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Tax Tip Of The Week | No. 230 | Special Holiday Edition… December 25, 2013

Posted by bradstreetblogger in : Tax Tip, Taxes, Taxes, Uncategorized , 1 comment so far

Tax Tip of the Week | December 25, 2013 | No. 230 | Special Holiday Edition…

Enjoy The Holidays!

We are going to take a break from tax planning this week.  Instead, the family of Bradstreet & Company would like to wish you and your family the most joyous holiday season and best wishes for 2014.

We hope you have enjoyed the Tax Tip of The Week this year.  Please let us know what topics you would like us to cover as we enter the New Year.

Is the Tax Tip of the Week real?
While your kids are questioning if Santa is real, we continue to receive some interesting feedback that some of you don’t realize this is really Bradstreet CPAs reaching out each week (… some suspect this is a “packaged” communication to which we add our logo.) Well, rest assured it’s us and we’d love to hear from you.

Enjoy the week and, “Yes Virginia, there is a Santa Claus”.

Rick Prewitt – the guy behind TTW
…until next week.

Tax Tip of the Week | No. 229 | Happy 100th To Form 1040! December 18, 2013

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Tax Tip of the Week | December 18, 2013 | No. 229 | Happy 100th To Form 1040!

Before we leave….

As we say goodbye to 2013, we would be remiss not to acknowledge the 100th Anniversary of the Form 1040 tax return.

Our system of collecting personal income taxes made its debut in 1913 following the ratification of the 16th Amendment. The original Form 1040 was three pages, plus a single page of instructions.

That’s it—-the entire package was four pages long!  That’s a far cry from today’s multitude of forms and schedules not to mention the thousands of pages of instructions.

Only Americans with net incomes exceeding $3,000 were required to file. The initial tax rate was 1% with a maximum tax rate of 6% for net incomes exceeding $500,000.  Based on the cost of living at the time, only about 35% of taxpayers were required to file that first tax return.

Here is a link to that first Form 1040: [http://www.irs.gov/pub/irs-utl/1913.pdf].  This is a fun form to peruse. There are some great archaisms here, including discussion of “losses occurred during shipwreck”, provisions for mine owners, and detailed instructions for how farmers are supposed to figure income on wool and hides of slaughtered animals.

This initial form was due March 1, 1914.  Hopefully our forefathers and mothers in Dayton had the records they needed to complete this form following the Great Dayton Flood of 1913.

We look forward to helping you understand your 2013 Form 1040 in the upcoming tax filing season.

You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.  

Rick Prewitt – the guy behind TTW

…until next week. 

Tax Tip of the Week | No. 228 | A Year-End Tip Worth Repeating December 11, 2013

Posted by bradstreetblogger in : Charitable Giving, Tax Planning Tips, Tax Tip, Taxes , 1 comment so far

Tax Tip of the Week | December 11, 2013 | No. 228 | A Year-End Tip Worth Repeating

Before Santa comes to visit, here is a year-end tax savings tip to consider:

Go through your house and garage and see what items you have not used in the last two years and donate them to charity.  You can clean out space for all the new toys that are coming and receive a tax deduction for it!

The IRS requires that these non-cash donations must be in “good condition or better”.  Furthermore, you can only deduct the Fair Market Value (FMV) of the items donated.  The Salvation Army’s web site provides a guide that you can use to determine the FMV.  You can view the guide by going to:  http://www.thetaxdude.com/uploads/Salvation_Army_Valuation_Guide_for_Donated_Items.pdfIf the FMV exceeds $500 you will need to complete Form 8283 as part of your tax return.  On this form you will need to list: name and address of the donee organization, date of the contribution, description of the items donated, FMV and the original cost of the items donated.

If you donate a car, or have non-cash contributions exceeding $5,000 give us a call to discuss the details.

We hope Santa is good to you this year while you take as many tax deductions as you can.

You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.
 
Rick Prewitt – the guy behind TTW

…until next week. 

Tax Tip of The Week | No. 227 | Millions Owed In Business Tax Refunds December 4, 2013

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Tax Tip of the Week | December 4, 2013 | No. 227 | Millions Owed In Business Tax Refunds

How To Get Your Share…

The Ohio Department of Taxation owes millions in business tax refunds. Ohio Tax Commissioner Joe Testa said his agency is accelerating its outreach to businesses that inadvertently overpaid their taxes in order to make sure they are refunded every dollar owed to them.

Testa said the department has identified about $30 million owed to business taxpayers and will be contacting those businesses and helping them apply for their refund. This new wave of refunds involves three taxes:

1.  Sales and use

2.  Corporate franchise

3.  Employer and school district withholding

It is unclear how many companies were affected because it’s likely many recipients were eligible for a refund in more than one tax period.

Nearly a year ago, the Department of Taxation discovered there were overpayments associated with the CAT and began issuing refunds. This latest round primarily deals with other tax payments.

In the past, businesses were not made aware of tax overpayments or the amount. Refunds were only made if businesses caught the mistake themselves and asked for their money back, and then refunds were only made for the amount the taxpayer requested.

“We were shocked when we learned that the department historically made no effort to alert business taxpayers that they may be due a refund” Testa said. “The law may not have required them to notify taxpayers but that’s not how this administration works. We believe strongly that this money belongs to the taxpayer, not the government, and we are changing our systems and culture to make sure the taxpayer’s interest is protected now and in the future.”

Find out whether your business is eligible for a refund by calling 800.304.3211.

You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.

Rick Prewitt – the guy behind TTW

…until next week.