How to pay for those last-minute deductions. We’re down to the wire, kids. 2013 ends in less than 48 hours, so if you are going to claim some last-minute deductions, get busy! Some things to keep in mind:
- A credit card is as good as cash. Better, even, because if you incur a business expense before the end of the year, you have your credit card statement to prove it.
- If you mail a check for a business expense, the check needs to be in the mail and postmarked in 2013 to be a deductible 2013 expense. If it’s a big check, maybe you should spend a little extra to send it Certified Mail so you can document the postmark.
- If you receive a check in the mail, it’s taxable the day you receive it, even if you don’t deposit it.
- There is no “close is good enough” rule for cash basis taxpayers. Just because you could have paid a bill doesn’t get you a deduction if you didn’t pay it before year-end.
- Don’t overdo it. If you prepay expenses more than a year out, you don’t get the deduction until the year to which the payment applies.
- If you are making a gift to a loved one to qualify for the $14,000 annual gift tax exclusion, having the check in the mail isn’t good enough. A check has to be cashed for the gift to count against this year’s exclusion.
And in case you didn’t check in over the weekend:
Check in tomorrow for the last 2013 year-end tax tip!
Reitz is one of Hollywood’s new financiers. Just about every major movie filmed on location gets a tax incentive, and Reitz is part of an expanding web of brokers, tax attorneys, financial planners and consultants who help filmmakers exploit the patchwork of state programs to attract film and TV production.
In his case, he takes the tax credits given to Hollywood studios for location filming and sells them to wealthy Georgians looking to shave their tax bills — doctors, pro athletes, seafood suppliers, beer distributors and the like.
Money for Hollywood, fixers, middlemen, and the well-connected, at your expense. Sort of like every other “economic development” tax credit, only even more so. Fortunately Iowa, sadder but wiser, has turned to jailing film folks instead of subsidizing them.
Russ Fox, Bring Me the Usual Suspects: Small Business Policy Index 2013. Iowa is 43rd. Not surprising, when “Of the 47 measures included in the 2013 edition of the Index, 22 are taxes or tax related…”
William Perez looks at the Top Tax News Stories of 2013. His top story took place on the first day of 2013:
1. American Taxpayer Relief Act was passed on January 1, 2013. This tax law instituted at top personal tax rate of 39.6%, bumped up the top capital gains rate to 20%, provided for indexing the alternative minimum tax to inflation, reinstated the phaseouts on itemized deductions and personal exemptions. This law was Congress’s way of dealing with the fiscal-cliff, which was the name applied to the expiration of a several tax laws first enacted during the Bush administration.
I hope nothing so awful happens on the last day of the year.
Robert D. Flach also looks back with 2013: THE YEAR IN TAXES – PART TWO
“Despite running a significant organization with over 92,000 employees that collects over $2.2 trillion of revenue and affects the lives of most people in the U.S., it doesn’t seem to me that anyone really cares about who is running the IRS.”
That’s unfortunate. As the tax law has become the Swiss Army Knife of public policy, the Commissioner oversees a sprawling portfolio ranging from health policy to campaign finance to industrial policy. There’s more power in the IRS than in most cabinet agencies. And as the disastrous regime of Doug Shulman proved, an awful Commissioner can cause a lot of damage to taxpayers and to the agency.
Jim Maule, Contracting a Tax Outcome. “When a taxpayer signs a contract, the terms of that contract quite often dictate the tax consequence.”
What could go wrong? French High Court OKs 75 Percent Tax For Top Earners (Iowa Public Radio)
Tony Nitti, A Tax On Cycling: Too Steep A Hill To Climb Or Just Around The Corner? With talk of replacing gas taxes with mileage charges based, presumably, on tracking your whereabouts, it’s not surprising that they want to tax any alternatives to cars.
TaxProf, The IRS Scandal, Day 235
That’s the only way the team overachieved. St. Louis Rams say they collected too much ticket sales tax (Kay Bell)
TaxGrrrl takes a look at Mr. Game’s tax claims in Game Offers Tax Advice To Rappers: Write Off Strippers, Sneaks And Medical Marijuana:
Next, those Jordans. Clothing is deductible if the only purpose of the clothing/uniform is for business purposes (meaning that you must wear them as a condition of employment) and not suitable for everyday use. Clothing is not deductible if you could wear it outside of your workplace (even if you don’t). Those Jordans? Not merely for business purposes. And Game would totally wear them outside of business.
In case you’re wondering, rappers are not required to take any tax continuing education.
Tags: 2013 year-end tax tips, Annette Nellen, Anthony Nitti, corporate welfare, economic development, film credits, harold hill, Iowa Public Radio, Jack Townsend, Kay Bell, Robert D Flach, Russ Fox, TaxGrrrl, TaxProf