Burbank CPA Tax Musings: Deductibility Of Mortgage Interest On Your Taxes

The question nobody ever asks: is all the mortgage interest my bank form 1098s shows deductible?   You are allowed to deduct mortgage interest if:   1. You took out your mortgages on first and second homes before October 13, 1987 – these mortgages are grandfathered into the rules and you can deduct all your interest.  2. You took out your mortgages on first and second homes after October 13, 1987 and you have $1,000,000 or less in regular mortgage and $100,000 or less in home equity debt (where you borrowed money and did not put the money into the house and did not refinance) you can deduct all your interest on these mortgage loans.  You have to have the mortgages secured by the properties plus make all the payments in 1. and 2. to get the deduction.   3. If you refinance these mortgages, the additional money you take out may not be ‘acquisition indebtedness’, which means it could be considered personal loans and the interest on that part of the mortgage not deductible.  If you don’t have home equity debt $100,000 of the additional mortgage refinanced can still be deducted, but the rest can’t.  You will have to allocate the interest [...]

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CPA Tax Musings: Five Tips to Get Ready for a Pain-Free Tax Time

  With the holiday season just around the corner, it’s a perfect time to get your financial records in order. Tax moves you make now can mean finding more “green” to spend on family gifts and festivities. Here are five quick tips for you to feel more prepared about your financial status as you go into year-end. Avoid Penalties This time of year is ideal to double-check your tax payments to make sure enough has been paid in, and even more important, to avoid overpaying so your money is not tied up unnecessarily. If you’re not sure of your 2013 tax liability, check with your tax preparer. Balanced Books Rather than wait until the busiest time of year for accountants and bookkeepers, you can get a head start now on catching up your books You’ll have more of their attention and you may even avoid a rate increase if you get your books done early. Completed bank reconciliations are a very important part of catching up. Forms It’s not too early to get your orders in for the forms you need at year-end like your W-2s, W-3s, 1099s, and 1096s. That way, your forms will be onsite when you’re ready. [...]

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General Musings of a Burbank CPA: Wolters Kluwer CCH Identifies Top Trends Affecting Accounting Firms

There are some trends that will affect accounting firms going forward.  Here is an article in Accounting Today by Michael Cohn identifying these trends and how firms feel about how prepared they are: http://echo4.bluehornet.com/ct/49555533:28273190389:m:1:2505976388:CB3F4F6FCCD4347892B0E91401496019:r The items pinpointed are Client Service, Technology, Digital Mobility (reasearch availability), Talent Management and Social Media.  Firms answered the survey and determined how prepared they were in each of the trends.  Five Hundred firms were involved in the survey and the results were discussed by Wolters Kluwer CCH president and CEO Teresa Mackintosh at the CCH Connections conference in Orlando, Florida on October 27.   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    Android and the IPhone:        Has been Featured On https://twitter.com/bstonercpa

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