Our Blog

Alyssa Hodges, CPA •

The IRS requires “contemporaneous” documentation for certain types of activities and tax deductions. Some of the areas this covers include mileage, meals, and support for the new 250 hour requirement for the rental real estate safe harbor. “Contemporaneous” means that you should be recording the necessary information at the same time you are doing the activity.
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Donna Deos •
 
As being one of the few people here at Mason + Rich, PA without an accounting degree, I can tell you the title of this article scares me too. Before working here, I wouldn’t have had the first clue about what to do and I can also relate to the panic that runs through folks when they see anything from the IRS.
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New Hampshire has an Economic Revitalization Zone Tax Credit that allows for a credit for new employees hired in specific zones throughout the state. To describe this credit as simply as possible, business can get a credit for having a new project including additions or improvements to the property in certain places that are either unused or underutilized industrial parks or vacant land or structures previously used for business purposes if the new project creates new jobs. 
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Lena Rozzi, CPA •

​What is IRC Section 1202?
As an incentive for non-corporate taxpayers to invest in small businesses, Section 1202, Small Business Stock Capital Gains Exclusion, allows for the exclusion of gains associated with Qualified Small Business (QSB) stocks. Section 1202 was initially enacted with the purpose of promoting investments in new ventures and small businesses by allowing taxpayers to exclude 50% of the gain in select small businesses, however, as capital gain rates changed, the Section 1202 exclusion was increased from 50% to 75%, and subsequently to an exclusion of 100%, effective for QSB stocks acquired after September 27, 2010. 

Andrew Luce, CPA •

One of the most commonly used tax savings strategies is done when an individual or employer makes a contribution to a retirement plan. Luckily, as an individual or employer, you still have time to make a retirement plan contribution after December 31st to an employer 401(k), solo 401(k), Self-Employed Pension (SEP), or Individual Retirement Account (IRA) and deduct the contribution on your income tax return. For example, a contribution paid into your retirement plan in 2019 might be deductible on your 2018 income tax return.  The following information summarizes some key facts about these retirement plans, including timing and deductibility of retirement plan contributions, among other things:
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Andrew Luce, CPA •

So by now you’ve likely heard that you need to track your business mileage from your tax preparer but have been resistant to start tracking your mileage because it’s too time consuming or you’re just not aware of the rules. If time is your issue than I will admit up front I cannot help you. However, if you are not aware of the rules than I can help! The following information will help you understand what qualifies for business use vs. personal use and I’ve also include information on what type of information you’ll want to document to retain in your tax records. 
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Andrew Luce, CPA •

​If you are a business owner and keeping tabs on the new tax laws, you’ve likely heard a lot about a QBI (Qualified Business Income) tax deduction and how SSTBs (Specified Service Trade or Businesses) might miss out on this new 20% deduction.  Yes, there is a chance you won’t receive a full 20% deduction if you’re a married business owner, making over $315,000 (the beginning threshold for the QBI tax deduction phase-out), and in healthcare (one of the SSTB classifications), whereas a business owner of a landscaping company will likely fully benefit from this deduction with proper planning.  Before your mind starts racing about the inequalities of the new tax law, we should all be able to agree on at least one thing - the tax rates are lower this year (woohoo!), so it’s not recommended to make less money because you want to qualify for this 20% deduction.  Seriously, this 20% deduction wasn’t around in the past and you weren’t worried about making too much money so why worry about making too much money now when your rates are actually lower.  If you qualify for the deduction it will be gravy on top.  Also, there has been a lot published about this new rule and we are here to help you determine if you will benefit from this deduction but in the meantime keep the dough flowing!  If you’re unsure how this new deduction will impact your business and/or whether or not you’ll be included in the dreaded SSTB category, please feel free to contact me or one of our professionals. 

Lena Rozzi, CPA •
IRS Proposes Safe Harbor for Taxpayers Seeking the Section 199A Deduction for Rental Real Estate Activities
 
On January 18, 2019, the IRS released additional guidance on the much anticipated Section 199A deduction as many taxpayers eagerly await the opening of tax season. Among other issues, the guidance offers taxpayers a proposed safe harbor in determining when rental real estate activities can be treated as qualified trade or business for the purpose of taking the Section 199A deduction. This guidance is provided by the IRS in response to taxpayer uncertainty whether rental real estate activities qualify as a trade or business for the purpose of the Section 199A deduction. 
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Today, January 28th is the opening day of tax season for calendar-year 2018 tax returns. This means that the IRS is officially accepting electronic tax returns and taxpayers can begin submitting their federal returns today. 
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