Archive for the 'Taxes' Category

Hot Savings – Reduce NJ SUI Rates in August

July 30th, 2015

NJ employers can reduce NJ SUI (unemployment rates) by making a voluntary payment. The deadline in August 25, 2015.

Executors and Trustees: Distribute by March 5, 2015 to reduce high estate & trust income taxes

January 27th, 2015

Distributions made by March 5, 2015 are a way to significantly lower the 2014 income tax for trusts and estates even though it will increase the individuals personal income tax. Deadline is March 5, 2015 to make that special election for 2014.

Hit by the NJ Exit Tax on Sale of Real Estate? You Can Recoup Your Money

January 22nd, 2015

Hit by NJ Exit Tax? Non-residents can recoup the withholding.

NJ Employers-Reduce Your Unemployment Tax Rates-August Deadline

July 29th, 2014

NJ Employers can Reduce their NJ Unemployment Rates by making a Voluntary Payment- the Deadline is August 19, 2014

Unreported Assets Overseas? The Clock is Ticking

May 29th, 2014

Owners of foreign bank accounts have until June 30, 2014 to file IRS Form 114- Foreign Bank Account Reporting (FBAR). Even if the bank account doesn’t generate income, just owning it or having signature authority requires you to file the FBAR.

Hit by the NJ Exit Tax for Selling Real Estate? Recover Your Money Quickly

October 31st, 2013

If you’re a non-resident selling investment real estate in New Jersey, there’s a unique NJ tax you should be aware of. Both residents and non-residents always had to pay income tax on the gain upon the sale of real estate. This tax is required to be withheld for non-residents. The “Exit Tax”, which came into law six years ago, requires the seller to file a GIT/REP form (Gross Income Tax form) in order to record a Deed for the transfer of his property. When a non-resident sells the property, New Jersey will withhold this income tax in the amount of either 8.97 percent of the profit or 2 percent of the total selling price, whichever is higher. Therefore, even if the property is sold at a loss, tax must be withheld to fulfill the two percent requirement.

It’s important to realize that while the Exit Tax requires a substantial withholding, it doesn’t have any impact on the tax liability. If a taxpayer has excess withholding it would be prudent to file Form NJ1040 (individual) or NJ1041 (estate) quickly to expedite the recovery of the excess withholding.

Are you in Business or is it Just a Hobby?

July 9th, 2013

Whether an activity is classified as a business or a hobby can make a significant difference when it comes to taxes. Hobby losses are subject to “hobby loss rules”, under which the deductible expenses are limited to the amount of income generated by the activity. Even the expenses that can be deducted are subject to a 2% of adjusted gross income (AGI) floor. Deductions from business activity income, however, may exceed income and are fully deductible.

IRS Offers New Simplified Option for ‘Office in the Home’ Deduction

July 3rd, 2013

Beginning 2013, the Internal Revenue Service is offering a simplified method that many owners of home-based businesses and some home-based workers may use to figure their deductions for the business use of their homes.

Supreme Court Decision Impacts Same-Sex Couples

June 28th, 2013

The Supreme Court’s ruling that a key component of the Defense of Marriage Act (DOMA) is unconstitutional was perceived by most as a victory for same-sex couples. The Court decided to leave the definition of a “marriage” to the States, 12 of which currently permit same-sex marriages. Same-sex couples living in one of those states will now be entitled to the same federal benefits as traditional couples. The 12 states include NY and all of the New England states, MD and DE. This has many far-reaching implications.

Hurricane Sandy Repairs Subject to NJ Sales Tax?

June 10th, 2013

After Hurricane Sandy hit, the NJ Division of Taxation was flooded (no pun intended) with inquiries regarding the taxability of repairs. As a result, a helpful “Sales and Use Tax – Frequently Asked Questions” page has been added to its website. This article has the answers, including whether charges for demolition services or tree removal are subject to tax.

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