And a Happy New Year to you all. Well, now that January is here, just a reminder that the IRS has changed federal filing dates for various business entities (just to make life a little more interesting.) 1. YOU ARE A SOLE-PROPRIETOR OR A SINGLE PERSON LLC: Your filing date is the same for 2016 returns – April 18, 2017 with an extension of six months to October 16, 2017. 2. YOUR ENTITY IS A PARTNERSHIP OR A REGULAR LLC: Your filing date for 2016 returns is now March 15, 2017 with an extension of six months to September 15, 2017. 3. YOUR ENTITY IS AN S-CORPORATION: Your filing date for 2016 stays the same - March 15, 2017 with an extension of six months to September 15, 2017. 4. YOUR ENTITY IS AN C-CORPORATION: This is a little more complicated - - If you have a calendar year C – Corp your filing date is April 18, 2017 with a 5 month extension to September 15, 2017 until 2026, when it changes to 6 months. - If you have a fiscal year C – Corp with an year end of June 30, your filing date is September 15, 2017 with a 7 month extension to [...]
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 [...]
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 [...]