Harless Tax Blog

Harless Tax Blog

Is Your Business A Hobby in the Eyes of the IRS?

Thursday, July 31, 2014

Investing in a “side business” when the main source of your net worth is derived from other businesses may result in a target on your back from the IRS. The Service continues to audit specific activities at a very high rate that have elements of pleasure, recreation or a hobby. Activities such as aviation, boat chartering, equine activities and vacation rentals are typically scrutinized under IRC Section 183, otherwise known as the hobby loss rules.  See More

Time Management Tips and Tricks

Monday, July 28, 2014

By Donna Holm, CPA, MST, Tax Director, Harless & Associates

Do you ever wonder where the day has gone? Interruptions, phone calls, emails and before you know it, the day is over and you didn’t finish what you set out to do that day. Effective time management skills can be applied to your business and personal life to enable you to have better control over your life. It’s important to manage your time and to NOT let it manage you. As a result, stress levels are reduced and a positive attitude with a sense of accomplishment can be achieved. See More

Tips on Travel While Giving to Charity

Monday, July 21, 2014

Do you plan to donate your services to charity this summer? Will you travel as part of the service? If so, some travel expenses may help lower your taxes when you file your tax return next year. Here are five tax tips you should know if you travel while giving your services to charity. See More

LTC Options

Wednesday, July 16, 2014

[source: FA-Mag.com]
For those who cannot qualify for insurance, an annuity with an attached LTC or “confinement care” rider might make the most sense. The latter is similar to the chronic-care option. A fixed indexed annuity with an income rider that can also be used for confinement care will double the contractual income guarantee when the confinement care is triggered. That happens whenever the insured person can no longer do two of six activities done in daily living—bathing, dressing, toileting, continence, feeding and transferring out of or into bed. See More

Treasury: Retirement Accounts Can Include Longevity Annuities To Limit Drawdowns

Friday, July 11, 2014

Retirees with 401(k) plans and individual retirement accounts will have more flexibility to purchase annuities that don’t start paying out until age 80 or 85, under final rules from the U.S. Treasury Department. {Source: Financial AdvisorSee More

The Real Internal Revenue Scandal

Monday, July 07, 2014

There is a scandal going on at the Internal Revenue Service, but it has nothing to do with Lois Lerner or her missing emails. House Republicans have not given up on their noisy crusade to tie Ms. Lerner to what they imagine to be widespread political corruption within the Obama administration, but all they have proved is that the I.R.S. is no better at backing up its computer files than most other government agencies.  [Source:NYTimes.com See More

In Bankruptcy, Inherited IRAs Are Up For Grabs

Friday, June 27, 2014

Are inherited IRAs protected from bankruptcy creditors? Earlier this month, the U.S. Supreme Court said no. (Clark v. Rameker, 6/12/14.) [Source: Investors Business Daily]

So IRA owners may want to reconsider their beneficiary designations. Despite the added cost and complexity, leaving your IRA to a trust can be a safe move.

To grasp the issue, consider a hypothetical Art Young, who has a sizable IRA. If Young files for bankruptcy, that account likely will be beyond creditors' reach.  See More

Why A Partnership Loss May Not Be Deductible

Thursday, June 12, 2014

When an individual receives a Schedule K-1 from a partnership reflecting a loss, there are several things to consider before deciding if the loss can be deducted. In order to determine deductibility, a partner's basis and at risk limitations need to be evaluated. See original Article here from Accounting Today>  See More

Time Management Tips

Wednesday, May 28, 2014

by Donna Holm
How to have control over your life – manage your time, don’t let it manage you!  Be healthier and happier (less stress).  See More

Discrepancies Seen in Nearly Half of Alimony Deductions Reported to IRS

Thursday, May 15, 2014

Nearly half the tax returns on which individuals claimed tax deductions for alimony payments did not match up with their former spouse’s tax returns, showing a total “alimony gap” of over $2.3 billion in 2010, according to a new government report.  by J. Russell George  See Original Article here from Accounting Today >

The report, from the Treasury Inspector General for Tax Administration, found 266,190 tax returns for 2010 in which individuals claimed alimony deductions for which income was not reported on a corresponding recipient’s tax return, or the amount of alimony income that was reported did not agree with the amount of the deduction taken. The 266,190 returns represented approximately 47 percent of all tax returns on which alimony deductions were claimed. In tax year 2010, 567,887 taxpayers claimed alimony deductions totaling more than $10 billion. See More