Tax and Business Alert - April 2015



Welcome to this month's edition of the Tax and Business Alert. Our goal is to provide you with current articles on various tax and business topics. The articles are intended to keep you up to date on trends and issues that may impact your business and personal financial affairs. Please contact us if you have questions about any of the issues discussed.

CONTEMPORANEOUS RECORDKEEPING KEY TO AVOIDING LOSS LIMITATIONS
Taxpayers who run up tax losses in a business must be prepared to prove that one of the material participation tests was passed to avoid having the losses characterized as a passive activity loss (PAL) that cannot be currently deducted. In general, an individual taxpayer can meet the material participation standard by passing one of seven tests outlined in the regulations and described in this article. Read more...

SPECIAL RULES FOR INHERITED IRAS
Normally, retirement plan distributions made to a nonspouse beneficiary after the account owner's death are taxable at the time they are received and cannot be rolled over to the beneficiary's own IRA. However, employer-sponsored retirement plans are required to offer nonspouse beneficiaries the option to roll over inherited amounts tax-free in a direct rollover to an inherited IRA. This article lists the special rules that apply to an inherited IRA. Read more...

AVOID GIFT TREATMENT BY PAYING EXPENSES DIRECTLY
It may seem easy to give money to relatives for educational or medical purposes, but doing so can result in a tax hit. This article explains why it's important to make any payment directly to the organization or service provider. Read more...

TAX CALENDAR
This article mentions a couple of important tax deadlines for April and June. Read more...

SEPS - ONE LAST CHANCE TO LOWER YOUR 2014 TAX BILL
Simplified Employee Pension (SEP) plans are available to self-employed individuals, partnerships (including multimember LLCs treated as partnerships), and corporate employers alike. Unlike other types of retirement plans, a newly formed SEP is easy to establish and a powerful retroactive tax planning tool. This article discusses how a SEP works and the requirements involved in forming one. Read more...

WHAT LANDLORDS SHOULD KNOW ABOUT RENTAL INCOME AND EXPENSES
Accounting for rental income might at first seem like a simple concept, but in practice it may not be so simple. What is the difference between "rental income" and "advance rent"? How does one account for a security deposit, or property or services received in lieu of rent? How is personal use of a vacation home or other rental property treated? This article addresses those questions. Read more...

This publication is distributed with the understanding that the author, publisher and distributor are not rendering legal, accounting or other professional advice or opinions on specific facts or matters, and, accordingly, assume no liability whatsoever in connection with its use. The information contained in this newsletter was not intended or written to be used and cannot be used for the purpose of (1) avoiding tax-related penalties prescribed by the Internal Revenue Code or (2) promoting or marketing any tax-related matter addressed herein. © 2015