Home Office Deduction by Denver Tax Attorney

Many individuals and business owners may work from home and will ask their tax attorney or CPA about the home office Denver Tax Lawyer Denver Tax Attorneydeduction.  It is important to note that for the 2013 1040, the IRS has attempted to simplify taking the home office deduction.  The article below has been drafted by a tax attorney at The McGuire Law Firm regarding the home office deduction.

To claim the home office deduction generally a taxpayer must use part of their home exclusively and regularly for business and part of the home used for business must be their principal residence or a place where the taxpayer meets clients or customers in the normal course of business or a separate structure that is not attached to their house.  For example, a taxpayer may have a garage or barn not attached to their house of which they may wish to claim the home office deduction.

The actual expense method can be used by a taxpayer.  If the house is rented the taxpayer may claim a portion of the rent, or if the home is owned the taxpayer may claim a portion of the mortgage interest and taxes & utilities.  Generally, the amount a taxpayer can deduct will depend upon the percentage or portion of the home that is used by the taxpayer in the operation of the business.

In 2013 taxpayers may be able to use the simplified option to claim the home office deduction instead of claiming the actual expense.  Under this simplified option a taxpayer multiplies the allowable square footage of the office by a rate of $5.  The maximum footage allowed is 300 square fee.  Thus, if using this method the maximum deduction a taxpayer could take on their 1040 individual income tax return would be $1,500.

The home office deduction can be limited if your gross income from the business use of your home is less than your business expenses.  A self employed taxpayer will use Form 8829 (Expenses for Business Use of Your Home).  The deduction can be claimed on your Schedule C which would be attached to your 1040 Individual Income Tax Return.  An employee who attempts to take the home office deduction must meet addition criteria and rules to take the deduction.  As an example, as an employee, to take the deduction, the business use must also be for the employer’s convenience.

You can speak with a Denver tax attorney regarding your tax questions and issues by contacting The McGuire Law Firm.  All potential clients receive a free consultation with a tax attorney!

Article on Deducting Charitable Contributions by Denver Tax Attorney

Can I deduct contributions to charities?  What charitable contributions are Denver Tax Attorney Denver Tax Lawyer IRS Tax Attorneydeductible?  These are common questions an individual taxpayer may ask their tax accountant or tax attorney.  The article below has been drafted by a Denver tax attorney at The McGuire Law Firm to provide some information regarding charitable contributions.

 

Gifting to charities can be a great way to obtain a tax deduction on your 1040 individual income tax return.  The gift or donation must be to a qualified charity if you want to deduct the gift.  Gifts given to individuals, politicians and certain organizations cannot be deducted on your tax return.

To deduct the gift, you must file a 1040 individual income tax return and be able to itemize your deductions on a Schedule A.  If you cannot itemize your deductions or would not want to because the standard deduction js greater than your itemized deductions, the gift would not be deducted on your tax return.  The deduction can also be limited if you receive any benefit for your contributions.  You can only deduct the amount of the gift you gave that is in excess of any benefit you may have received for making the gift.

When gifting, if you gift property, the amount you can deduct is generally the fair market value of the property at the time of the gift.  Fair market value can be defined as the amount a willing buyer would pay and a will seller would receive in an arm’s length transaction for the property, on an open market.

If you are deducting more than $500 for non cash gifts, you need to file Form 8283 with your 1040 individual income tax return.  You also must keep records to verify and prove the contributions you have made during the taxable year in which are deducting the gifts or contributions on your 1040 individual income tax return.

If claiming a deduction for cash or property of $250 or more, you will need a written statement from the organization of which you made the donation.  The statement must show the amount you donated and a description of the property.  The statement must also provide information as to any goods, services or benefits you received in return for donating the property.

You can speak with a Denver tax attorney at The McGuire Law Firm regarding any tax questions or issues that you have.  A tax attorney can assist you with many tax matters from personal tax planning to business issues and tax planning.

Contact the McGuire Law Firm to schedule your free consultation with a tax attorney.  Offices in Denver, Colorado and Golden, Colorado.

 720-833-7705 or John@jmtaxlaw.com

Offer in Compromise Video by Denver Tax Lawyer

A Denver tax lawyer at The McGuire Law Firm can assist you in preparing and submitting an offer in compromise to the IRS.  An offer in compromise is a tax settlement with the Internal Revenue Service whereby a taxpayer submits a proposal to pay less than the full amount of tax owed.  The video below has been prepared by a tax lawyer to provide general information regarding an offer in compromise.

Schedule your free consultation with a tax lawyer by contacting The McGuire Law Firm!  A Denver tax lawyer at The McGuire Law Firm can discuss your options regarding an offer in compromise as well as other tax matters.

Denver Business Lawyer

Contact The McGuire Law Firm to speak with a Denver business lawyer regarding your business or business questions.  We assist clients with the formation and structure of their business, contract and document drafting as the business operates, tax planning and analysis of specific transactions and the eventual sale, transfer or disposition of the business interests or assets.

You can schedule a free consultation with a business attorney by contacting The McGuire Law Firm!

IRS Offer in Compromise Calculation Video by Denver Tax Attorney

A Denver tax attorney at The McGuire Law Firm can assist you with tax matters before the IRS such as tax debts and audits as well as other tax issues.  John McGuire is an experienced tax attorney and has settled many tax debts for his clients through the IRS Offer in Compromise Program.  Please feel free to contact our office at anytime to speak with a tax attorney.

 

You can schedule a free consultation with a Denver tax attorney at The McGuire Law Firm at anytime!  Offices in Denver and Golden Colorado.

Article on Form 433B by Denver Tax Attorney

What is Form 433B?  How is Form 433B used by the Internal Revenue Service?  These are common questions a business may ask Denver Tax Attorney Denver Tax Lawyer IRS Tax Attorney  their tax attorney or CPA if they owe taxes to the IRS and have been asked to complete Form 433B.  The article below has been drafted by a Denver tax attorney at The McGuire Law Firm to explain and discuss Form 433B.

Form 433B is a collection information statement for businesses used by the Internal Revenue Service when a business owes taxes to the IRS and the IRS is requesting information to determine what the business can or cannot pay to resolve the tax debt.  Form 433B would be used for multi-member LLCs, certain partnership and corporations.

 

Form 433B acquires information about a taxpayer such as:

 

–         Name, address and contact information of the business

–          Owners of the business and ownership interests

–          Business assets including fair market value, amount owed on an asset or leased assets, or business equipment (business assets may include equipment, vehicles, tools, real property)

–          Business income and expenses (generally an income statement can be provided)

–          Business bank accounts- both checking and savings accounts

This information is used by the Internal Revenue Service to determine the businesses collection potential, meaning what the business can pay on a monthly installment agreement to resolve any tax debts.  If a business plans to submit an offer in compromise, then the business would prepare and submit Form 433B OIC.  Businesses, like individuals may be able to settle their tax debts with the Internal Revenue Service through the IRS Offer in Compromise Program.

If a business owes 941 employment taxes, this tax debt may create another issue for the business owners or other individuals involved with the business.  The trust fund portion of the 941 taxes (what is withheld from an employee’s paycheck) can be personally assessed to the willful and responsible parties of the business through the Trust Fund Recovery Penalty.  This tax debt may be assessed to one or more individuals and each party is held jointly and severally liable, meaning the IRS can collect all of the trust fund amount from one individual even if multiple individuals are responsible for the trust fund recovery penalty.

If your business owes taxes to the Internal Revenue Service, it is recommended that you contact a tax attorney or tax professional.  Most will offer a free consultation and could help you resolve the issue with the IRS and potentially save money.  A Denver tax attorney at The McGuire Law Firm can assist you individually or your business in resolving a tax debt with the IRS or another tax matter.

You can contact The McGuire Law Firm at 720-833-7705 or John@jmtaxlaw.com to speak with a Denver tax attorney and schedule your free consultation.

Denver Small Business Attorney

A business attorney at The McGuire Law Firm can assist you with your business needs from choice of entity, formation and structure to contract drafting & review and the sale, transfer of disposition of your business assets or interests.

 

Contact The McGuire Law Firm to schedule your free consultation with a Denver small business attorney.  All potential clients receive a free consultation.  Offices in Denver and Golden Colorado.

Tax Issues Regarding Choice of Entity by Denver Tax Attorney

A Denver tax attorney at The McGuire Law Firm can assist you and your business with the tax implications of certain entities.  Additionally, we assist clients as they operate their business by drafting and reviewing contracts, analyzing the tax implications of specific transactions and assisting with the sale, transfer or disposition of business assets or interests.  Please feel free to contact The McGuire Law Firm to speak with a tax attorney at anytime!

Contact The McGuire Law Firm to schedule your free consultation with a tax attorney!

Early Retirement Withdrawals Article by Denver Tax Attorney

What are the tax implications of early withdrawals from my retirement account?  If I take distributions from my retirement Denver Tax Attorney Denver Tax Lawyer IRS Tax Attorneyaccount will I owe taxes or penalties?  These are common questions that an individual may ask their CPA, accountant, tax attorney or tax professional and rightly so.  Withdrawals, especially early withdrawals from a retirement account can greatly impact your tax owed to the Internal Revenue Service when you file your 1040 individual income tax return.  The article below has been drafted by a Denver tax attorney at The McGuire Law Firm to discuss issues regarding taxation and withdrawals from retirement accounts.

Taking early distributions from your retirement account can create additional tax owed to the IRS.  An early withdrawal would be deemed a withdrawal from your retirement plan before you obtain the age of 59.5 years.  If you have withdrawn money from your retirement accounts, you need to report this income to the Internal Revenue Service.  An additional 10% (ten percent) tax applies on the amounts withdrawn if these withdraws are considered early.  This additional 10% tax does not apply to nontaxable withdrawals.  A nontaxable withdrawal would include costs to participate in the plan you are enrolled or participating in.  Your costs can also include contributions that you paid tax on proper to the contributions being placed into your retirement plan.

A rollover is an example and type of nontaxable withdrawal from your retirement account.  Generally, a rollover is a distributions to you of the cash or other assets within one retirement account or plan that contribute to another retirement account or plan.  Generally, you have 60 (sixty) days to complete a rollover and make sure it is a tax free rollover.

There are exceptions to the 10% additional tax on early withdrawals.  Certain exceptions may be different for different types of retirement plans.  The exceptions, such as withdrawals for medical payment mean that you avoid the 10% additional tax on the early withdrawal.

When early withdrawals are made from your retirement account, you may need to file a Form 5329, which is titled, Additional Taxes on Qualified Plans (including IRAs) and other Tax Favored Accounts.  Form 5329 would be filed with your 1040 Individual Income Tax Return with the IRS.

It is important to make sure that you properly claim any early withdrawals and understand the tax laws surrounding a rollover from one retirement account to another.  A Denver tax attorney at The McGuire Law Firm can assist you with your tax questions and matters.  Whether you have a personal tax question or a business tax question a tax attorney at our firm can assist you.

Please contact The McGuire Law Firm to speak with a tax attorney and schedule your free consultation!  A free consultation is offered to all potential clients, and we look forward to hearing from you.