Volume 12, March 2006

 

Certified Public Accountants

Fe         b 15th—last day for employees to file W-4s with employer.

Feb 28th—file copy  “A” of W2 with SSA.

Individuals

Corporations

Feb 28th—annual 1099 returns to report payments to recipients.

Mar 15th—Income Tax Returns  (1120, 1120S), for calendar year corporations or

Application for Extensions of 2004 returns mailed to IRS.

 

Note: The above due date may be different if filing electronically.

Tax Calendar

Feb and Mar 2005

 

According to IRS,

“Individual Tax returns for the year 2002 were 130.1 million, reporting $6.0 trillion of AGI”

 

 

 

 

“The total number of partnerships increased to 2.24 million, but net income decreased to $270.7 billion.

 

 

 

“Nonprofit charitable organizations held over $1.6 trillion in assets and filed over 240,000 information returns for Tax Year 2001.

 

mycpa@phcpa.net

visit us @ www.phcpa.net

Tel: (727) 786-8228 Fax: (727) 789-2021

1202 Nebraska Ave, Palm Harbor, FL-34683

Text Box: Edward C. LaBrecque CPA, MBA
Text Box: LaBrecque & Company, CPA’s

Money Taxes & You

For more information check with your financial adviser. OR

email us with a question

 

 

Individuals

Apr. 17th—Income Tax and Self Employment tax returns of individuals for calendar year 2005.

Last day for calendar-year individuals to file application (Form 4868) for automatic four-month extension to file 2005 income tax return.

 

Partnership & Corporations

Mar. 15th—Due date for 2005 tax return (Form 1120 or Form 1120A) for calendar- year corporations 

Due date of 2005 income tax return for calendar-year corporation (Form 1120S).

Apr. 17th—Last day for filing income tax return (Form 1065) for calendar year 2005.

Tax Calendar

Mar. & Apr. 2006

 

Note: The above due dates may be different if filing electronically.

 

 

 

 

 

 

 

Current Mortgage Rate

(This week of Feb. 06’)

30-yr fixed mtg.    5.79%

15-yr fixed mtg.     5.44%

 

(The week of Feb. 06’)

30-yr fixed mtg.    5.82%

15-yr fixed mtg.     5.42%

 

 

There are two easy and convenient options for obtaining copies of your prior year’s tax return information by phone or by mail.  A taxpayer can request a tax return transcript which shows most line items from the tax return as it was originally filed including any accompanying forms and schedules.  A return transcript will meet the requirements of most lending institutions.  A taxpayer may also request an account transcript which shows any later changes to the return made either by you or the IRS.  These transcripts are provided to taxpayers free by calling 1-800-829-1040 or by completing and mailing form 4506-T, Request for Transcript of Tax Return to the address on the form.

This year, taxpayers in every state except Maine, Maryland, Massachusetts, New Hampshire, New York, Vermont and the District of Columbia have until midnight April 17, 2006, to file their individual income tax returns for 2005 because April 15 falls on a Saturday rather than a weekday.  Lucky yet again are residents of the above six eastern states and the District of Columbia because their filing date has been extended until midnight April 18, 2006, because April 17th is Patriot’s Day in these states — a state holiday.

Need a Reason to Celebrate Next New Year’s Eve?

Need a Copy of a Prior Year Tax Return?

Taxpayers must include in their gross income all amounts received as rent on residential property owned and leased to tenants.  Rental income is any payment received for the use of the property.  Expenses of renting the property such as property management fees, commissions, repairs, maintenance, insurance, homeowner dues, real estate taxes and mortgage interest can be deducted from the property’s gross rental income.  Both the gross rental income and expenses of renting are included on Schedule E of Form 1040.  Do not include in gross income advance rents or security deposits.

Hidden Rental Income on Residential Real Estate

Hidden rental income on residential real estate that many times is not reported includes expenses paid by the tenant and deducted from the monthly rent or tenant provided services such as repairs to the property in lieu of a rent payment.  Both tenant expenses and the fair market value of services provided must be included when reporting rental income. The tenant paid expenses or services provided can be deducted as  a cost of renting if they qualify as the property’s expense.

your next raise, the end of your car or boat payments, a bonus, a big commission check or until little Sally finishes college.  Pay yourself now — you’ll thank yourself later, like, say, New Year’s Eve.  While others are “counting” their blessings you can also be “counting” the balance in your new retirement savings account.

Did You Know…..

How about that this year you took responsibility for your own retirement by setting a savings goal for the remainder of this year and reaching that goal on December 31, 2006!

Don’t procrastinate or use as your alibi for having saved nothing this year that you couldn’t decide what plan to use or investment to purchase.  It doesn’t matter if the money goes into a 401(k) plan, a Roth IRA, a plain IRA, an old-fashioned savings account, bonds or whatever.  What matters is that you get started today.  Don’t wait for

The sale of a business is not usually the sale of a single asset but rather the sale of all or multiple assets.  For tax purposes, each asset involved in the sale is treated as being sold separately for determining the taxable gain or loss.

The assets included in the sale must be classified as capital assets, depreciable property used in business, real property or property held for sale to customers such as inventory.  The sale of capital assets results in a capital gain or loss.  The sale of inventory results in ordinary income or loss.  The sale of land or depreciable property can be treated in many different ways under the tax law.

However, both the buyer and seller are required to report the allocation of the sale price among the business assets to the IRS using Form 8594, Asset Acquisition Statement Under Section 1060.  This form should be attached to both the buyer’s and seller’s federal income tax return in the year that the transaction occurred.

Selling a Business

We are an authorized e-file provider. Though we have been asked to provide this service on a few occasions, most of our clients seem to continue to paper file their returns. At the present, 2005 paper filings requesting a refund are taking the IRS about three weeks to respond with a direct deposit to the taxpayer’s bank account. Taxpayer’s requesting a refund by check require about another ten days. E-filing does speed up the refund response and we would be pleased to assist any taxpayer who want to file using e-file.