Blog
Making the most of your business’s NOL
If during 2013 income tax return filing you found that your business had a net operating loss (NOL) for the year, the news isn’t all bad. While no one enjoys being unprofitable, an NOL does have an upside: tax benefits. In a nutshell, an NOL occurs when a company’s...
Don’t inadvertently miss filing deadline
If you still file a paper return, it’s important to know the IRS’s “timely mailed = timely filed” rule: If your tax return filing deadline April 15, it’s considered timely filed if it’s postmarked by midnight on April 15. But just because you drop your return in a...
Can I Claim My Elderly Parent as a Dependent?
It might be possible for you to deduct up to $3,900 on your 2013 tax return under the adult-dependent exemption, and claim your elderly parent as a dependent. In most cases the parent must have less gross income for the tax year than the exemption amount....
It’s Not Too Late to Make a 2013 Contribution to an IRA
Tax-advantaged retirement plans allow your money to grow tax-deferred — or, in the case of Roth accounts, tax-free. But annual contributions are limited by tax law, and any unused limit can’t be carried forward to make larger contributions in future years. So it’s...
To Expense or Capitalize; Treasury Decison 9636
The New Cap and Repair Regulations Client Question: What are the rules regarding the new IRS cap and repair regulations regarding expensing versus capitalizing certain expenditures such as equipment repairs, fencing supplies, etc.? Nichols Accounting’s Answer: In...
To Expense or Capitalize?
The New Cap and Repair Regulations Client Question: What are the rules regarding the new IRS cap and repair regulations regarding expensing versus capitalizing certain expenditures such as tractor repairs, fencing supplies, etc.? Nichols Accounting’s Answer: In...
Your 2013 Return May be Your Last Chance for 2 Depreciation-related Breaks
If you purchased qualifying assets by Dec. 31, 2013, you may be able to take advantage of these depreciation-related breaks on your 2013 tax return: 1. Bonus depreciation. This additional first-year depreciation allowance is, generally, 50%. Among the assets that...
2013 Higher Education Breaks May Save Your Family Taxes
Tax credits can be especially valuable because they reduce taxes dollar-for-dollar; deductions reduce only the amount of income that’s taxed. A couple of credits are available for higher education expenses: 1. The American Opportunity credit — up to $2,500 per year...
Don’t Overlook Reinvested Dividends
One of the most common mistakes investors make is forgetting to increase their basis in mutual funds to reflect reinvested dividends. Many mutual fund investors automatically reinvest dividends in additional shares of the fund. These reinvestments increase tax...