4Thought Blog

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Landlord Taxes 101: How to Use Tax Deductions and What to Know When You Sell

Posted by Concannon Miller on Tue, Jun 13, 2017

Have you ever thought about becoming a landlord? This option may be tempting if your local real estate market is surging and rental rates are strong, especially if you're already planning to relocate or downsize to a smaller home.

Ideally, you'll be able to shelter most or all of the rental income with tax deductions and eventually sell the property for a higher price than you originally paid. In the meantime, however, it's important to understand the confusing tax rules that apply when a personal residence is converted into a rental.

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Topics: Individual tax planning

Buy a Boat, Plus 9 Other Ways to Cut Taxes This Summer

Posted by Concannon Miller on Tue, May 30, 2017

Memorial Day marked the start of Summer 2017, but the forecast for Washington remains unclear as officials continue to discuss various tax-related issues.

No matter what happens in Washington, don't get stuck in a holding pattern yourself. Give some attention to business and personal tax planning this summer. Here are 10 ideas that combine tax planning with summertime fun.

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Topics: Business tax planning, Individual tax planning

Don’t Get Double Taxed: How to Establish Residency for State Tax Purposes

Posted by Concannon Miller on Tue, May 9, 2017

Have you been contemplating moving to another state with lower taxes? Your move could lower your state tax bill, but you want to make sure to establish that the new state is your place of legal residency (also known as your “domicile”) for state tax purposes. Otherwise, the old state could come after you for taxes after you've moved.

In the worst-case scenario, your new state could expect to get paid, too. Here's what you need to do to establish residency in the new state — and why moving your pet could be a deciding factor.

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Topics: Individual tax planning

Pennsylvania’s Tax Amnesty Program: How to Get a Discount on Delinquent Taxes

Posted by Harry Pietrouchie on Mon, May 1, 2017

If you owe personal or business taxes to the state of Pennsylvania, now’s a good time to consider paying up.

The State of Pennsylvania recently enacted a Tax Amnesty Program, its first since 2010. Through June 19, 2017, the state has authorized a tax amnesty program that will waive all penalties and half of the interest owed on eligible tax delinquencies.

Any taxes administered by the Pennsylvania Department of Revenue are eligible for the amnesty program, including both business and personal taxes.

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Topics: Business tax planning, Individual tax planning

Home Mortgage Interest Deductions: There’s a Big Change for 2016 Tax Returns

Posted by Concannon Miller on Thu, Apr 6, 2017

If you own a home with a mortgage, you should receive an IRS form from your lender each year with information that is used to claim an itemized deduction for qualified residence interest. For 2016, that form should include additional information that could trigger unwanted attention from the IRS. Here's what you should know about the IRS rules that apply to home mortgage interest deductions and the changes in the IRS mortgage interest reporting form.

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Topics: Individual tax planning

Don’t Miss the New FBAR Filing Deadline – It’s Fast Approaching

Posted by Concannon Miller on Tue, Mar 28, 2017

Do you have an interest in — or authority over — a foreign financial account? If so, the IRS wants you to provide information about the account by filing a form called the "Report of Foreign Bank and Financial Accounts" (FBAR).

The annual deadline for filing FBARs has been changed. It now coincides with the tax filing deadlines for individuals, under the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015. So, for accounts held in 2016, you must generally file FBARs by April 18, 2017. (Formerly, the deadline was June 30, excluding weekends and holidays.)

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Topics: Business tax planning, Individual tax planning

Taxes Won’t be Done by April? The Easy Way to get an Extension

Posted by IRS on Thu, Mar 23, 2017

Don’t think you can get your taxes done by April 18? Even the IRS says not to worry.

The Internal Revenue Service reminded taxpayers this week that if they are unable to file their tax returns by this year’s April 18 deadline there is an easy, online option to get more time to complete their return.

Taxpayers who need more time to complete their return can request an automatic six-month extension. An extension allows for extra time to gather, prepare and file paperwork with the IRS, however, it does not extend the time to pay any tax due.

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Topics: Individual tax planning

10 Tax Changes That Could Affect Your 2016 Return

Posted by Concannon Miller on Thu, Feb 2, 2017

Several significant tax developments happened last year that may affect federal income tax returns that individual and business taxpayers file in 2017. Here's a quick look at 10 key changes that you should be aware of during this tax season.

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Topics: Business tax planning, Individual tax planning

2017 Tax Season to Start; IRS Warns of Some Delays

Posted by IRS on Thu, Jan 19, 2017

With the 2017 tax season opening Monday, Jan. 23, the IRS is warning taxpayers claiming certain tax credits to expect a longer wait for refunds.

A new law requires the IRS to hold refunds claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) until Feb. 15.

“For this tax season, it’s more important than ever for taxpayers to plan ahead,” IRS Commissioner John Koskinen said in a press release.

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Topics: Individual tax planning

2017 Taxes: What Changes May Lie Ahead

Posted by Concannon Miller on Tue, Jan 3, 2017

With Donald Trump as the incoming president and Republicans holding a majority in the U.S. House and Senate, GOP tax reform appears likely this year. While campaigning, Mr. Trump promised big tax changes. Here's a digest of his proposals, according to his website.

Individual Tax Rates and Capital Gains Taxes

For individuals, President-elect Trump proposes fewer tax brackets and lower top rates: 12%, 25% and 33% — versus the current rates of 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. The tax rates on long-term capital gains would be kept at the current 0%, 15% and 20%.

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Topics: Individual tax planning

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