat claiming Moffat published part of his 2014 tax return when it was identified as a document in the divorce proceedings. Internal Revenue Code Section 7431 allows individuals to sue for civil damages if the …

New Limits for 2018 Retirement Savings – By John R. Bullis

Kim Pilant John's Articles

It is good Congress has linked many retirement plans with inflation. Here are some of the main 2018 dollar limits. 401(K) maximum contribution increases in 2018 to $18,500. That is $500 more than it was for 2017. And if you were born before 1969 (will be age 50 by 12-31-18) the “Catch-up” contribution is an additional $6,000. If there is …

Hire and Pay Your Kids – By John R. Bullis

Kim Pilant John's Articles

A business owner that reports business income and expenses on Schedule C of form 1040 has a special opportunity to reduce their income and self-employment taxes. Suppose the owner has some children that can work in the business. If you keep the records of when they worked, how many hours and how business related, then you have a possible expense …

Section 1790 Depreciation Deduction – By John R. Bullis

Kim Pilant John's Articles

There is a special deduction for businesses that buy personal property for use in the business. Section 179 deduction is for the cost of equipment (new or used) and Qualified Real Property that is purchased and placed in service before the end of the year. The deduction can be as much as $500,000. It is OK if you don’t pay …

Consider Filing an Amended Return – By John R. Bullis

Kim Pilant John's Articles

If you filed your U.S. Individual Income Tax Return for 2016 and now you realize it is not correct, consider filing an Amended Return on form 1040X. With all the special rules and the difficulties in gathering all the tax information, it is not unusual for a return to not be quite correct. Perhaps you received a ‘corrected’ form of …

Consider Taking Some Capital Losses – By John R. Bullis

Kim Pilant John's Articles

If you make 100 decisions, it is not reasonable to expect all of your decisions to be good ones. If you make investments, it is possible some of them will turn out to not be winners. If you have a stock that is worth less than you paid for it, you could consider selling it before the end of the …