Murstein CPA

11/16/2021

You don't need to contribute to traditional and ROTH IRAs before the close of the year and you have until April 15 to contribute. This is particularly important for taxpayers who want to fund ROTH IRAs because contributions may be limited if your income exceeds thresholds.

Use a comparison chart to learn how to save money for your retirement with traditional and Roth IRAs.

12/31/2017

The IRS issued guidance on the tax treatment of cryptocurrencies.

12/28/2017

IRS Advisory: Prepaid Real Property Taxes May Be Deductible in 2017 if Assessed and Paid in 2017

The Internal Revenue Service advised tax professionals and taxpayers today that pre-paying 2018 state and local real property taxes in 2017 may be tax deductible under certain circumstances.

The IRS has received a number of questions from the tax community concerning the deductibility of prepaid real property taxes. In general, whether a taxpayer is allowed a deduction for the prepayment of state or local real property taxes in 2017 depends on whether the taxpayer makes the payment in 2017 and the real property taxes are assessed prior to 2018. A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017. State or local law determines whether and when a property tax is assessed, which is generally when the taxpayer becomes liable for the property tax imposed.



The following examples illustrate these points.



Example 1: Assume County A assesses property tax on July 1, 2017 for the period July 1, 2017 – June 30, 2018. On July 31, 2017, County A sends notices to residents notifying them of the assessment and billing the property tax in two installments with the first installment due Sept. 30, 2017 and the second installment due Jan. 31, 2018. Assuming taxpayer has paid the first installment in 2017, the taxpayer may choose to pay the second installment on Dec. 31, 2017, and may claim a deduction for this prepayment on the taxpayer’s 2017 return.



Example 2: County B also assesses and bills its residents for property taxes on July 1, 2017, for the period July 1, 2017 – June 30, 2018. County B intends to make the usual assessment in July 2018 for the period July 1, 2018 – June 30, 2019. However, because county residents wish to prepay their 2018-2019 property taxes in 2017, County B has revised its computer systems to accept prepayment of property taxes for the 2018-2019 property tax year. Taxpayers who prepay their 2018-2019 property taxes in 2017 will not be allowed to deduct the prepayment on their federal tax returns because the county will not assess the property tax for the 2018-2019 tax year until July 1, 2018.



The IRS reminds taxpayers that a number of provisions remain available this week that could affect 2017 tax bills. Time remains to make charitable donations. See IR-17-191 for more information. The deadline to make contributions for individual retirement accounts - which can be used by some taxpayers on 2017 tax returns - is the April 2018 tax deadline.



IRS.gov has more information on these and other provisions to help taxpayers prepare for the upcoming filing season.

12/06/2017

4th quarter federal and state estimated tax vouchers are due on January 16th.

12/06/2017

Are you over 70 and 1/2 years and own a traditional IRA or 401(K)? If yes, then don't forget to take your required minimum distribution before December 31st.

10/30/2017

Small business owners should make sure to reconcile their bank and credit card statements to monthly billing statements. This will prevent differences on your balance sheet at the end of the year.

10/08/2017

October 16'th is the deadline for personal tax returns on extension.

12/29/2016

This year's deadline for issuing 1099-MISC forms is January 31, 2017. Businesses who paid independent contractors or unincorporated companies $600 or more should start collecting W-9 forms.

12/29/2016

10/27/2016

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Specialties: Doug J. Murstein, CPA: Specializes in tax return preparation services for individuals and small business, tax planning, small business consulting, business start-up advice, and accounting and bookkeeping services. Provides…