William D. Morris, E.A. 203

What’s up with the new IRS letters asking about your 1099-K’s ?

December 26, 2017 William D. Morris News Form 1099-K reports credit card sales to the IRS and also gives the IRS another audit weapon. The rules have now been around long enough to appear in court cases, the last of which prompted me to write this post.

Should children use IRA’s to pay for college? What about the kiddie tax?

December 26, 2017 William D. Morris Kiddie Tax When it comes to college planning, our lawmakers created some real traps. One big trap is the kiddie tax. This insidious tax destroys the traditional IRA as a college funding source and does much the same to your child’s interest and dividends savings. There’s much to know here. For example, consider the three questions and answers below: Question 1.

Do you have your 2018 expensing in place?

December 25, 2017 William D. Morris News For 2018, you can elect the de minimis safe harbor to expense assets costing $2,500 or less ($5,000 with audited financial statements or something similar). The term “safe harbor” means that the IRS will accept your expensing of the qualified assets if you properly abided by the rules of the safe harbor.