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If your elderly parent’s mental state is deteriorating to the point where he or she is unable to manage day-to-day activities, it may be time to make the difficult decision to have him or her declared incapacitated. But how do you know if such action is necessary? 2 key questions Knowing the answers to these two key questions can help you determine whether it’s necessary to have a parent declared...

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December 30, 2016

The IRS is requesting more help with its Form W-2 verification program. The program was implemented during 2016 as a way to combat tax identity theft and refund fraud. It’s now being expanded. The IRS and payroll service providers will place a 16-digit verification code on 50 million 2016 W-2s (up from 2 million for 2015). The code should be entered on electronically filed personal tax returns. The IRS is...

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December 28, 2016

The U.S. Tax Court held that a tax code rule involving charitable donations doesn’t apply currently because IRS hasn’t yet issued regs about it yet. The rule provides a waiver of the requirement that a charitable donor must secure and maintain contemporaneous written acknowledgment from the donee with respect to certain information if the donee files a return with that information “on such form and in accordance with such regulations...

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December 28, 2016

Come tax time, owner-employees face a variety of distinctive tax planning challenges, depending on whether their business is structured as a partnership, limited liability company (LLC) or corporation. Whether you’re thinking about your 2016 filing or planning for 2017, it’s important to be aware of the challenges that apply to your particular situation. Partnerships and LLCs If you’re a partner in a partnership or a member of an LLC that...

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December 28, 2016

Retirement plan contribution limits are indexed for inflation, but with inflation remaining low, most of the limits remain unchanged for 2017. The only limit that has increased from the 2016 level is for contributions to defined contribution plans, which has gone up by $1,000. Nevertheless, if you’re not already maxing out your contributions, you still have an opportunity to save more in 2017. And if you turn age 50 in...

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December 28, 2016

Reminder: Jan. 31 is the due date for W-2 and certain 1099-MISC forms. Unlike in prior years, 2016 W-2 forms (“Wage and Tax Statement”) that report employee compensation and all 1099-MISC forms (“Miscellaneous Income”) that report nonemployee compensation must be filed by Jan. 31, 2017. Many states require employers to file copies of Form W-2 with the state’s taxing authority. While several of those states had Jan. 31 due dates...

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December 24, 2016

FBAR filing deadline pushed back for some. Proposed regs, issued in March, would expand and clarify exemptions from Report of Foreign Bank and Financial Accounts (FBAR) reporting for certain individuals with signature authority over, but no financial interest in, one or more financial accounts. Now the Financial Crimes Enforcement Network (FinCEN) has extended the FBAR filing due date to April 15, 2018, for those individuals. The extension applies to the...

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December 24, 2016

If you own intellectual property (IP), such as a patent or copyright, you need to know how to account for it in your estate plan. These intangible assets can be highly valuable, and you’ll want them to be handled according to your wishes after you die. 2 important questions IP generally falls into one of these categories: patents, copyrights, trademarks or trade secrets. For estate planning purposes, IP raises two...

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December 24, 2016

Business owners get to make executive decisions. It’s one of the perks of the job. But acting unilaterally when buying business software can be a risky move. Because new technology affects the entire team, the entire team (or at least key members) should have input on the choice. And while it may be impossible to please everyone, it’s possible to come close. Management feedback Certain kinds of new business software...

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December 24, 2016

If you don’t make a 2016 Coverdell Education Savings Account (ESA) contribution by December 31, the opportunity will be lost forever. Contributions aren’t deductible, but ESAs can grow tax-deferred and withdrawals used for qualified education expenses (not just for college, but also for elementary and secondary school) are tax-free. The annual contribution limit is $2,000 per beneficiary, subject to an income-based phaseout. If you don’t contribute $2,000 in 2016, you...

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December 21, 2016