1. IRS Form 8594 for Sale of Business

    Most businesses are made up of different types of assets, and those assets get different treatment for tax purposes. How those items are identified at the time of the sale/purchase can have a significant tax impact on both the buyer and the seller. A seller will, of course, want to designate items into classes that will yield a long-term capital gain on sale and thus provide the best tax result fr…Read More

  2. How Much You Can Contribute to Retirement Plans in 2015

    How much can I contribute to my IRA and 401(k) in 2015? The contribution limits for your 401(k) will be higher in 2015 than in 2014. The maximum you’ll be able to stash in a 401(k), 403(b), 457 or the federal government’s Thrift Savings Plan will increase by $500, to $18,000 in 2015. The catch-up contribution limit for anyone who turns 50 in 2015 will also increase, from $5,500 to $6,000 (for …Read More

  3. Why Real Estate Investors Should Marry a Realtor®

    http://www.edesignations.com/QA/Desirable.asp   By C. Anthony Phillips, CPA Member of the GRI State FacultyAssume you are a full-time REALTOR® (or someone who materially participates in a real property trade or business) and meet the eligibility tests. Also assume that you have an adjusted gross income of $155,000 and a $30,000 yearly rental real estate loss. Assume a non-REALTOR® beco…Read More

  4. S Corp Single Class of Stock – Traps to Avoid

    The Single Class of Stock Rules These restrictive rules are found in Internal Revenue Code Section (“§”) 1361. In particular, the final requirement of § 1361(b)(1)(D) states simply that a corporation making an S election can not have "more than 1 class of stock." This statement seems straightforward but, as with many issues in tax, it is not. For example, the next subsection, §1361(c)(4), p…Read More

  5. 2014 California Personal Tax Rates

    2014 tax year. Schedule X — Single, married/RDP filing separately If the taxable income is ----------------------------------------------------------------------- Over But not over Tax is Of amount over ----------------------------------------------------------------------- $0 $7,749 $0.00 plus 1.00% $0 ----------------------------------------------------------------------- $7,749 $18,371 $77.…Read More

  6. 2014 and 2015 HSA Contribution Limits

    If  you are a client of Jarus & Co you know that we are proactive CPA's who attempt to find all applicable deductions for our accounting clients. We love HSA accounts because they are effectively a loophole allowing certain taxpayers to deduct their "out of pocket" healthcare expense.  Typically these are not allowed as a deduction given few taxpayers have out of pocket healthcare expense ex…Read More

  7. Health Insurance Deduction for S Corporation Owners (2% Shareholders)

    The cost of health insurance premiums paid by a business is usually excluded from taxable income on the employee’s W-2.   However it should be noted that a 2% or more shareholder of an S corporation is not eligible for this exclusion!  However, the 2% shareholder can often deduct the cost of the premiums on his or her personal tax return (form 1040). So what is a 2% S Corp shareholder? The IRS…Read More

  8. Orange County California Manufacturing and R&D Equipment Exemption

    Overview Beginning on July 1, 2014, manufacturers and certain research and developers may qualify for a partial exemption of sales and use tax on certain manufacturing and research and development equipment purchases and leases. To be eligible for this partial exemption, you must meet all three of these conditions: Be engaged in certain types of business, also known as a “qualified person.” Pu…Read More

  9. Small Business Health Care Tax Credit Helps Orange County Businesses

    Regardless of how you feel about "Obamacare" we urge you to learn more about the Small Business Health Care Tax Credit if it can reduce your cost to provide coverage to the employees of your Orange County Business. Jarus & Co has been tracking the progress of healthcare reform in order to assist clients with taking full advantage of all available deductions. Small businesses with fewer than 50…Read More