Tax Warrior Chronicles

NJ’s ‘Airbnb Tax’ Updated to Help Owners

Posted on Tue, Aug 13, 2019

By: Ashley Menders

 

Some property renters no longer need to fret about New Jersey’s ‘Airbnb Tax’ while soaking up the sun at the Jersey Shore anymore! Since New Jersey implemented its new tax that impacted all short-term rentals last October, Governor Phil Murphy has signed a bipartisan bill to undo part of this major ‘Airbnb Tax.’ Here’s who is no longer affected…

 

As mentioned in our previous blog detailing the ‘Airbnb Tax’ that adds a huge 11.6% tax on short-term rentals, this new bill takes a weight off many shore renters’ shoulders. Previously, this new tax was on any short-term rental of less than 90 days. The only exception was if the property was listed with a real estate agent

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The Millennial Series: Part VIII – Understanding Your Company’s Retirement Plan Options

Posted on Thu, Oct 19, 2017

By: Robert Vogel, CFP

 

To millennials, retirement seems a lifetime away. And, it is! However, now is the best time to start saving for retirement, says our guest blogger, Robert M. Vogel, CFP®, Director of Financial Planning for JFS Wealth Advisors in Doylestown, PA. In today’s post, Robert gives millennials—or anyone new to the workforce—an overview of understanding and maximizing company-sponsored retirement plans like a 401(k) or IRA, in plain and simple terms.

 

“A part of all you own is yours to keep.”  This is the secret of wealth revealed by the wealthy man in the 1926 book The Richest Man in Babylon, by George Samuel Clason.  Written as a series of financial education pamphlets,

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Millennial Series: Part VI (2 of 2) – How Employee Stock Options are Taxed

Posted on Tue, Sep 19, 2017

By: Chris Catarino, CPA, MT

 

In our last post, you learned how employee stock options work – strike price, vesting and exercises (not the sweaty gym kind). In today’s post, we’ll explain how the two main employee stock options (ISO’s and NQSO’s) are taxed since nothing is more frustrating than owing a big chunk of tax in April that you were not expecting.

 

Nonqualified Stock Options

 

What is an NQSO?

 

Most stock options offered to employees and directors are nonqualified stock options (NQSO’s). Another term for these options is non-statutory stock options. A NQSO is generally any stock option that does not meet the qualifications of an Incentive Stock Option (discussed below), hence

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Millennial Series: Part VI (1 of 2) – How Employee Stock Options Work

Posted on Wed, Sep 06, 2017

By: Chris Catarino, CPA, MT

 

You just graduated and landed a sweet gig at an internet start-up. There’s no dress code, flexible hours and kegs instead of watercoolers. And that’s not all, they’re giving you employee stock options, too! That’s what CEO’s and company founders get – so that’s, like, better than cash…right? Today, we’ll look closely at employee stock options and, later, in part two of this two-part post, how they are taxed.

 

Whether you receive stock options for the first time at a new job or through a promotion it can be confusing. There’s new vocabulary, a slew of acronyms, and extensive forms written in “legalese.” As part of our Millennial blog series, we’ll explain how

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IRS Issues Tax Relief to Hurricane Harvey Victims and Warns of Charity Scams

Posted on Wed, Aug 30, 2017

By: Eric R. Elmore

 

The IRS announced Hurricane Harvey victims in parts of Texas have until January 31, 2018, to file certain individual and business tax returns and make certain tax payments.  This includes an additional filing extension for taxpayers with valid extensions that run out on October 16, and businesses with extensions that run out on September 15.  It also warned of possible charity scams related to the storm. If you or anyone you know was effected by the storm, is volunteering with relief efforts, or if you plan on making a charitable contribution to support the victims of this natural disaster, please read today’s Tax Warrior Chronicles post.

 

Tax Relief

 

The IRS is now

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Rehab Your Tax Return: 10-20% Tax Credit for “Old” Building Renovations

Posted on Tue, Apr 04, 2017

By: Sean P. Kelly and Chris Catarino, CPA

 

If you are renovating an older property or looking for a tax-efficient real estate development project, the Rehabilitation Tax Credit may be a lucrative opportunity. Qualifying rehabilitation projects receive a credit for 20% of rehabilitation costs for certified historical structures or 10% of rehabilitation costs for buildings placed in service before 1936.This dollar-for-dollar tax credit can reduce out-of-pocket renovation costs and significantly improve return on investment. Questions abound, and The Tax Warriors® have the answers.

 

Is my building historical? To qualify for the 20% credit, the rehabilitation must be to a certified

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Tax Implications of Selling a Structured Settlement

Posted on Mon, Mar 27, 2017

By: Ted Nebiolo and Bruce Benjamin, CPA, MT

 

College tuition, purchasing a home, starting a business.  These are all life events that may call for a large, upfront cash outlay.  If you are receiving a structured settlement payable as an annuity, it may be an attractive solution to sell it to obtain the cash for the lump-sum payment. If you are considering this route, know the tax implications and the process that determines the real value of your settlement.

 

What is a Structured Settlement?

Payments to settle a legal, financial, or insurance arrangement are usually negotiated to be paid in installments over time rather than in a single lump sum.  These are structured settlements

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And the Winner Is: The IRS…Seriously

Posted on Mon, Feb 27, 2017

By: Eric R. Elmore

 

The closing moments of Sunday’s broadcast of the 89th Academy Awards brought more drama than the honored performances. It was a reminder we all make mistakes, like “forgetting” to report some “gifts” as income to Uncle Sam. The elaborate “gifts” given to Academy presenters and performers add up to tens of thousands of dollars, and when those gift baskets, boxes, and envelopes are opened, the IRS is always the real winner!

 

Each year, the Academy reminds the recipients its gifts are 100% taxable as income. Movie stars and music icons performing on cinema’s biggest stage and biggest night, may find that fact easy to forget or overlook. 

 

Since the 1970’s, simple gifts,

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IRS Rules Post-Retirement Payments Are Subject to Self-Employment Tax

Posted on Tue, Feb 21, 2017

By: Tiffany Diaz, CPA

 

In a perfect world, retirees would receive post-retirement payments from former employers tax-free. However, a recent IRS letter ruling puts a damper on that notion. In this short blog, we give an overview of the details and the only exception to the rule regarding post-retirement payments.

 

The IRS letter ruling 2016-0081 determined a retiree’s payments from a former employer were subject to the self-employment tax, since the payments were earned as a result of the retiree’s 34 years of service to the company and were not being treated as wages subject to payroll taxes. The IRS used Section 1402(b) of the Internal Revenue Code ("the Code") to analyze the

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The Taxation of the “Uber” Economy

Posted on Tue, Jan 24, 2017

By: Stephanie Otake, CPA

 

Making extra cash with Uber or Lyft has become a popular pastime, but make sure you consider the tax implications that come with it.  In this blog post, we’ll pose and answer common questions of those taking part in the so-called “sharing economy.”

 

By now, most have either heard of Uber or Lyft, or have used them. The ride-on-demand service from our cell phones has become a formidable competitor to the taxi cab industry. Many people are taking advantage of these online platforms to make money using their personal property—in this case, their car. Receiving income by providing services from these activities is taxable and must be reported to the IRS.

 

As an

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