Records Retention
By Kenneth H. Bridges, CPA, PFS February 2016
“How long do I need to keep our old tax returns and related documents?” This is a question I get often; and it is a simple question for which there is no …
No Loss Carryforward in Computing Self-Employment Tax
By Kenneth H. Bridges, CPA, PFS July 2015
For income tax purposes, a net operating loss can be carried back 2 years or forward up to 20 years. While less than perfect, this provision tends to mostly smooth out the …
Preparing for an IRS Challenge Under the Hobby Loss Rules
By Kenneth H. Bridges, CPA, PFS July 2015
In order to be deductible as a business expense, an expense must be ordinary and necessary and be incurred in an activity engaged in for profit. Under the “hobby loss” rules, there …
Avoiding the 3.8% Medicare Tax on Net Investment Income
By Jacquelyn J. Brown, CPA July 2015
The Affordable Care Act included a new 3.8% Medicare tax on net investment income which first took effect for 2013. “Net investment income” for these purposes includes most interest, dividends, rents, royalties, capital …
Statewide Cap on Georgia Qualified Education Expense Credit Met
By Kenneth H. Bridges, CPA, PFS March 2015
Georgia has a tax credit program which permits individuals and businesses to receive a credit against their Georgia tax for contributions to qualified student scholarship organizations (SSOs). An SSO is a 501(c)(3) …
Bitcoin Taxation
By Kenneth H. Bridges, CPA, PFS March 2015
At Bridges & Dunn-Rankin, we have not yet started accepting bitcoin for payment of our fees, but it is estimated that over 80,000 businesses do now accept it.
Bitcoin is an online …
Buying or Selling Real Estate? Consider a 1031 Exchange
By Kenneth H. Bridges, CPA, PFS March 2015
Real estate has always received very favorable treatment under our tax laws. For your residence, you get to take deductions for the interest and taxes, and then, when you sell it at …
Could the Mayor of London Owe U.S. Tax on the Sale of Home in London?
By Kenneth H. Bridges, CPA, PFS December 2014
The U.S. has what is known as a “worldwide tax system” whereby it taxes its citizens and residents (including domestic corporations) on their worldwide income, from whatever source derived, and then permits …
IRS Says Members’ K-1 Income Subject to Self-Employment Tax
By Kenneth H. Bridges, CPA, PFS December 2014
Tax rules which were enacted long before the LLC format came into existence provide that a general partner’s K-1 ordinary business income is subject to self-employment tax, while a limited partner’s K-1 …
Foreign Bank & Financial Accounts and IRS Changes to the OVDP
By Kenneth H. Bridges, CPA, PFS August 2014
There has for many years been a requirement that any US person with a financial interest in or signature or other authority over a foreign financial account file with the Treasury Department …