News and Posts

Many businesses host a picnic for employees in the summer. It’s a fun activity for your staff and you may be able to take a larger deduction for the cost than you would on other meal and entertainment expenses. Deduction limits Generally, businesses are limited to deducting 50% of allowable meal and entertainment expenses. But certain expenses are 100% deductible, including expenses: For recreational or [...]

With health care costs continuing to climb, tax-friendly ways to pay for these expenses are more attractive than ever. Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs) and Health Reimbursement Accounts (HRAs) all provide opportunities for tax-advantaged funding of health care expenses. But what’s the difference between these three accounts? Here’s an overview: HSA. If you’re covered by a qualified high-deductible health plan (HDHP), you [...]

Are you thinking about turning a business trip into a family vacation this summer? This can be a great way to fund a portion of your vacation costs. But if you’re not careful, you could lose the tax benefits of business travel. Reasonable and necessary - Generally, if the primary purpose of your trip is business, expenses directly attributable to business will be deductible (or [...]

Harrisburg, PA - The Pennsylvania Department of Revenue today announced the launch of a new Personal Income Tax Fraud Investigation Unit dedicated to assisting victims of identity theft and combating tax refund fraud, two crimes on the rise. “The department understands that identity theft is frustrating for victims, which is made worse when a fraudulent tax return is filed in their name,” said Revenue Secretary Eileen [...]

Now that the April 18 income tax filing deadline has passed, it may be tempting to set aside any thought of taxes until year end is approaching. But don’t succumb. For maximum tax savings, now is the time to start tax planning for 2016.   More opportunities A tremendous number of variables affect your overall tax liability for the year. Starting to look at these [...]

If you suffer damage to your home or personal property, you may be able to deduct these “casualty” losses on your federal income tax return. A casualty is a sudden, unexpected or unusual event, such as a natural disaster (hurricane, tornado, flood, earthquake, etc.), fire, accident, theft or vandalism. A casualty loss doesn’t include losses from normal wear and tear or progressive deterioration from age [...]

The short answer is: none. You need to hold on to all of your 2015 tax records for now. But this is a great time to take a look at your records for previous tax years and determine what you can purge.   The 3-year rule At minimum, keep tax records for as long as the IRS has the ability to audit your return or [...]

Yes, the federal income tax filing deadline is slightly later than usual this year — April 18 — but it’s now nearly upon us. So, if you haven’t filed your return yet, you may be thinking about an extension.   Extension deadlines Filing for an extension allows you to delay filing your return until the applicable extension deadline:  Individuals — October 17, 2016 Trusts and [...]

Starting a new business is an exciting time. But before you even open the doors, you generally have to spend a lot of money. You may have to train workers and pay for rent, utilities, marketing and more. Entrepreneurs are often unaware that many expenses incurred by start-ups can’t be deducted right away. How expenses are handled on your tax return When planning a new [...]

Tax credits reduce tax liability dollar-for-dollar, making them particularly valuable. Two valuable credits are especially for small businesses that offer certain employee benefits. Can you claim one — or both — of them on your 2015 return? Retirement plan credit Small employers (generally those with 100 or fewer employees) that create a retirement plan may be eligible for a $500 credit per year for three [...]

When it comes to deducting charitable gifts, all donations are not created equal. As you file your 2015 return and plan your charitable giving for 2016, it’s important to keep in mind the available deduction: Cash. This includes not just actual cash but gifts made by check, credit card or payroll deduction. You may deduct 100%. Ordinary-income property. Examples include stocks and bonds held one [...]

To max out your education-related breaks, you need to see which ones you’re eligible for and then claim the one(s) that will provide the greatest benefit. In most cases you can take only one break per student, and, for some breaks, only one per tax return.   Credits vs. deductions Tax credits can be especially valuable because they reduce taxes dollar-for-dollar; deductions reduce only the [...]

Today it’s becoming more common to work from home. But just because you have a home office space doesn’t mean you can deduct expenses associated with it. Eligibility requirements If you’re an employee, your use of your home office must be for your employer’s convenience, not just your own. If you’re self-employed, generally your home office must be your principal place of business, though there [...]

Recently, Morison Cogen LLP underwent it's routine PCAOB (Public Company Accounting Oversight Board) inspection. The PCAOB has rigorous standards. Its reviews are exacting and they predictably identify matters of concern in most audits. This year, however, the PCAOB’s review did not identify any deficiencies or matters of concern in Morison Cogen LLP’s auditing or accounting work. In addition, the PCAOB did not identify any quality [...]