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Copy and paste this link or search google to view non profit organizations approved by the IRS.  It's a great way to find organizations that align with your interests and can donate to those organizations.

https://apps.irs.gov/app/eos/

Very Important to know regarding New Tax Law

New IRS Sec 199A deduction for tax year 2018 small business. A simplified version of the deduction is 20% of your taxable income but it's a very complicated computation to get the deduction amount. But it's important for all Single Member LLC, Partnerships, and S Corp to know about the deduction. Here is some temporary information for you:

V. Impact of the Tax Cuts and Jobs Act of 2017
The Tax Cuts and Jobs Act (TCJA) replaced the domestic productions activity deduction (DPAD) of §199
with a new pass-through deduction, §199A. The impact of §199A should be considered in tax planning for
continuing operations and sales of a business. Section 199A also affects entity choice, both for new
entities and for existing entities.

A. The pass-through deduction (§199A)
1. Overview of §199A
a. The percentage: As a general rule, the deduction is equal to 20 percent of “qualified
business income,” subject to limitations.
b. Qualified Business Income (QBI): “QBI” is an acronym with which we will become as
familiar in the future as we have been with DPAD. The starting point of the §199A
deduction is to multiply the QBI of each qualified trade or business by 20 percent. So,
what is QBI?
(i) Qualified business income is defined by TCJA as the net amount of qualified
items of income, gain, deduction, and loss with respect to any qualified trade or
business of the taxpayer to the extent such items are --
• Effectively connected with the conduct of a trade or business within the
United States (within the meaning of §864(c), determined by substituting“qualified trade or business (within the meaning of §199A)” for
“nonresident alien individual or a foreign corporation” or for “a foreign
corporation” each place it appears); and
• Included or allowed in determining taxable income for the taxable year.144
For example, if the taxpayer purchases a depreciable asset during the year, the
QBI will be reduced by depreciation allowed during the year, not the purchase
price. Only income effectively connected to the United States under the
provisions of §864(c) is included. Income from sources within Puerto Rico counts
if the income is subject to the United States marginal tax rates.
(ii) Qualified business income does not include specific investment items.
Specifically, QBI excludes:
• Any item of short-term capital gain, short-term capital loss, long-term
capital gain, or long-term capital loss.
• Dividends, income equivalent to a dividend, or payments in lieu of
dividends.
• Interest income other than that which is properly allocable to a trade or
business.
• Excess gain over loss from commodities transactions not pertaining to a
trade or business.
• Excess of foreign currency gains over losses from §988 transactions not
directly related to the needs of the business.
• Net income from notional principal contracts other than clearly identified
hedging transactions that are treated as ordinary.
• Any amount received from an annuity that is not used in the trade or
business of the business activity.
• Qualified REIT distributions, qualified cooperative distributions, and
qualified publicly traded partnership income. They are included in the
calculation of the deduction, but not as part of qualified business
income.

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Small Business Help

MAX S WOODBURY CPA, LLC·FRIDAY, MAY 18, 2018

3 Reads

Business EIN’s allow you to seperate your business bank accounts from your personal bank accounts. This makes it easier to track your business expenses easier. EIN gives you as the taxpayer more privacy; EIN prevents you from sharing your Social Security Number. To get a Business EIN from the IRS fill out Form SS-4 and mail it to the IRS.

Another way to get an EIN for your business is to go to the following website and apply for the EIN online: https://sa.www4.irs.gov/modiein/individual/index.jsp ----Applying for an EIN online is quicker but sometimes the IRS website is down and its difficult to prove your identity because you need to give some information.

To close a business you fill out a BC-100 for the state of Indiana and you file a FINAL tax return for the year you closed the business.

Opening and closing a business is pretty straightforward. Running the business and keeping it open is more difficult and time consuming. QuickBooks help me run my business. I print 2 financial statements every Quarter. The profit/loss statement and the balance sheet. The profit/loss statement tells me what I have earned and what I have spent. I do my budget on this statement. The balance sheet shows me how much I have paid myself in Owner Draws and what my bank balance is currently. Everyone should be financially aware in regards to actual numbers and the budget numbers.

QuickBooks Online

MAX S WOODBURY CPA, LLC·TUESDAY, MAY 15, 20188 Reads

Try connecting your bank account to QBO(QuickBooks Online) before you begin posting checks or deposits manually. Connecting your bank account will save you time and hastle. To connect your bank account. From the “Dashboard” click “Connect Accounts” at the bottom right corner. From there follow the steps.

Posting Checks: Click “Expenses” then “New Transaction” drop down menu, Click “Checks.” You can create “Bill” before posting a check or click “Expense” to post a debit card transaction.

Posting Deposits: Click “Sales” then “New Transaction” drop down menu, Click “Sales Receipt.” If you know you will receive money at a later date and don’t want to forget to post it or want to post it early click “Delayed Charge” from the “New Transaction” drop down menu.

The goal when using QuickBooks is to post as much detail as possible if you want more information from the reports. Or post as little as possible and get it done faster and maybe you don’t need a vendor address list report or vendor phone number list report. Sometimes its best to keep it simple. Just post basic transactions so you can run the Profit/Loss Statement and the Balance Sheet. These are the only 2 reports you need to file your tax return. Other detail will allow you to get info such as Profit/Loss by Class. If you want to classify $5000 in rental income to 500 west property and $1000 rental income to 2234 drive property, you use by class to seperate the income and give you more detail.

QuickBooks Online Preferences

MAX S WOODBURY CPA, LLC·TUESDAY, MAY 15, 20188 Reads

Preferences are the options you can change inside of QuickBooks. To access preferences click on the gear icon in the upper right hand corner of the screen.

The preferences I encourage everyone to review: 1. Accounting Method cash or accrual 2. Chart of Accounts- Enable Account Numbers 3. Track Classes.

To change these 3 items A. Click the gear icon B. Click “Account and Settings” C. Click “Preferences.”

“Manage Users” in the gear icon allows you to add an accountant user or an employee user. Inside “Manage Users” you (the Admin) may add “New” user and limit user access as well as print reports showing the date and time the user accessed your QBO account. Very helpful.

“Chart of Accounts” is probably the most important preference in the gear icon. After clicking on “Chart of Accounts” you may add or delete accounts you want or don’t need. I recommend deleting Miscellaneous Account. Every transaction seems to be posted into this account. To edit all the accounts quickly, click the pencil icon. To import your Chart of Accounts into QBO from Excel, Click “New” drop down menu, click “Import.”

To Import or Export Vendor or Customer details such as address and phone numbers click the gear icon, then click “Import” or “Export” under Tools heading.

Common Deductions/Credits

Personal

1. Medical Expenses
1. Mileage
2. Prescriptions
3. Co-Pays
4. Doctor, Hospital
5. Dentist, Eye Doctor
6. Equipment
2. Real Estate Taxes Paid
3. Mortgage Interest Paid
4. PMI and Points Paid
5. Vehicle Excise Tax Paid
6. Donations Cash & Other
1. Mileage
7. Safe Deposit Box Fee
8. Investor Fees
9. Unreimbursed Employee Expense
10. Union Dues
11. Tax Preparation Fee
12. Child Care Paid
13. Student Loan Interest Paid
14. Educator Expenses Paid
15. Tradition IRA/401k/SEP contributions
16. Foreign Taxes Paid
17. College Tuition Paid
18. Rent Expense on Indiana State tax return
19. 529 plan contribution on Indiana State tax return
20. Indiana College Contribution on Indiana State tax return
21. Private School or Home School on Indiana State tax return
22. Military deductions

Business

1. Purchases
2. Labor paid
3. Advertising paid
4. Mileage
5. Cell phone
6. Rent paid
7. Interest Paid
8. Insurance Paid
9. Meals & Entertainment
10. Uniforms
11. Professional Fees
12. Office Supplies
13. Travel
14. Utillities
15. Self-Employed Health Insurance
16. Equipment/Depreciation
17. Wages
18. Payroll taxes
19. Repairs & Maintenance
20. Gifts
21. Continuing Education
22. Home Office

Proposed 2018 tax brackets

Married Filing Jointly Proposed Tax Brackets for tax year 2018:

Taxable income of $1million or more 39.6%
Taxable income between $260,000 and $1 million 35%
Taxable income between $90,000 and $260,000 25%
Taxable income below $90,000 12%

Key Provisions
Deduction for state and local income and sales taxes repealed
Property tax deduction capped
Mortgage interest deduction limited
Personal exemptions repealed
Estate tax reduced, then repealed in 2024
Alternative minimum tax repealed--This is amazing, so glad this is happening

Deductions

We don't recommend you go into debt for the interest deduction.  You are paying the bank to save from paying the IRS.

May 15th Deadline

Personal Property Tax returns are due May 15th for those of you who have a small business.  Make a list of all the equipment you own purchased for more than $2,500.  If all your equipment adds up to less than $20,000, you can file an exemption.  All others must file form 103 or 104.

April 18th Deadline

Drop off your tax paperwork and let us answer some questions.

March 15th Deadline

1065, 1120-S, and 1120 business tax returns are due.  Get them to your tax preparer as soon as you can.

Hello!

 Max S Woodbury CPA LLC is now on Nextdoor, the private social network for neighborhoods. Would you recommend us to your neighbors and help get the word out?
Recommend us: https://nextdoor.com/pages/max-s-woodbury-cpa-llc-franklin-in/recommend/
Thanks for being a  Max S Woodbury CPA LLC customer! We appreciate the support you provide to our local business.

 --Max Woodbury, Max S Woodbury CPA LLC

Dave Ramsey advice on Small Business Taxes

Click the link to find out some good ideas on what to do if you are struggling with taxes of any kind when you have a small business:
http://www.daveramsey.com/blog/focus-on-taxes-or-business-growth?ectid=10.20.6014

Dave Ramsey Article

Married? Pay Attention to These 4 Things at Tax Time

The day you walked down the aisle, you dreamed about all the things that come with happily ever after—from moonlit walks on the beach to his and hers hand towels. Now it’s time to share another time-honored marital tradition: filing taxes.

If this is your first tax season as husband and wife, here are four things that will be different this time around.

Your Personal Information

To make your first tax-filing as a couple as smooth as possible, you’ll need to take care of a couple of things first.

• If you moved, be sure to notify the IRS of your address change by filing IRS Form 8822.

• Report any name changes to the Social Security Administration so your name and Social Security number match on your tax forms. If they don’t, the IRS will hold your tax refund until you resolve the issue. Fill out form SS-5 and file it at your local Social Security office. If you don’t have time to change your name before the tax deadline, you can file with your husband using your maiden name. But make sure you take care of the name change by next year.

Don’t forget to let your employer know of any changes to your name and/or address so your W-2 arrives on time and in good order.

Your Tax Withholdings

Now that you have a new household income, be sure to adjust your tax withholdings. You can do that by completing a new W-4 form at work.

Remember, a big refund means you’re lending your money to Uncle Sam interest-free for a year. That’s a bad idea! Try to get your refund as close to zero as possible so your money makes it to your paycheck where it will do you the most good!

Your Filing Status

Filing as a couple isn’t much different than filing as an individual. Simply report your and your spouse’s incomes and deduct your combined allowable expenses. Most couples will find that filing jointly reduces their tax bills. Why? For one thing, you’ll qualify for additional tax benefits with a joint return.

Here’s another reason to consider. Let’s say you and your spouse file separately. If you make $40,000 a year while your spouse makes $32,000, you would end up in the 25% tax bracket and your spouse would be in the 15% tax bracket. By filing together, you both pay the 15% tax rate.

Keep in mind that couples with similar incomes in higher tax brackets could end up paying higher tax rates with a joint return, depending on the deductions and credits you qualify for.

Your Deductions

You and your spouse will also have to decide whether to itemize or take the standard deduction. The standard deduction for married couples filing jointly is $12,600 for the current tax year.

If your individual deductions add up to more than the standard deduction, you could benefit from the extra hassle of itemizing. Common deductions include property taxes, certain types of interest, medical expenses and charitable giving.

Eliminate First-Year Tax Jitters

Marriage changes everything, and change can be scary. But it doesn’t have to be. A qualified tax pro can take the stress out of tax season by working with you and your spouse to get your taxes done right.

If you’re looking for advice you can trust, we can put you in touch with a tax advisor Dave recommends in your area today.

IRS Summertime Tax Tip 2015-13

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Ten Key Tax Facts about Home Sales

In most cases, gains from sales are taxable. But did you know that if you sell your home, you may not have to pay taxes? Here are ten facts to keep in mind if you sell your home this year.

1. Exclusion of Gain.  You may be able to exclude part or all of the gain from the sale of your home. This rule may apply if you meet the eligibility test. Parts of the test involve your ownership and use of the home. You must have owned and used it as your main home for at least two out of the five years before the date of sale.
2. Exceptions May Apply.  There are exceptions to the ownership, use and other rules. One exception applies to persons with a disability. Another applies to certain members of the military. That rule includes certain government and Peace Corps workers. For more on this topic, see Publication 523, Selling Your Home.
3. Exclusion Limit.  The most gain you can exclude from tax is $250,000. This limit is $500,000 for joint returns. The Net Investment Income Tax will not apply to the excluded gain.
4. May Not Need to Report Sale.  If the gain is not taxable, you may not need to report the sale to the IRS on your tax return.
5. When You Must Report the Sale.  You must report the sale on your tax return if you can’t exclude all or part of the gain. You must report the sale if you choose not to claim the exclusion. That’s also true if you get Form 1099-S, Proceeds From Real Estate Transactions. If you report the sale, you should review the Questions and Answers on the Net Investment Income Tax on IRS.gov.
6. Exclusion Frequency Limit.  Generally, you may exclude the gain from the sale of your main home only once every two years. Some exceptions may apply to this rule.
7. Only a Main Home Qualifies.  If you own more than one home, you may only exclude the gain on the sale of your main home. Your main home usually is the home that you live in most of the time.
8. First-time Homebuyer Credit.  If you claimed the first-time homebuyer credit when you bought the home, special rules apply to the sale. For more on those rules, see Publication 523.
9. Home Sold at a Loss.  If you sell your main home at a loss, you can’t deduct the loss on your tax return.
10. Report Your Address Change.  After you sell your home and move, update your address with the IRS. To do this, file Form 8822, Change of Address. You can find the address to send it to in the form’s instructions on page two. If you purchase health insurance through theHealth Insurance Marketplace, you should also notify the Marketplace when you move out of the area covered by your current Marketplace plan.

Additional IRS Resources:

• Publication 5152: Report changes to the Marketplace as they happen English | Spanish

IRS YouTube Videos:

• Selling Your Home – English | Spanish | ASL
• Premium Tax Credit: Changes in Circumstances – English | Spanish |ASL
• Premium Tax Credit – English | Spanish | ASL

IRS Podcasts:

• Selling Your Home – English | Spanish
• Premium Tax Credit – English | Spanish

No Need to Wait Until Oct. 15 Extension Deadline to File

Oct. 15 is the last day to file 2014 tax returns for most people who requested an automatic six-month extension. However, you can file any time before Oct. 15 if you have all your required tax documents. If you are one of the nearly 13 million taxpayers who asked for more time to file your federal tax return this year, you don’t need to wait until Oct. 15 extension deadline to file your return. You can file now if you are ready. As you prepare to file, here are some things that you should know:

• Use IRS Free File.  Even though it is after April 15, nearly everyone can use e-file their tax return for free through IRS Free File. It does the math, checks to see if you qualify for tax breaks that you might miss, and it works best for those who are used to doing their own taxes. The program is available on IRS.gov now through Oct. 15. IRS e-file is easy, safe and the most accurate way to file your taxes. E-file also helps you get all the tax benefits that you’re entitled to claim.
• A Refund May be Waiting.  If you are due a refund, you should file as soon as possible to get it.
• Try Easy-to-Use Tools on IRS.gov.  Use the EITC Assistant to see if you’re eligible for the credit. Use the Interactive Tax Assistant tool to get answers to common tax questions, including new Health Care Law topics. Use these interactive tools to find out if you’re eligible to claim the premium tax credit, qualify for an exemption or if you must make a payment. 
• Use IRS Direct Pay.  If you owe taxes the best way to pay them is with IRS Direct Pay. It’s the simple, quick and free way to pay from your checking or savings account. Just click on the ‘Pay Your Tax Bill’ icon on the IRS home page.
• Understand the Health Care Law’s effect on your taxes. TheAffordable Care Act requires you, your spouse, and your dependents to have qualifying health insurance for the entire year, report a health coverage exemption, or make a payment when you file. If you purchased coverage through the Marketplace, you may be eligible for the premium tax credit and need to use Form 8962, Premium Tax Credit, to reconcile any advance payments made on your behalf. If you do not file a 2014 tax return you will not be eligible for advance payments or cost-sharing reductions to help pay for your Marketplace health insurance coverage in 2016. Filing as soon as possible, using your most current Form 1095-A, Health Insurance Marketplace Statement, will substantially increase your chances of avoiding a gap in receiving this help.    
• Missed Deadline? File as Soon as You Can. If you did not request an extension by April 15, you should file and pay as soon as you can anyway. This will stop the interest and penalties that you will owe. IRS Direct Pay offers you a free, secure and easy way to pay your tax directly from your checking or savings account. There is no penalty for filing a late return if you are due a refund. The sooner you file, the sooner you’ll get it.
• Don’t Forget the Oct. 15 Deadline.  If you aren’t ready to file yet, remember to file by Oct. 15 to avoid a late filing penalty. If you owe and can’t pay all of your taxes, pay as much as you can to reduce interest and penalties for late payment. Use the Online Payment Agreement tool to ask for more time to pay. In most cases, the failure-to-file penalty is 10 times more than the failure-to-pay penalty. So if you can’t pay in full, you should file your tax return as soon as you can and pay as much as you can.
• More Time for the Military.  Some people have more time to file. This includes members of the military and others serving in a combat zone. If this applies to you, you typically have until at least 180 days after you leave the combat zone to both file returns and pay any taxes due.

Additional IRS Resources:

• Where’s My Refund
• Make a payment – payment options
• IRS Tax Map
• Affordable Care Act Tax Provisions for Individuals and Families

IRS YouTube Videos:

• IRS Tax Payment Options – English | Spanish | ASL
• Online Payment Agreement – English | Spanish | ASL

IRS Podcasts:

• IRS Tax Payment Options – English | Spanish
• Online Payment Agreement – English | Spanish

Tax advice from the IRS summer 2015-08SP

In This Issue

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Five tax tips pastimes that generate income

Millions of people enjoy hobbies. These can also be a source of income. Some types of hobbies include stamp and coin collection, crafts and horse breeding. You must report on their income tax return you get from a hobby. How you report the income is different from how the report from a business. There are special rules and limits on deductions you can claim a hobby. Here are five tax tips you should know if you get income from a hobby:

1. Business or hobby. A key feature of a business is that you do it for profit. This differs from a hobby that you can do as a sport or recreation. You must consider nine factors (in English) and determine whether it is in this activity for profit. Be sure to make your determination based on facts and circumstances according to the situation. Watch and learn more with Publication 535 , Business Expenses (in English). You can also visit IRS.gov and write "non-for-profit" in the search box.
   
2. Allowable deductions hobby. You may deduct ordinary and necessary expenses pastime. An ordinary expense is one that is common and accepted for the activity. A necessary expense is one that is helpful and appropriate for the activity. See Publication 535 , Business Expenses (in English) for more information about these rules.
   
3. Spending limits. Generally, you can only deduct the cost of their hobby to the amount of their income pastime. If your expenses are more than your income, you have a loss of pastime. You can not deduct the loss from their other income.
   
4. How to deduct expenses. You must itemize deductions on your tax return in order to deduct hobby expenses. Your costs may be classified into three types of expenses. Special rules apply to each type. See Publication 535 to see how they are reported onSchedule A itemized deductions (in English). 
   
5. Use IRS Free File. The rules can be complex and hobbyIRS Free File you can make filing your taxes easier. IRS Free File is available until 15 October. If you earned $ 60,000 or less, you can use the tax software brands. If you earn more, you can use the forms to fill out Free File, the electronic version of IRS paper forms. Free File is available only through the website IRS.gov.

You can get Publication 535 (in English) in IRS.gov/formulariosat any time.

Additional Resources IRS:

• Business or Hobby? Answer implications deductions (in English)
• Publication 525 , Taxable Income and untaxed (in English)
• Publication 529 , Miscellaneous Deductions (in English)
• 17SP publication , The Federal Income Tax
• IRC Section 183 : Activities not engaged in profit (Technical Audit Guide) - Details of the factors for determining 'with' or 'not-for-profit' (in English)

IRS YouTube video:

• Welcome to Free File - Inglés

IRS Summertime Tax Tip 2015-09

Inside This Issue

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Keep Track of Miscellaneous Deductions

Miscellaneous deductions can cut taxes. These may include certain expenses you paid for in your work if you are an employee. You must itemize deductions when you file to claim these costs. So if you usually claim the standard deduction, think about itemizing instead. You might pay less tax if you itemize.  Here are some IRS tax tips you should know that may help you reduce your taxes:

Deductions Subject to the Limit.  You can deduct most miscellaneous costs only if their sum is more than two percent of your adjusted gross income. These include expenses such as:

• Unreimbursed employee expenses.
• Job search costs for a new job in the same line of work.
• Some work clothes and uniforms.
• Tools for your job.
• Union dues. • Work-related travel and transportation.
• The cost you paid to prepare your tax return. These fees include the cost you paid for tax preparation software. They also include any fee you paid for e-filing of your return.

Deductions Not Subject to the Limit.  Some deductions are not subject to the two percent limit. They include:

• Certain casualty and theft losses. In most cases, this rule applies to damaged or stolen property you held for investment.  This may include property such as stocks, bonds and works of art.
• Gambling losses up to the total of your gambling winnings.
• Losses from Ponzi-type investment schemes.

There are many expenses that you can’t deduct. For example, you can’t deduct personal living or family expenses. You claim allowable miscellaneous deductions on Schedule A, Itemized Deductions. For more about this topic seePublication 529, Miscellaneous Deductions. You can get it on IRS.gov/forms at any time.

Additional IRS Resources:

• Tax Topic 508 – Miscellaneous Expenses
• Interactive Tax Assistant tool – Can I Claim My Expenses as Miscellaneous Itemized Deductions on Schedule A (Form 1040)?

IRS YouTube Videos:

• Standard Versus Itemized Deductions - English | Spanish | ASL

IRS Podcasts:

• Standard Versus Itemized Deductions - English | Spanish

Wall Street Journal article- "No, That isn't the IRS Calling. Just Hang Up.

Phone calls by fraud artists posing as Internal Revenue Service employees and demanding money have surged in recent months.
The smart response if you get such a call: Just Hang Up. And if the scammer calls back, hang up again, say Eric Smith, a spokesman for the IRS, and Timothy Camus, an official with the Treasury Inspector General for Tax Administration, a government watch dog known as Tigta. "Often the scammer will move on," Mr. Camus says.
Next step: Report the incident to Tigta at 800-366-4484 or tigta.gov. Also contact the Federal Trade Commission through the FTC Complaint Assistant at FTC.gov, and add "IRS Telephone Scam" to the complaint comments.
The impostors often threaten to arrest the victim if he or she doesn't pay immediately using a prepaid debit card, Mr. Camus said in congressional testimony earlier this month. Other threats involve loss of a driver's license or business license.
The IRS never initiates contact with a taxpayer by phone, email or text message, messrs. Camus and Smith say. The IRS will never call about taxes owed without having first mailed a bill.  Nor will the agency require a taxpayer to use a specific payment method or ask for credit or debit card numbers over the phone. And unpaid taxes won't cause a driver's license to be revoked.
Between 9,000 and 12,000 complaints about such phone scams are filed each week with Tigta.  Since late 2013, some 3,000 victims have lost an average of $5,000, Mr. Camus said. -Laura Saunders