If you’ve been filing a paper tax return for years or you simply let your accountant handle the whole thing, you may be intrigued by the possibility of completing your entire tax return on your computer and then filing online. Should you do it?
In the waning days of last year, the president inked the Gulf Opportunity Zone Act of 2005. This new legislation, following close on the heels of the Katrina Emergency Tax Relief Act (KETRA), includes various tax measures benefiting victims of Hurricanes Katrina, Rita and Wilma.
If the IRS questions one of your write-offs, it will ask for documented proof. Research Recommendations subscribers can obtain a free report that provides a list of the type of written proof you’ll need to verify 25 different kinds of deductions (from bad debts to home-office expenses).
Are you scrambling to complete your calendar-year 2005 corporate return by the March 15 deadline? Instead of slapping things together at the last minute, take the easy way out.
Say you took out a home-equity loan last year and used the cash to pump up your pass-through business, such as an S corporation, partnership or limited liability corporation (LLC). You’re generally entitled to deduct the interest paid on the first $100,000 of that home-equity loan as mortgage interest (as an itemized deduction on your Schedule A).
You may have heard rumors or seen headlines about more-generous deductions available for your medical expenses.
’Tis the season for crooks to pose as IRS agents.
Last January, Congress voted to let businesses and taxpayers deduct donations for Asian-tsunami relief on their 2004 returns as long as they made the donation by Jan. 31, 2005.
Each year, Congress and the IRS throw a few new ingredients into the tax-return stew. Here are some key tax-law changes that will affect your 2005 business returns.
Sadly, the bonus depreciation rules have expired. That means you’re stuck with regular depreciation deductions under the Modified Accelerated Cost Recovery System (MACRS), which requires you to write off business equipment over several years. Don’t despair.