Tax Tip : Mortgage Interest In Another Name Can Be Deducted

May 17th, 2017

picInterest paid on a house titled in another person’s name can be deducted, the Tax Court rules.

A man lived in a house that was owned by a longtime friend.

He paid the mortgage and maintained the house, and he also became a co-borrower on the debt when the original mortgage was refinanced.

According to the Court, he could claim a deduction on his tax return for the mortgage interest he paid because he was also listed as a co-borrower on the mortgage for the property.

Let us know if you have any questions.

Tax Tip: Is Your 2013 Tax Refund Still Waiting For You?

April 13th, 2017

picThe IRS reminds taxpayers that unclaimed federal income tax refunds totaling more than $1 billion may be waiting for an estimated 1 million taxpayers who did not file a 2013 federal income tax return.

But time is running out. To claim this money, taxpayers must file a 2013 federal tax return by April 18, 2017.

If you filed an extension for 2013, you have a little more time, but don’t wait too long.

Please call us at 614-771-7700, if you have any questions.

Tax Tip: Sales and Use Tax Filing Deadline Reminder

April 3rd, 2017

picThis message is a reminder that the March, 2017 monthly sales and use tax returns are due April 24, 2017.

Taxpayers are required to file sales and use tax returns electronically via the Ohio Business Gateway at business.ohio.gov or through TeleFile by calling (800)697-0440.

Please visit their website at www.tax.ohio.gov or contact the Department at 1-888-405-4039 with any questions regarding sales and use tax.

Please call us as soon as possible, if you have any questions.

Tax Tip: Calls asking “Can you hear me now?”

March 28th, 2017

picYour phone rings and the caller ID shows a number you don’t know. You answer it anyway and hear, “Can you hear me now?” It’s a pre-recorded robocall – even though it sounds like a real person – and it’s illegal. We’ve heard from hundreds of people who have gotten calls like this.

For more info >

Please call us as soon as possible, if you have any questions.

Tax Tip: Most Risky Scams

March 20th, 2017

picScammers know how to design phony checks to make them look legitimate. In fact, the Council of Better Business Bureaus just released a list of the most “risky” scams, based on how likely people are to be targeted, how likely to lose money, and how much money they lost. Fake checks were number two.

Fake checks drive many types of scams – like those involving phony prize wins, fake jobs, mystery shoppers, online classified ad sales, and others. In a fake check scam, someone asks you to deposit a check – sometimes for several thousand dollars – and, when the funds seem to be available, wire the money to a third party.

The scammers always have a good story to explain the overpayment – they’re stuck out of the country, they need you to cover taxes or fees, you’ll need to buy supplies, or something else. But when the bank discovers you’ve deposited a bad check, the scammer already has the money, and you’re stuck paying the money back to the bank.

So don’t deposit a check and wire money or send money back in any way. Banks must make funds from deposited checks available within days, but uncovering a fake check can take them weeks. If a check you deposit bounces – even after it seemed to clear – you’re responsible for repaying the bank. Money orders and cashier’s checks can be counterfeited, too.

Tax Tip: Partnership & S Corporation Returns

March 6th, 2017

picThe due date for Partnership and S Corporation Returns is March 15, 2017. If you need more time, you can file Form 7004 with the IRS to request an automatic six-month extension.

If you want to elect S Corporation status for 2017, you must file Form 2553 with the IRS by March 15, 2017, otherwise the election will not go into effect until January 1, 2018.

If you need additional time to make 2016 contributions to your pension and/or profit sharing plans, filing an extension will give you an extra six months to fund the plans.

 

Tax Tip: Penalty Relief for IRA Rollover

February 24th, 2017

picA bank’s bad advice lets a woman off the hook on a botched IRA rollover.
She believed from talking with a worker at a bank where she invested her IRA
that she had 90 days to roll over the funds to an IRA at another financial institution.
She completed the rollover on the 70th day…10 days after the correct deadline.
In a private ruling, the Service relaxed the rules and granted her the additional time.

Nowadays, folks in this situation needn’t seek an IRS ruling for relief.
They can self-certify that they qualify for a waiver of the 60-day rule,
provided they meet certain conditions.

The late rollover must be for one of 11 reasons, such as bank error, death or serious illness of the account owner or family member, misplaced check or severe damage to one’s home. And the rollover must be completed within 30 days after the reason for failing to timely do it in the first place ceases.

 

Tax Tip: Better Business Bureau

February 21st, 2017

picColumbus, OH – Your BBB wants local businesses to beware of a new twist on a wire transfer scam that has popped up in neighboring states and could be headed toward Central Ohio. So far, landscaping, electrical and tree service contractors have been contacted in neighboring states.

Here are the reports BBB has received: A “customer” calls a landscaping, electrical or tree service contracting business claiming to be an out-of-state client who owns a local property. The “customer” offers to pay upfront with a credit card, but explains that another contractor for a different type of work has also been at the property but could not accept credit cards, so they were unable to pay them. They offer to pay you the amount for your work with some extra money, asking for you to pay the other contractor for them by wiring the money to them.

After processing the full amount on the card and wiring the money, businesses were contacted by the credit card company stating that the card was stolen and the charges were reversed, leaving the businesses out the wired money. Other businesses found that the card number was declined. The “customer” responded by asking them to try other credit card numbers they had on hand that were also most likely stolen.

BBB tips for avoiding this scam:

  • Be wary of anyone who is willing to pay you extra money, especially if they ask for you to wire money back to them or to a third-party. Receiving checks or other methods of over-payment is most likely a scam.
  • Do not be afraid to ask questions. If an out-of-town client who is not willing to meet you in person seems suspicious, they most likely are. Meeting the client beforehand face-to-face and doing a walk-through of the work that needs to be done is a good way to build trust on both ends.
  • Trust your gut in high pressure situations. It can be tempting to take a credit card upfront if someone is willing, but ask yourself “Why the rush?”, especially with a contracting job. A business’s comfort level is just as important as the consumer’s.
  • Talk it over. If a job seems strange, like a client asking you to pay one of their other contractors, talk it over with your colleagues or call your BBB at 614-486-6336 for assistance.

Business owners and consumers can visit BBB Scam Tracker to see which scams are near you