Tax Credit

Tax Treatment Of Lease Terms Part 2: Tenant Allowances

Tenant construction allowances are a common detail in commercial real estate leases. Because landlords need tenants to fill their commercial spaces, and tenants need to customize these spaces for their business, a tenant allowance is a vital lease term which significantly pushes forward and finalizes a commercial real estate leasing transaction. An allowance must be structured accordingly to avoid undesired tax consequences.

I.R.C. § 110 provides landlords and tenants with a safe harbor which ensures that a tenant is not required to recognize income for a tenant allowance in leases which are for 15 years or less of a retail space. Otherwise, the tenant treats a tenant allowance received from the landlord as ordinary income, while depreciating assets over their useful life, typically resulting in much more income than expenses.

Start Your Year-End Tax Saving Moves Now – Here’s How Part 2

It’s already fall and before you know it, another year wil be upon us. It’s never too early to plan ahead to minimze your tax bill. An experienced and knowledgeable tax professional can help any individual or business make the right year-end savings moves with important advice and assistance. Here is the second part of a two-part series on some things to ponder when considering potential tax moves between now and the end of 2016:

  1. Accelerate deductions

Start Your Year-End Tax Saving Moves Now – Here’s How Part 1

It’s already fall and before you know it, another year will be upon us. It’s never too early to plan ahead to minimize your tax bill. An experienced and knowledgeable tax professional can help any individual or business make the right year-end savings moves with important advice and assistance. Here is the first part of a two part series on some things to ponder when considering potential tax moves between now and the end of 2016:

  1. Make time to plan

A Discussion Of New York State Income Tax Credits

Individuals and businesses in the State of New York are both subject to income tax. New York enacted a sweeping tax-reduction bill in 2011, creating the lowest mid-bracket tax rates in the state in 58 years. These tax breaks affected over four million taxpayers. Despite this legislation and other New York tax breaks, New York still has one of the highest state income tax rates in the nation.

New York Personal Income Tax

Finally! Congress Enacts Tax Extends Part 5

The Consolidated Appropriations Act of 2016, enacted Dec. 18, 2015, extends a long list of expired tax provisions into the future. Unlike past extension legislation, Congress extended many provisions permanently. In more traditional fashion, some of the others were extended for five years, and many for two years. The Joint Committee on Taxation estimates that the total cost of the tax provisions in the bill will be $622 billion over 10 years. Without Congress extending these various provisions, millions of Americans were in danger of losing these beneficial tax breaks by 2017.

Here are some provisions for individual taxpayers that were extended by Congress for two years:

Claiming Summer Camp Expenses On Your Tax Returns

Keeping children busy and entertained during the summer months when school is out is no easy task for parents. One alternative is sending the youngsters to summer camp, which is typically not a small expense. However, tClaiming Summer Camp Expenses On Your Tax Returns

During the school year, working parents have the luxury of not having to find someone to care for their younger children during normal school hours. In this case, children only need care during the hours between the time school ends and when a parent arrives home from work, which may be two to three hours at the most. However, during the summer this changes when school end and parents must find day-long care for their children. Many parents send their kids to camp during the summer to solve this problem. Is there any tax relief for parents in this situation?

How Your Job Hunt Could Lower Your Taxes

For taxpayers seeking a new job in their same line of work, a tax deduction for some job search expenses may be available. First and foremost, these expenses must be related to a job search in a taxpayer’s current occupation, as expenses related to a search for a job in a new occupation may not be deducted. If an employer or third party provides reimbursement for the expense, it may not be deducted.

Here are some expenses that may be deducted:

  1. Employment and job placement agency fees;
  2. Costs of preparing, copying and mailing résumés to prospective employers;

Finally! Congress Enacts Tax Extends Part 4

The Consolidated Appropriations Act of 2016, enacted Dec. 18, 2015, extends a long list of expired tax provisions into the future. Unlike past extension legislation, Congress extended many provisions permanently. In more traditional fashion, some of the others were extended for five years, and many for two years. The Joint Committee on Taxation estimates that the total cost of the tax provisions in the bill will be $622 billion over 10 years. Without Congress extending these various provisions, millions of Americans were in danger of losing these beneficial tax breaks by 2017.

The following incentives for real ­estate investment have been made permanent:

The Most Overlooked Tax Deductions, Part 6

Many taxpayers overlook the long list of deductions that they may take when completing and filing their tax returns. The IRS has estimated that millions of taxpayers overpay their taxes each year mainly because they fail to avail themselves of all of the possible deductions. The tax professionals at the Thorgood Law Firm can help ensure that all taxpayers take advantage of any and all deductions that may apply to them. Here is the sixth part of our multi-part series of blogs on the most overlooked tax deductions:

COLLEGE TUITION & LOAN DEDUCTIONS

The American Opportunity Credit

Tax Benefits For Education Part 4

This is the fourth part of our multi-part series of blogs on tax benefits for education. Any present or former student should utilize the knowledge, experience and expertise of the tax professionals at the Thorgood Law Firm to ensure that they take advantage all the credits and deductions that the law allows for students of higher education.

Tax credits, deductions and savings plans offer taxpayers ways to reduce their expenses for higher education.

  • A tax credit may reduce the amount of potential income tax.
  • A deduction reduces the amount of income that is subject to tax, thus reducing the amount of tax paid.

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