Tax Musings of a Burbank CPA: Can’t Deduct Medical Expenses? Maybe You Can!

As most of you know, because of the 10% of AGI limitation, it has become harder and harder to deduct medical expenses on your individual tax return.  Well, in certain circumstances you can still get a medical deduction. If you have a business where you are self-employed, you have an option to deduct your medical insurance on page one of your 1040 instead of as an itemized deduction.  This is the “self-employed health insurance” provision of the tax code.  There are some provisions you have to follow to get the deduction as follows: 1. YOU ARE A SOLE-PROPRIETOR OR A SINGLE PERSON LLC:   If your business generates a profit, you can deduct your health insurance expense for you and your dependents on line 29 of your 1040 up to the profit of your business on line 12. 2. YOUR BUSINESS IS A PARTNERSHIP OR A REGULAR LLC:  The health insurance should be paid or reimbursed to you through the entity you are a partner of.  Once again, you can deduct the insurance on line 29 up the the profit from the business on your form K-1. 3.  YOUR BUSINESS IS AN S-CORPORATION:  If you are a shareholder of the corporation and [...]

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Musings of a Burbank CPA: Things to Think About When You Buy a House

If you are tired of renting and are planning to buy a house in the near future, there are some things to seriously think about before buying: 1. FIGURE OUT WHAT YOU CAN AFFORD:   Figure out all the monthly expenses that will go into the house; always remember the mortgage, real estate tax, utilities, association fees (if any), insurance, plus repairs and other potential emergency items.  Also figure a down payment on the house to reduce Private Mortgage Insurance plus the mortgage payment before buying a house.  Be sure to figure in any tax savings from real estate tax and mortgage interest deductions to reduce your monthly expenses. Put it all together and see what you can actually pay for a house within your budget. 2. CHECK OUT THE HOUSE PAPERWORK AND OTHER ITEMS:   As well as a home inspection, make sure all renovations are permitted and all other items are in order.  You need a good realtor who can check out items on the MLS, then follow up with associations and other organizations before you get in too deep. 3. PICK OUT A HOUSE YOU LIKE:  Buying a residence you don’t like owning just to buy something [...]

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Tax Musings of a Burbank CPA: IRS Me-F Efile System to Shut Down For Update

If you need to still efile your 2013, 2014 and 2015 individual and business tax returns, be aware that the IRS has finalized the Me-F efile production shutdown and cutover schedule for 2016-2017. Shutdown begins on Wednesday, November 30, 2016, at 11:59 a.m. in order to prepare the system for the upcoming Tax Year 2016 Filing Season. You need to transmit returns by 10:00 a.m. and receive acknoledgements by the 11:59 a.m.  After that, the system cannot be accessed again until MeF reopens for 1040 MeF Production for Filing Season in 2017. You are also unable to efile 2013 after the shutdown and must paper file those returns. For more information, call or email me and we can discuss it.    For financial,  accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net  Phone: 818-317-6035   Website: www.briantstonercpa.com AWARDED BEST ACCOUNTANT IN BURBANK, CA BY BEST BUSINESSES 2016, 2015 AND 2014!   Android and the IPhone:    Has been Featured On   https://twitter.com/bstonercpa

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