Tax Tips

CPA services provided by Contryman Associates, P.C., Investment Adviser services are offered through Contryman Wealth Advisors

Crowe Horwath examines tax implications of a Trump presidency

Firm details proposed corporate, individual, international, and estate and gift taxation policies CHICAGO (Nov. 9, 2016) – Following a lengthy and contentious campaign season, the American public has elected Donald Trump as president of the United States. It remains to be seen whether President elect Trump will preside over significant tax reform, but according to the following summary […]


Beware Current IRS E-Services Phishing Scam

From AICPA It has come to our attention that a fraudulent email (see sample below) is being issued to tax preparers asking them to update their e-Services information. This email WAS NOT generated by the Internal Revenue Service. The links provided in the email are designed to capture e-Services usernames and passwords. If you engage […]


Sales Tax Exemption for Agricultural Repair Parts

Effective October 1, 2014, sales of all repair and replacement parts used to repair agricultural machinery and equipment used in commercial agriculture are exempt from sales and use taxes. The purchaser must issue to the seller a properly completed Nebraska Resale or Exempt Sale Certificate Form 13, Section B, exempt category 2, to exempt the purchase from tax. […]


Nebraska Legislative Changes

Often when we talk of tax law changes the focus is on Federal law. Periodically, there are changes on a state level that are important as well but may go un-noticed except to people like your tax professionals. We’d like to alert you to some 2013 Nebraska Legislative Changes that may benefit you. Some highlights […]


Newly revived “charitable IRA rollovers”: Time is running out for 2012 tax savings

The American Taxpayer Relief Act of 2012 (ATRA) revives for 2012 and 2013 the opportunity to make tax-free IRA distributions (up to $100,000 per year) for charitable purposes. If you’re age 70½ or older, you can make a direct contribution from your IRA to a qualified charitable organization without owing any income tax on the […]


Why businesses should consider purchasing vehicles before year end

Business-related purchases of new or used vehicles may be eligible for Section 179 expensing, and business-related purchases of new vehicles may be eligible for bonus depreciation. But Sec. 179 expensing limits are scheduled to go down in 2013, and bonus depreciation is scheduled to disappear. So you might benefit from purchasing business vehicles before year […]


2013 Standard Mileage Rates Up 1 Cent per Mile for Business, Medical and Moving

The Internal Revenue Service issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 56.5 cents per mile […]


Consider the tax implications if you’re awarded restricted stock

In recent years, restricted stock has become a popular form of incentive compensation for executives and other key employees. If you’re awarded restricted stock — stock that’s granted subject to a substantial risk of forfeiture — it’s important to understand the tax implications. Income recognition is normally deferred until the stock is no longer subject […]


Make the most of depreciation-related breaks while you can

Many businesses may benefit from purchasing assets by Dec. 31 to take advantage of depreciation-related deductions that are scheduled to either disappear or become less favorable in 2013: Bonus depreciation. For qualified assets acquired and placed in service through Dec. 31, 2012, this additional first-year depreciation allowance is, generally, 50%. Among the assets that qualify are […]


Need to hire? Consider veterans

Veterans provide a valuable labor pool, full of highly trained, hard-working team players with strong leadership skills. There’s also a tax incentive: The VOW to Hire Heroes Act of 2011 extended the Work Opportunity credit through 2012 for employers that hire qualified veterans. It also expanded the credit by: Doubling the maximum credit — to […]


How to verify that a charity is eligible to receive tax-deductible contributions

Donations to qualified charities are generally fully deductible, and they may be the easiest deductible expense to time to your tax advantage. After all, you control exactly when and how much you give. But before you donate, it’s critical to make sure the charity you’re considering is indeed a qualified charity — that it’s eligible […]


2012 may be the last year to use tax-free ESA funds for precollege expenses

Coverdell Education Savings Accounts (ESAs), like 529 savings plans, offer a tax-smart way to fund education expenses: Contributions aren’t deductible for federal purposes, but plan assets can grow tax-deferred Distributions used to pay qualified expenses (such as tuition, mandatory fees, books, equipment, supplies and, generally, room and board) are income-tax-free for federal purposes and may […]


Turning a business trip into a vacation

Bringing family or friends along on a business trip and extending your stay can be an excellent way to fund a portion of your vacation costs and save taxes. But if you’re not careful, you could lose the tax benefits. Generally, if the primary purpose of your trip is business, then expenses directly attributable to […]


Now’s the time for giving

For 2012, the gift and estate tax exemption is $5.12 million and the maximum gift and estate tax rate is 35%. Absent additional legislation, for 2013 the exemption will drop to $1 million and the top tax rate will increase to 55%. It’s difficult to predict what Congress will do between now and then, so […]


Crop Insurance Strategies for 2012

With the near record drought facing the United States during this summer of 2012, there will be large payouts of crop insurance proceeds. We are writing to inform you of the special tax election and strategies related to any crop insurance proceeds that you may collect for your 2012 crop. Normally, crop insurance proceeds are […]


Planning for the new 2013 Medicare taxes on higher-level earned and investment income

The health care reform legislation enacted in 2010 included two additional, and potentially painful, taxes on what many refer to as “higher-income taxpayers”. The first tax is anadditional Medicare tax on taxpayers with earned income in excess of certain limits. The second tax is a new Medicare tax on investment income, commonly referred to as unearned income. Click […]


2013 Notice of Tax Changes

After a weekend of intense negotiations, the terms of a fiscal cliff resolution have finally been successfully negotiated. Early on January 1, 2013 the Senate and the House of Representatives passed the “American Taxpayer Relief Act”. The President is expected to quickly sign and enact the bill into law. Following are many tax changes that […]


Tax Credits for Energy-Efficient Home Improvements

If fluctuating energy costs and environmental concerns have you looking for ways to go green, the following energy-efficient home improvement credits may help. Making certain energy efficiency improvements to your home may also help lower your tax bill. $500 Credit for Basic Energy-Saving Improvements There are two different tax credits for energy-saving home improvements. The […]


End of the First-Year Depreciation Incentives?

Due to the recession, Congress dramatically increased tax incentives for businesses that expend amounts for capital equipment and certain building improvements. The long-standing Section 179 deduction was expanded to the current rate of $500,000 per year. Similarly, Congress added an incentive in the form of 100% bonus depreciation for many new (rather than used) asset […]


Early Tax Planning for 2011

Short-term Tax Planning Strategies that May Help You Save on Your Taxes No one knows what future tax rates, deductions, and credits will be, so how can we help you develop a plan to minimize your federal income taxes when there are so many uncertainties? Last December Congress approved several short-term tax breaks. Contryman professionals […]


2010 TAX RELIEF ACT EXTENDS BUSH-ERA TAX CUTS & OTHER TAX BREAKS, INCLUDES STIMULUS MEASURES

Congress has approved and President Obama is expected to quickly sign the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the 2010 Tax Relief Act). The 2010 Tax Relief Act extends for two years the Bush-era tax cuts, provides significant estate tax relief, and includes a two-year AMT “patch.” It also contains […]


Estate Planning

With changes to federal estate tax laws expected soon Federal estate taxes and inheritance taxes can be devastating to small businesses, farmers and moderately well-off families, to name a few. However, with proper planning those taxes can be eliminated, or at least effectively managed. Additionally, a good estate plan will provide for goals to be […]


TAX CHANGES AFFECTING INDIVIDUALS IN THE HEALTH REFORM LEGISLATION

This newsletter will give you a brief overview of the key tax changes affecting individuals in the recently enacted health reform legislation. Please call our offices for details on how the new changes may affect your specific situation. Individual mandate. The new law contains an “individual mandate”—a requirement that U.S. citizens and legal residents have qualifying […]


Payroll Tax Cut in the 2010 Tax Relief Act

The biggest new tax break for individuals in the recently enacted “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010” is the one-year payroll tax reduction. Under this new provision, which is intended to supplement income and boost economic growth, the payroll tax—which funds Social Security—will be cut by two percentage points during […]


Reinstatement of the Estate Tax in the 2010 Tax Relief Act

Before the recently enacted “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010,” there was no estate tax for 2010, but some beneficiaries could have faced higher taxes because there were less favorable income tax basis rules. Also, under the prior law, estate and other transfer taxes were scheduled to rise substantially for […]