Tax Warrior Chronicles

Charitable Giving Changes Related to COVID-19

Posted on Tue, Apr 07, 2020

Due to the financial challenges brought on by the coronavirus pandemic, many are seeking assistance from charitable organizations.  At the same time, fewer people have the resources to donate and support these organizations.   To incentivize philanthropy during this difficult time, the recently enacted Coronavirus Aid, Relief and Economic Security Act (CARES Act) included various provisions relating to charitable contribution deductions for individuals and corporations.

 

Qualified Charitable Contributions

The charitable giving provisions in the CARES Act apply to Qualified Charitable Contributions.

Qualified Charitable Contributions under the CARES Act are those that are:

  • made in cash;
Read More

NJ Enacts New SALT Workaround with Entity-Level Tax Election

Posted on Thu, Jan 30, 2020

By: Dan Marques, CPA, MT

 

If at first you don’t succeed, try again.  That appears to be the moto of the NJ Legislature after passing the Pass-Through Business Alternative Income Tax Act (the Act), signed into law by Governor Murphy on January 13, 2020. This is the state’s second attempt to circumvent the $10,000 federal cap on state and local tax (SALT) deductions imposed by the Tax Cuts and Jobs Act (TCJA).

 

A trip down memory lane

Some may recall NJ’s first attempt to address the SALT cap in May 2018, which called for towns, counties and school districts to set up charitable funds for taxpayers to make contributions in exchange for property tax credits. Under this program, individuals

Read More

Follow Dr. King's Dream, and Be Tax Savvy While You Do It!

Posted on Mon, Jan 19, 2015

On a steamy August day in 1963, the world marveled at the now-iconic words spoken by a then relatively unknown, 34-year-old southern preacher. On that day, Rev. Dr. Martin Luther King, Jr. delivered one of the most famous speeches in history, titled “I Have a Dream,”  where he outlined his vision of a more tolerant and cohesive America.  The anaphoric speech touched on people treating others with dignity and respect, no matter who they are or where they come from. 

 

Today, we honor this American hero with a national Holiday, a gleaming monument in our nation’s capital and an Oscar-worthy film on his life as an advocate for all mankind.  The Tax Warriors® give a nod to Dr. King as we

Read More

IRS Takes Hard Line on Substantiation Requirements: Contributions of Household Items

Posted on Mon, Oct 13, 2014

In recent years, the Internal Revenue Service (IRS) has taken a hard line regarding the substantiation of non-cash charitable contributions to reduce fraudulent appraisals and deductions.

 

Background

To deduct donations of cash or property (non-cash items such as clothing or household items) as itemized deductions on your individual income tax return, there are certain substantiation rules.  These rules depend on what you are donating and how much.  For any contribution of $250 or more, you must obtain a “contemporaneous written acknowledgement” from the registered charitable organization to which you are making the donation and that acknowledgement must contain certain language.  The

Read More

ACT FAST! Truly "Last-minute" Year-end, Tax-Saving Moves for You

Posted on Thu, Dec 19, 2013

Investing a few moments with your tax and/or financial advisor can pay off greatly on your 2013 tax bill.  Even though there are only days left before the year ends, it's not too late to make some planning moves that can improve your tax situation for 2013 and beyond. The following are some last-minute (and this time we really mean LAST MINUTE) actions that you can take before December 31, 2013, to improve your overall tax bill in April.

 

HSA contributions

Under the law, a calendar-year taxpayer who is an eligible individual under the health savings account (HSA) rules for December 2013 is treated as having been an eligible individual for the entire year. Thus, if you first became

Read More