Identity Theft: What to Watch out for and What to do

Tax-related identity theft typically occurs when someone uses your stolen Social Security number to file a tax return claiming a fraudulent refund. Anyone can fall victim to identity theft. Here is an important reminder of how to protect yourself from identity theft, what to watch out for, and what do if your identity has been compromised:

1. Protect your Records. Do not carry your Social Security card with you, or any other documents with your Social Security Number (SSN) on them. Only provide your SSN if it is completely necessary and you know the person requesting it. Routinely change passwords for all of your Internet accounts and protect your personal information at home and protect your computers with anti-spam and anti-virus software.Continue reading

Preparing an Effective Business Plan

Whether you’re starting a new company, seeking additional financing for an existing one, or analyzing a new market, a business plan is a valuable tool. Think of it as your blueprint for success. Not only will it clarify your business vision and goals, but it will also force you to gain a thorough understanding of how resources (financial and human) will be used to carry out that vision and goals.

Before you begin preparing your business plan, take the time to carefully evaluate your business and personal goals as this may give you valuable insight into your specific goals and what you want to accomplish. Think about the reasons why you are starting a new business; maybe you’re ready to be your own boss, or you want financial independence. Whatever the reason it is important to determine the “why.”Continue reading

Traditional IRAs vs. Roth IRAs

Two types of IRAs are available to fund your retirement: Traditional IRAs and Roth IRAs. While both are subject to many of the same rules there are several important differences. It’s important to understand these differences because the type of individual retirement account (IRA) you choose can significantly impact your financial future and that of your family.

Who Can Contribute to an IRA?

Any person with income from wages or self-employment can contribute to an IRA (either traditional or Roth)–including children as long as they meet the income conditions. Individuals can contribute up to $5,500 in 2017. A catch-up contribution of $1,000 is allowed for anyone over the age of 50, for a total contribution of $6,500. Contributions are also allowed for stay-at-home spouses (up to $5,500 in 2017) as long as the couple’s wages or self-employment earnings total at least $11,000.Continue reading

Virtual Currency Treated as Property for Tax Purposes

Many retailers and online businesses now accept virtual currency for sales transactions but the federal tax implications remain relatively unknown to many retailers. If you’re a retailer who accepts virtual currency such as Bitcoins for transactions, here’s what you need to know.

Sometimes, virtual currency such as Bitcoins operate like “real” currency, i.e. the coin and paper money of the United States or of any other country that is designated as legal tender, circulates, and is customarily used and accepted as a medium of exchange in the country of issuance.Continue reading

Ten Key Tax Facts about Home Sales

In most cases, gains from sales are taxable. But did you know that if you sell your home, you may not have to pay taxes? Here are ten facts to keep in mind if you sell your home this year.

1. Exclusion of Gain. You may be able to exclude part or all of the gain from the sale of your home. This rule may apply if you meet the eligibility test. Parts of the test involve your ownership and use of the home. You must have owned and used it as your main home for at least two out of the five years before the date of sale.

2. Exceptions May Apply. There are exceptions to the ownership, use, and other rules. One exception applies to persons with a disability. Another applies to certain members of the military. That rule includes certain government and Peace Corps workers. For more information about these exceptions, please call the office.Continue reading