Author Archives: c06675329

Final Notice: Tax Extensions Coming Due

2017 Tax Extensions are coming Due!

  • Business Returns Due September 17, 2018
  • Individual Returns Due October 15, 2018

Note:  In order for tax returns to be complete by the due dates above, information must be received by our office no later than these dates:

  • Business Returns – September 7, 2018
  • Individual Returns – October 5, 2018

Please email or call Tina at 920-277-2991 to schedule an appointment for your 2017 tax return.

This is Final Notice of Tax Extension Due Dates from our Office.  Please plan accordingly.  Thank you!

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Real Estate Professionals: Like-Kind Exchanges & Rehabilitation Credit

1031 Like-Kind Exchanges Applies to Only Real Property:

Like-kind exchanges are the exchange of real property used for business or held as an investment solely for other business or investment property that is the same type or “like-kind”. This has long been permitted under the Internal Revenue Code for all business property such as real estate, machinery, equipment, and vehicles.  Generally, a like-kind exchange, allows the gain to not be recognized on the tax return under Internal Revenue Code Section 1031. If, as part of the exchange, other (not like-kind) property or money is received, a gain to the extent of the other property and money received is recognized. You can’t recognize a loss.

However, under the Tax Cuts and Jobs Act, Section 1031 Like-Kind Exchanges applies only to exchanges of real property and not to exchanges of personal or intangible property. An exchange of real property held primarily for sale still does not qualify as a like-kind exchange. A transition rule in the new law provides that Section 1031 applies to a qualifying exchange of personal or intangible property if the taxpayer disposed of the exchanged property on or before December 31, 2017, or received replacement property on or before that date.

Thus, effective January 1, 2018, exchanges of machinery, equipment, vehicles, artwork, collectibles, patents and other intellectual property and intangible business assets generally do not qualify for non-recognition of gain or loss as like-kind exchanges. However, certain exchanges of mutual ditch, reservoir or irrigation stock are still eligible for non-recognition of gain or loss as like-kind exchanges.

 

Rehabilitation Credit:

The Tax Cuts and Jobs Act impacts the Rehabilitation Tax Credit for amounts paid or incurred for qualified expenditures after December 31, 2017. The credit is a percentage of expenditures for the rehabilitation of qualifying buildings in the year the property is placed in service.

The new legislation:

  • Requires taxpayers take the 20-percent credit ratably over five years instead of in the year they placed the building into service, and
  • Eliminates the 10 percent rehabilitation credit for the pre-1936 buildings.
  • A transition rule provides relief to owners of either a certified historic structure or a pre-1936 building by allowing owners to use the prior law if the project meets these conditions:
  • The taxpayer owns or leases the building on January 1, 2018 and at all times thereafter, or
  • The 24- or 60-month period selected for the substantial rehabilitation test begins by June 19, 2018.

Monthly Newsletter:

Don’t forget to sign up for our monthly newsletter written specifically for Real Estate Professionals by emailing info@integrityintaxllc.com to request a monthly email.

Thank you for reading my blog,

Tina

Tax Reform & Your 2018 Tax Return

Wondering how the new Tax Law will impact your tax return? Over the next week, we will be sending our 2017 clients a letter of the specific items that were reported on their 2017 tax return that, if reported in 2018, may be impacted for 2018 by Tax Cuts and Jobs Act.  This is just one of the many superior services we offer to our clients!

This new law affects many areas of tax. If you would like to discuss how this impacts your specific tax return, I’d love to meet with you!  You can contact me at 920-277-2991.

Here’s a look at some of the more important elements of the new law that have an impact on individuals. Unless otherwise noted, the changes are effective for tax years beginning in 2018 through 2025.

  • Tax rates. The new law imposes a new tax rate structure with seven tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The top rate was reduced from 39.6% to 37% and applies to taxable income above $500,000 for single taxpayers, and $600,000 for married couples filing jointly. The rates applicable to net capital gains and qualified dividends were not changed. The “kiddie tax” rules were simplified. The net unearned income of a child subject to the rules will be taxed at the capital gain and ordinary income rates that apply to trusts and estates. Thus, the child’s tax is unaffected by the parent’s tax situation or the unearned income of any siblings.
  • Standard deduction. The new law increases the standard deduction to $24,000 for joint filers, $18,000 for heads of household, and $12,000 for singles and married taxpayers filing separately. Given these increases, many taxpayers will no longer be itemizing deductions. These figures will be indexed for inflation after 2018.
  • Exemptions. The new law suspends the deduction for personal exemptions. Thus, starting in 2018, taxpayers can no longer claim personal or dependency exemptions. The rules for withholding income tax on wages will be adjusted to reflect this change, but IRS was given the discretion to leave the withholding unchanged for 2018.
  • New deduction for “qualified business income.” Starting in 2018, taxpayers are allowed a deduction equal to 20 percent of “qualified business income,” otherwise known as “pass-through” income, i.e., income from partnerships, S corporations, LLCs, and sole proprietorships. The income must be from a trade or business within the U.S. Investment income does not qualify, nor do amounts received from an S corporation as reasonable compensation or from a partnership as a guaranteed payment for services provided to the trade or business. The deduction is not used in computing adjusted gross income, just taxable income. For taxpayers with taxable income above $157,500 ($315,000 for joint filers), (1) a limitation based on W-2 wages paid by the business and depreciable tangible property used in the business is phased in, and (2) income from the following trades or businesses is phased out of qualified business income: health, law, consulting, athletics, financial or brokerage services, or where the principal asset is the reputation or skill of one or more employees or owners.
  • Child and family tax credit. The new law increases the credit for qualifying children (i.e., children under 17) to $2,000 from $1,000, and increases to $1,400 the refundable portion of the credit. It also introduces a new (nonrefundable) $500 credit for a taxpayer’s dependents who are not qualifying children. The adjusted gross income level at which the credits begin to be phased out has been increased to $200,000 ($400,000 for joint filers).
  • State and local taxes. The itemized deduction for state and local income and property taxes is limited to a total of $10,000 starting in 2018.
  • Mortgage interest. Under the new law, mortgage interest on loans used to acquire a principal residence and a second home is only deductible on debt up to $750,000 (down from $1 million), starting with loans taken out in 2018. And there is no longer any deduction for interest on home equity loans, regardless of when the debt was incurred.
  • Miscellaneous itemized deductions. There is no longer a deduction for miscellaneous itemized deductions which were formerly deductible to the extent they exceeded 2 percent of adjusted gross income. This category included items such as tax preparation costs, investment expenses, union dues, and unreimbursed employee expenses.
  • Medical expenses. Under the new law, for 2017 and 2018, medical expenses are deductible to the extent they exceed 7.5 percent of adjusted gross income for all taxpayers. Previously, the AGI “floor” was 10% for most taxpayers.
  • Casualty and theft losses. The itemized deduction for casualty and theft losses has been suspended except for losses incurred in a federally declared disaster.
  • Overall limitation on itemized deductions. The new law suspends the overall limitation on itemized deductions that formerly applied to taxpayers whose adjusted gross income exceeded specified thresholds. The itemized deductions of such taxpayers were reduced by 3% of the amount by which AGI exceeded the applicable threshold, but the reduction could not exceed 80% of the total itemized deductions, and certain items were exempt from the limitation.
  • Moving expenses. The deduction for job-related moving expenses has been eliminated, except for certain military personnel. The exclusion for moving expense reimbursements has also been suspended.
  • Alimony. For post-2018 divorce decrees and separation agreements, alimony will not be deductible by the paying spouse and will not be taxable to the receiving spouse.
  • Health care “individual mandate.” Starting in 2019, there is no longer a penalty for individuals who fail to obtain minimum essential health coverage.
  • Estate and gift tax exemption. Effective for decedents dying, and gifts made, in 2018, the estate and gift tax exemption has been increased to roughly $11.2 million ($22.4 million for married couples).
  • Alternative minimum tax (AMT) exemption. The AMT has been retained for individuals by the new law but the exemption has been increased to $109,400 for joint filers ($54,700 for married taxpayers filing separately), and $70,300 for unmarried taxpayers. The exemption is phased out for taxpayers with alternative minimum taxable income over $1 million for joint filers, and over $500,000 for all others.

if you would like to discuss how this impacts your specific tax return, I’d love to meet with you!  You can contact me at 920-277-2991.

Thank you for reading my Blog!

Tina

Summer Tax Reminders!

WI – Child Sales Tax Rebate – Hurry ends July 2, 2018

If you haven’t already, applications are being accepted by the Wisconsin Department of Revenue to claim $100 rebate for Wisconsin Sales and Use Tax paid on purchases made for raising a qualified child in 2017. Hurry, applications must be received by July 2, 2018!

 

There are two ways to apply – online or via telephone:

– Online at childtaxrebate.wi.gov. This will be available 24 hours per day/ 7 days per week, this method is the fastest and most convenient way to claim the rebate. Applications can be processed using a computer, tablet, or smart phone.

– Telephone at 608-266-KIDS (5437). This will be available Monday – Friday, 7:45am – 4:30pm, a customer service representative will file a rebate claim on your behalf. This option is available for those who do not have access to the internet or have issues using the online application. There may be significant wait times for a representative.

More information is available on the Wisconsin Department of Revenue website at this link – https://www.revenue.wi.gov/Pages/FAQS/ise-ChildTaxRebate.aspx#1.

 

WI – Sales Tax Holiday – August 1-5, 2018

Sales of certain items are exempt during a five-day period in August 2018 known as the Sales Tax Holiday. Just in time for great back to school shopping! The temporary exemption period will begin on Wednesday, August 1, 2018, and continue through Sunday, August 5, 2018.

During the sales tax holiday, the following items are not taxable:

  • Clothing, if the sales price of any single item is $75 or less,
  • A computer purchased by a consumer for the consumer’s personal use, if the sales price of the computer is $750 or less,
  • School computer supplies purchased by the consumer for the consumer’s personal use, if the sales price of any single item is $250 or less, and
  • School supplies, if the sales price of any single item is $75 or less.

For more information, click on this link –https://www.revenue.wi.gov/Pages/FAQS/SalesTaxHoliday.aspx#sth1

Summer Daycare, Camps, Tax Deductible

Yes, payments to daycare, summer camps, and even babysitters for your children under age 13 may be tax deductible if paid so that you could work. The credit can be up to 35% of expenses paid. Such expenses include summer daycare, camps, babysitters, and even housekeepers. However, overnight camps may not qualify.

To qualify, you must meet all of the following:

  • Have Earned income
  • Be a Custodial parent
  • Child must be under 13 years old
  • Childcare provider cannot be your spouse or the child’s parent
  • Paid so that you can work

For more information see IRS Publication 503; Child and Dependent Care Expenses.

 

Thank you for reading my blog.

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Have a Wonderful Day!

Tina

Today’s Blog Has Gone to the Dogs!

Tax Dollars for Saving Paws Animal Rescue

As our tax season as come to an end, we are donating $873.75 to the fund-raising efforts of the new transport van for Saving Paws Animal Rescue!

Thank you to all those who help us help others in our community!

 

“Can I claim my dog as a Dependent?”

Believe it or not, I am asked this question more than just a few times not only during tax season but throughout the entire year. Although your dog or other furry family member may not qualify as a dependent, I found these blogs written by fellow Tax Pro’s to be quite interesting and in some cases very creative. Read them for yourself and let me know what you think.

Mark J Kohler deals with the question “Is My Pet a Tax Write-off?”.

 

I have also written about this topic in several past posts – beginning with “Doggie Deductions”.

Wisconsin Child Sales Tax Rebate

As long as we on are the topic of dependents, check out my last blog for the Wisconsin Child Sales Tax Rebate – Yes, this is for your “human” child dependents. You must apply between May 15 and July 2 to claim the $100 per child rebate.

 

 

Fun Doggie Events this Summer!

Finally, some local summer fun activities that you can enjoy with your furry family member.

May 20 – Bark in the Park, Wisconsin Timber Rattlers 1:05pm – 4:05pm

https://www.facebook.com/events/122787595191369/

June 23 – Doggy Dip & Sip, The Watering Hole in Green Bay 10am – 3pm

https://www.facebook.com/events/1280195458791574/

 

As always, my favorite for any time of day or evening, the Outagamie County Dog Park a fantastic place to spend with furry friends.

 

Thank you for reading my blog,

Have a Wonderful Day!

Tina

 

 

Wisconsin Child Sales Tax Rebate – Claim May 15 – July 2, 2018!

Only in Wisconsin….Did you know you can claim a Child Sales Tax Rebate?

Yes, this is true! You may be eligible for a $100 rebate for Wisconsin Sales and Use Tax paid on purchases for raising a qualified child in 2017. Applications for the rebate will be accepted May 15, 2018 – July 2, 2018 by using one of the two following methods:

– Online at childtaxrebate.wi.gov. This will be available 24 hours per day/ 7 days per week, this method is the fastest and most convenient way to claim the rebate. Applications can be processed using a computer, tablet, or smart phone.

– Telephone at 608-266-KIDS (5437). This will be available Monday – Friday, 7:45am – 4:30pm, a customer service representative will file a rebate claim on your behalf. This option is available for those who do not have access to the internet or have issues using the online application. There may be significant wait times for a representative.

More information is available on the Wisconsin Department of Revenue website at this link – https://www.revenue.wi.gov/Pages/FAQS/ise-ChildTaxRebate.aspx#1.

Thank you for reading my blog!

Tina

 

 

 

Community Events & Easter Activities in Appleton!

BABES Inc Hats Off Lip-Sync Challenge

Early Bird Registration Ends March 31!

 

BABES Inc Lip Sync Challenge and the Hats Off! 2018 Awards and Reception Event.

When: Friday, April 27, 5:00 PM – 10:00 PM

Where: The Radisson Paper Valley Hotel Ballroom in Appleton

Cost: Early Bird pricing $60 until March 31, $75 after, $450 for a table of 8. Seating limited. Reserve today!

 

Your SPECTACULAR evening includes:

Reception & Silent Auction

Chocolate Sale

Happy Hors of d’oeuvres Buffet

BABES Inc Lip Sync Challenge 3.0

Live Raffle

 

Reservations available online at http://www.babeshastoff.com

Check out Hats Off! Facebook page at https://www.facebook.com/groups/1668023506830931/about/.

 

~ Prizes ~ Raffle Tickets ~ Purchase Here!

Purchase raffle tickets to be included in a drawing for the following 3 prizes:

Blue Harbor Resort, Sheboygan, 2-Night Stay

Fine Jewelry from Avenue Jewelers

Samsung 50” 4K Smart TV with 2-Year Warranty

Raffle Tickets are $20/each; 3 for $50; 5 for $80

Contact our office to purchase at 920-277-2991.  Raffle prizes are drawn the evening of the BABES Inc Hats Off! event.  Winner not need be present to win.

 

Easter Week Activities!

Easter Egg Hunt for your Dog!

Don’t leave out your furry family member this Easter! Some Easter Egg Hunt’s for your dog are:

March 31 10 Am- Noon, Brown County Dog Park, 1000 Pleasant Lane, Green Bay, WI

Cost $5 per dog

Easter Brunch

Apriil 1 10:30 Am – 2:30 PM, TimberRattlers Stadium, 2400 N Casaloma Drive, Appleton, WI

Tickets available at www.milb.com

 

May you & your family have a very, wonderful Easter Sunday!

Tina

2014 Tax Returns Must be Filed by April 17, 2018 to Receive a Refund! 4 Tips to Find Unclaimed Money!

2014 Tax Returns Must be Filed by April 17, 2018 to Receive a Refund. IRS Estimates $1.1 billion waiting to be refunded. IRS estimates $13,041,800 waiting to be refunded just to those in the State of Wisconsin!

 

Unclaimed federal income tax refunds totaling about $1.1 billion may be waiting for an estimated 1 million taxpayers who did not file a 2014 federal income tax return, according to the Internal Revenue Service.

To collect the money, these taxpayers must file their 2014 tax return with the IRS no later than this year’s tax deadline, Tuesday, April 17.

In cases where a federal income tax return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a tax refund. If they do not file a tax return within three years, the money becomes the property of the U.S. Treasury. For 2014 tax returns, the window closes April 17, 2018. The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by that date.

The IRS reminds taxpayers seeking a 2014 tax refund that their checks may be held if they have not filed tax returns for 2015 and 2016. In addition, the refund will be applied to any amounts still owed to the IRS or a state tax agency and may be used to offset unpaid child support or past due federal debts, such as student loans.

By failing to file a tax return, people stand to lose more than just their refund of taxes withheld or paid during 2014. Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit (EITC). For 2014, the credit was worth as much as $6,143. The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2014 were:

 

4 Tips To Find Unclaimed Money

 

Looking for additional information?  Remember to use our Resources tab on our website at www.integrityintaxllc.com!

We have a TON of great information & tools available such as our client worksheets, financial calculators, checklists, due dates, & much more!  Check it out & remember to sign up for our online newsletter!

Thank you for reading my blog!

Tax Updates For Your Reading Pleasure

Congress Passes Bipartisan Budget Act of 2018:  On 2/9/18, Congress passed, and the President signed into law, P.L. 115-123—the Bipartisan Budget Act of 2018 (Budget Act). In addition to funding the federal government through March 23, the Budget Act retroactively extends through tax year 2017 over 30 extender provisions. These include the deduction for qualified tuition and related expenses, the exclusion for cancellation of debt income on a principal residence, and various business tax credits. The Budget Act also provides tax relief to victims of natural disasters, particularly those affected by the California wildfires. From a procedural standpoint, the Budget Act requires the IRS to publish a simplified income tax return (Form 1040SR, to be available for tax years beginning after 2/9/18, for individuals who are age 65 or older by the close of the tax year. Other items are affected as well, such as user fees for installment agreements and certain costs associated with whistleblower awards. P.L. 115-123.

Foreign Reporting—2017 FBAR Filing Deadline Announced:  The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 changed the due date for filing FinCEN Form 114 [Report of Foreign Bank and Financial Accounts (FBARs)] to April 15 of the following calendar year, with a six-month extension to October 15 allowed. (Previously, the due date was June 30 of the following calendar year, with no extension allowed.) Recently, FinCEN announced that 2017 FBARs will be due on 4/17/18, which is the same date 2017 federal income tax returns are due. However, taxpayers who fail to file their FBARs by that date will be granted an automatic extension to 10/15/18—a specific request for extension will not be required. The announcement can be found at www.fincen.gov/sites/default/files/shared/FBAR_Due_Date_Clarification_PD02-02-2018.pdf .

IRS to Reject 2017 Returns without Health Care Information Reported:  The IRS has said it will not accept electronically filed 2017 tax returns that do not report on the taxpayer’s compliance with the individual mandate provisions of the Affordable Care Act (ACA). The IRS did not reject such returns for 2016 after the President issued an executive order that directed federal agencies to waive, defer, or delay the implementation of ACA provisions that imposed penalties or fees. The Tax Cuts and Jobs Act reduces the amount of the penalty, or Shared Responsibility Payment (SRP), to zero for months beginning after 12/31/18, but for 2017, the IRS says that it won’t consider an electronically filed tax return complete and accurate if the taxpayer does not report full-year coverage, claim an exemption, or report an SRP on the return. The IRS’s statement can be found at www.irs.gov/tax-professionals/aca-information-center-for-tax-professionals .

Procedure—Taxpayers Are Encouraged to Renew Expired ITINs:  The IRS is urging taxpayers with expired Individual Taxpayer Identification Numbers (ITINs) to renew them as soon as possible. During tax season, the ITIN renewal application process can take up to 11 weeks. ITINs are issued by the IRS to individuals with a tax filing or payment requirement who aren’t eligible for a Social Security Number (SSN). ITINs not used on a tax return at least once in the last three years are set to expire. Those with middle digits of 70, 71, 72 or 80 expired on 12/31/17, and those with middle digits of 78 or 79 expired on 12/31/16. Expired ITINs must be renewed if the taxpayer will have a filing requirement in 2018. Taxpayers who are now eligible for a SSN or have already obtained one, do not need to renew their ITINs, but should notify the IRS of their SSN and previous ITIN so their accounts can be merged. An ITIN can be renewed by filing Form W-7 with all required documentation. News Release IR 2018-18.

Looking for additional information?  Remember to use our Resources tab on our website at www.integrityintaxllc.com.  We have a plethora of information available such as our client worksheets, financial calculators, checklists, due dates, & much more!  Check it out & remember to sign up for our online newsletter!

Thank you for reading my blog!

 

 

It’s Here – Tax Season 2018!

Our Tax Season has begun!

IRS is officially accepting E-File Tax Returns beginning Jan. 29!

To Reserve an appointment call: (920) 277-2991; Email: tinak@integrityintaxllc.com

 

We have many NEW convenient methods for you to have your taxes prepared!

  • Appointments: We are currently booking appointments all day Monday, Tuesday, and Friday. Evening appointments are also available on these days. Saturday appointments are available 10am – 4pm. Sunday appointments are available by appointment only.
  •  
  • Drop Offs: You can drop off/pick up your tax information at our office with no appointment!
  •  
  • Online: We can prepare your taxes for you from the comfort of your own home! Simply follow these 3 easy steps to get started:
  1. Send an email to request access to our Secure Client Portal to tinak@integrityintaxllc.com. We will then send you an email with access to our Secure Client Portal.
  2. Upload your tax documents, copy of driver’s license for primary taxpayer, copy of Social Security Card (or ITIN letter) for all dependents, and completed client interviews.
  3. Upon receiving your tax documents, we will send you an invoice for tax preparation services. Payment of invoice is required before tax preparation is started.

Attachments: We’ve attached worksheets for you to complete and assemble your tax information. All worksheets may not apply to your situation.   Use the worksheets that apply. We’ve also attached a copy of our privacy policies.

Added Bonus: We’ve attached a copy of the Tax Update’s Special Edition Newsletter as it highlights important changes with the passing of the New Tax Law.

Why Us? We support local animal rescues/shelters throughout the NE Wisconsin area! A portion of your tax return fee is contributed to pets in need. This year we are helping Saving Paws Animal Rescue in their purchase of an animal transport van. Thank you for helping us help others!

 

 

 

Additional Services We Offer:

New Tax Law Planning: The majority of tax returns will be changing for the next 8 years. We can help you determine the impact this New Law has on your tax return, plan with tax-saving techniques & strategies, and most of all, reduce your concerns and fears over what this New Law means for you. If you are a sole proprietor, small business, or have rental property, I definitely would like to meet with you mid-year to plan for the New Sec. 199A Qualified Business Income Deduction (QBI). This deduction could be huge for you & your business! Lack of planning could result in a lost 20% QBI Deduction!

ITIN Application & Tax Compliance of Foreign Individuals living in the US: Foreign Individuals who are not eligible for a SSN but have a tax filing requirement must apply for an ITIN (Individual Taxpayer Identification Number). Additionally, certain ITIN’s have expired at the end of the year and thus must be renewed before a tax return can be filed. When applying or renewing an ITIN, original documents such as a passport must be submitted to the IRS. However, we have an agreement with the IRS that enables us to verify your Foreign Status and Identity & issue a Certificate of Accuracy which is then sent to the IRS with your application rather than the original documents. No more sending original passports, driver’s license, etc to the IRS!

Estate/Trust Tax Returns: Are you the administrator/executor of an estate or trust? Have you experienced the loss of your spouse or parents? We will work with your legal counsel to prepare the Final 1040, Estate or Trust Form 1041 & 706 (if applicable).

Gift Tax Return: If you have gifted over the annual exclusion of $14,000, you may be required to file Form 709.

Payroll Processing: Would you like to outsource your small business payroll without the large fees? We are your local, convenient, and trusted payroll processing partner. We process your payroll timely, submit federal and state payroll taxes on your behalf, and prepare and file quarterly and year-end reports including issuing employee W-2’s and 1099’s.

Thank you for choosing Integrity in Tax & Accounting, LLC for your tax & accounting needs! We value each and every client and pride ourselves on providing quality service, superior knowledge, and year-round support to our clients!