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Community Events in Appleton this week. Enjoy!

As we celebrate Thanksgiving and the official start to the Christmas Holiday Season, we have listed some upcoming events this week.

Tuesday: Appleton Christmas Parade! The largest nighttime parade in the Midwest with approximately 80,000 people attending! The Parade will begin at 7:00 p.m. at the corner of State St. and College Ave. It will head east on College Ave. to Drew St. To see the route of the parade, click here http://applications.appleton.org/parades/christmas%202017/route.html.

Before the Parade – Santa Scamper Run! Race Start: 6:40 p.m. at corner of State Street & College Avenue. The .08-mile run starts about 1/2 hour prior to the 48th Annual Downtown Appleton Christmas Parade and proceeds down College to Drew St., finishing at City Park.

Course Notes: Due to Jones Park being shut down because of construction of the Fox Cities Exhibition Center, the event will now finish at City Park. Please keep this in mind when choosing where to park for the event. Due to the Jones park construction, the 2018 event will be 0.8 miles long. Good-Luck to all the Runners!

 

Thursday: Turkey Trot & Happy Thanksgiving! This year’s Appleton Turkey Trot starts at 8am with a 5-mile run, 2-mile walk, and dog jog.  The trot starts at the Radisson Paper Valley Hotel downtown Appleton.  After, the turkey trot, we wish everybody a fun-filled day with family and friends!

 

If you are one of the estimated 54 million traveling for the Holiday ~ Very Safe Travels!

 

Saturday: Small Business Saturday ® ~ A day to celebrate and support small businesses and all they do for the community. Bring your Shop Appleton First passport with you on Small Business Saturday on Nov. 24 to the 56 Downtown businesses and get it stamped. Passports will be available in the shops (WSL), to download on line, and in the Thanksgiving Day edition of the Post Crescent. Get 5 stamps and be entered to win over $2000 in prizes.

For a list of all the participating small businesses, click here https://appletondowntown.org/wp-content/uploads/2018/11/2018-Small-Business-Saturday-Passport-Offers.pdf

Thank you for reading our blog!  Have a Very Happy Thanksgiving Holiday!!

 

 

Don’t Forget Your RMD’s!

Before all the excitement, chaos, and family drama of the Holiday Season gets underway, be sure to double check your finances and if you are age 70 ½ years-old or more, Congratulations! You’ve hit a big milestone in your life. Although this one, may be unexpected if you didn’t prepare. Either way, the IRS will love you just the same.

We’ve put together some answers to frequently asked questions regarding Required Minimum Distributions, also known as RMD’s.

Question 1: What is an RMD?

Answer 1: After reaching age 70 ½ years-old, the IRS requires you to take distributions from your retirement accounts and IRA’s.

Question 2: Does this include Roth IRA’s?

Answer 2: No, a Roth IRA is not required to be drawn until the death of the owner of the account.

Question 3: When do I turn 70 ½?

Answer 3: Normally April 1 of the year following the later of the calendar year you either (1) reach age 70 ½ or (2) retire.

Question 4: What date do I need to take the distribution by?

Answer 4: In the year that you turn 70 ½ years-old, you have until April 1 of the following year to take your first RMD. After that, you need to take your RMD by December 31 each year.

Question 5: What if I do not take an RMD once reaching age 70 1/2

Answer 5: You may be subject to a penalty of up to 50% of the excess RMD over the actual amount distributed during a tax year.

Question 6: What if I just simply forgot to take an RMD by December 31? Can I take 2 RMD’s in the next year?

Answer 6: No, you can’t make up for a missed RMD from one year in the next year by taking two RMD’s. Rather, the IRS has the authority to waive the 50% penalty provided that you can establish the gap between the RMD and the amount actually distributed was due to reasonable error and steps are being taken to correct the missed RMD amount.

Question 7: How do I request the IRS waive the 50% penalty?

Answer 7: Complete Form 5322 and attach a statement of explanation.

An excellent article we like is “9 Things You Need To Know About Required Minimum Distributions (RMDs)” at https://www.retirementliving.com/all-about-required-minimum-distributions.

Additional information is available on the IRS website at this link https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-required-minimum-distributions#1.

As always, Thank you for ready my blog,

Tina

 

We Moved ~ New Sign is Up!

We outgrew our office space! Yes, if you have been by our office recently, you’d have to agree – space was a premium!

We have moved to a larger office space (not too far away) down the road on W. College Ave to S. Casaloma Drive (across from Office Max). Our new address is 213 S. Casaloma Drive.

To celebrate our larger office space, we are hosting & would love for everyone to come to one (or both) of our open houses!

Open House Dates:

Wednesday, Nov. 7 @ 4-6pm

Saturday, Nov. 10 @ 11am – 1pm

We will have plenty of fun, food, drinks, and drawings for raffle items!

We look forward to seeing you at our open houses!

Thank you for reading my blog,

Tina

 

 

 

Tax reform brings changes to real estate rehabilitation tax credit

Rehabilitation Tax Credit:

The rehabilitation tax credit offers an incentive for owners to renovate and restore old or historic buildings. Tax reform legislation passed in December 2017 changed when the credit is claimed and provides a transition rule:

  • The credit is 20 percent of the taxpayer’s qualifying costs for rehabilitating a building.
  • The credit doesn’t apply to the money spent on buying the structure.
  • The legislation now requires taxpayers take the 20 percent credit spread out over five years beginning in the year they placed the building into service.
  • The law eliminates the 10 percent rehabilitation credit for 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 owned or leased the building on January 1, 2018, and the taxpayer continues to own or lease the building after that date.
    • The 24- or 60-month period selected by the taxpayer for the substantial rehabilitation test begins by June 20, 2018.

For additional information, please contact our office at info@integrityintaxllc.com or 920-277-2991.

 

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.

 

 

New Location:

Our office is moving this week to 213 S. Casaloma Drive, Appleton ~ it is just down the street on W. College Ave across from Office Max.

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.

Please “Like” and “Share” our FaceBook page.

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