Archive

Question by JE: What is the difference between a Roth IRA and a Roth IRA term cd? What is the difference between a Roth IRA and a Roth IRA term cd? Does the Roth Cd act like a regular cd but with tax free interest? When the Roth CD term is up, do I have [...]

(August 20, 2010. Franchise Tax Board News Release) Sacramento – The state is contacting more than 40,000 California businesses that have not filed their 2008 state income tax returns with the Franchise Tax Board (FTB). The notices inform the businesses that they have 30 days to file a return or show why there is no [...]

There are times when you have to withdraw money from IRA and then there are times when you are compelled by the tax law to withdraw money from IRA. No matter what the case, you should know about certain penalties, exemptions and requirements. The other day I was talking to a client about IRA withdrawals [...]

(Press Release August 6, 2010) Last Chance to Apply for State’s First-Time Buyer Tax Credit Sacramento – The Franchise Tax Board (FTB) announced today that it will stop accepting applications for the First-Time Buyer Credit at midnight Sunday, August 15, 2010. As of August 4, FTB has received 31,460 applications. Because some of the applications [...]

As a tax accountant, I meet with clients who try to tally up income and expenses from their rentals couple days before their appointment to finalize taxes. That’s understandable but it is not recommended since there is a possibility that you might not have all the expense records. According to the IRS, the “tax gap” [...]

Q: What is deductible as “actual car expense” when using a personal car for business purposes? A: Automobile expenses pertaining to a trade or business are deductible under the tax code as ordinary and necessary business expenses. Actual car expenses include: – Gasoline – Oil – Tires – Repairs – Insurance – Depreciation – Licenses [...]

Recently I finished a tax audit assignment where I had to compile data that was to be used during an audit. My job was to create a paper trail and substantiate the taxpayers claims with receipts, invoices and canceled checks. IRS asked that we document all deposits and show what was taxable and non-taxable. My [...]

IRS has been spending a lot of time advertising the new Small Business Health Insurance Credit. The way to qualify for this credit is to provide your employees with health insurance. As simple as it may sound, it comes with quite a few restrictions. Here is the criteria in its simplest form: – Employ the [...]

Internal Revenue Code provides some special tax breaks for active members of the U.S. Armed Forces, including those serving in combat zones. Whether its the battlefield or at home, military families make major sacrifices to keep the nation safe. It is hard for an average person to keep up with all the changes in tax [...]

Like most people, you are probably thinking of converting your traditional IRA, SEP IRA, SIMPLE IRA, or other qualifying retirement plan to a Roth IRA this year. Depending on your tax bracket and financial situation, acting in 2010 could be a good idea. One reason: For conversions made this year, a change in the law [...]