Erock CPA Tax Tips – IRS Form 2106 Unreimbursed Business Expenses

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Tax Tips from Stu Steinberg – CPA, National Speaker & Financial Advisor

“Celebrating 25 Years in the Business”

IRS Form 2016 is used if you have expenses that you incur while working as an employee of a firm and you do not get reimbursed by your employer for these expenses.  These unreimbursed expenses can include auto and truck expense, unreimbursed business or office supplies, education, if needed to maintain your career, and business use of your telephone or computer.  There are complicated rules for employees who work out of their homes as well, so please seek competent advice when filing.  Once all expenses have been totaled, you still need to exceed a floor of 2% of your adjusted income before you can take any of these expenses as deductions.  Also, you may have these expenses limited by the alternative minimum tax (AMT) but that’s a story for a different blog!

About Stu: With more than 25 years of experience as a credentialed tax professional, Stu Steinberg brings a broad depth of knowledge to his work. Stu founded Erock Tax to help provide tax strategies to individuals, families and small businesses. He uses his CPA expertise to help each client navigate their long-term debt and mortgage, gaining them the best deals and rates possible. Stu is passionate about empowering his clients through education about their tax health. He is highly energetic and brings a sense of optimism, creative problem-solving and a deep level of commitment to every Erock client.

 

Taxes: Raising Revenue by Limiting Tax Deductions

DeductionIn the never ending battle over taxes, President Obama is lobbying for a 28% limit on some of the deductions we can take on our personal tax returns.  These changes would be in addition to the changes that took effect with the hastily passed bill that Congress approved in the 11th hour on January 1, 2013. 

A few issues are at play here.  First, many feel that taxes have risen enough on individuals and therefore, no additional tax hikes should be enacted.  Some feel the “carried interest” rule, the rule that allows an investor such as “the wealthy” to pay tax on their unearned income at a very low rate. A mere 15% instead of 39.6%, this needs to be adjusted so an investor such as “the wealthy” pays their fair share.  Still, others feel that it’s time to go after American corporations, 25+% of which pay NO income tax, and the many other domestic corporations who stash their money overseas to avoid paying tax at the domestic rate of 35%

But President Obama and the Democratic Congress don’t want to stop there.  They are proposing changes to what individuals can deduct on their personal tax returns including mortgage interest, charitable contributions, IRA and 401(k) contributions, and deductions for state and local income taxes.  Most of these changes would affect those in the top bracket of 39.6%, or the so called 1% who have seen their taxes rise with the recent re-election of President Obama and the constant haggling between the White House and Republicans.

Herein lies the main problem:  Lobbying in Washington, DC is a multi-million dollar per year business.  The real estate lobby is pushing hard for no changes to the current rule which allows writing off interest on mortgages of up to $1 million; including interest on 2nd homes.  The real estate market is finally rebounding from the crisis of 2008, and any change here would risk growth in this very fragile market.  Lobbying by the 401(k) benefits industry claim that a 28% cap could severely impact retirement savings, and the charity lobby fears that the neediest communities will suffer drastically if families donate less to charity due to limited deductibility.

I am afraid this tax battle will never end, and no matter what happens, some people are going to get hurt by any change.  We should continue to attempt to better utilize current revenues while exploring the best way to close loopholes that exist in our archaic tax system.  Complete overhaul is impossible, but steps should be taken to modernize the system going forward.

Listen below as we review this topic with Win Damon on FM 106.1 WNBP and WNBP.com.  We review insightful tax and financial topics every Tuesday am at 8:20.

With more than 25 years of experience as a credentialed tax professional, Stu Steinberg brings a broad depth of knowledge to his work. Stu founded Erock Tax to help provide tax strategies to individuals, families and small businesses. He uses his CPA expertise to help each client navigate their long-term debt and mortgage, gaining them the best deals and rates possible. Stu is passionate about empowering his clients through education about their tax health. He is highly energetic and brings a sense of optimism, creative problem-solving and a deep level of commitment to every Erock client.

Erock CPA Tax Tips – Have you ever heard of a Positive Audit?

Audit Red stamp

Tax Tips from Stu Steinberg – CPA, National Speaker & Financial Advisor

“Celebrating 25 Years in the Business”

 Have you ever heard of a positive audit?

Don’t laugh. I’d like to ask you a question: Do you have the nagging feeling that you could be doing more to save on income taxes, but you don’t have the time or the knowledge to act? If you are thinking, yes…I do. I promise you, you are not alone. With a tax code as thick as several copies of “War and Peace,” finding tax answers is nearly impossible unless you have years of training, and more years to read the dense language. Bottom line… there may be many ways you could keep more of what you’re earning – tax credits, deductions, exemptions, etc. – but without the right guidance, you might never find them.  CPA’s, like myself, will give you the kind of audit that may actually save you money.

It is possible to learn those tax savings before or after April 15 and use them to save money on your taxes. Give me a call to set up a free “Anti-Audit.” Unlike other CPA’s that frequently charge as much as $300 per hour, I offer this service to you complimentary. You will receive an intensive one-hour analysis of your tax situation, complete with suggestions for reducing your tax burden and taking advantage of the ever-changing tax codes. I’ll crunch your tax numbers in advance, and present you with a written report. I then go over my recommendations step-by-step, in person. As I said, it is general practice for tax planners to charge as much as $300 per hour for this kind of information, and honestly, they don’t take kindly to me giving it out for free. So why do it? Because I want to build a relationship of trust with you and believe it is an investment in working with you on your financial-advising business. It’s a great opportunity for me to show you the kind of valuable service I provide. Your “Anti-Audit” can reveal ways to potentially keep more of what you earn through tax-wise investing.

25+ years of financial and tax experience.

Since 1988, I’ve been working with tax preparers, CPAs and other financial professionals. As a student of tax law, I know taxation, and I may know how to help you reduce your tax burden legally, sensibly and above board. There’s no magic to it, just knowledge, planning and common sense. Make an appointment anytime for your free “Anti-Audit. “ I’ll request copies of your financial, investment and income information, which will be secured and completely confidential. In a week or so, I’ll have an action plan that could potentially allow you to save big on taxes. How often can you expect that from an audit?

I look forward to speaking with you.

Stu Steinberg, CPA, MBA

Click below to hear Win Damon of WNBP FM 106.1 and I review this topic.  We have insightful tax and financial chats every Tuesday morning at 8:20.

P. S. April 15 isn’t too far away, so call (781) 247-5569 or email anytime lynne@erocktax.com soon and set up your free “Anti-Audit!”

With more than 25 years of experience as a credentialed tax professional, Stu Steinberg brings a broad depth of knowledge to his work. Stu founded Erock Tax to help provide tax strategies to individuals, families and small businesses. He uses his CPA expertise to help each client navigate their long-term debt and mortgage, gaining them the best deals and rates possible. Stu is passionate about empowering his clients through education about their tax health. He is highly energetic and brings a sense of optimism, creative problem-solving and a deep level of commitment to every Erock client.

 

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