Tax Credit For Making Your Home More Energy Efficient!

If you made your home more energy efficient in 2016, you may qualify for a tax credit this year! We received this great article from the IRS and we wanted to share some main points that stood out. For this, and many more publications, visit the IRS.gov website.

Non-Business Energy Property Credit

  • This credit counts for 10% of the cost of qualified energy saving items. These items include adding insulation, energy-efficient exterior windows and doors, and certain roofs. It does not include the cost to install these items.
  • The credit amount for each type of property has a different dollar limit rather than a percentage. For example, any installation costs of high efficiency heating and air-conditioning, water heaters, or stoves that burn biomass fuel.
  • This credit has a maximum lifetime limit of $500, only $200 of this limit may be used for windows.
  • The main home must be in the U.S and the non-business energy property credit is only available for existing homes.
  • Always have a written certification from the manufacturer that this product does qualify for the tax credit. This will usually be posted on the website. Always keep the original copy with your tax records and not attached to your tax return.
  • You may claim the credit on your 2016 tax return if you did not reach the lifetime limit in the past years.

Residential Energy Efficient Property Credit:

  • This credit is 30% of the cost alternative energy installed in or on a home, including cost of installation.
  • Qualified materials include: solar hot water heaters, solar electric equipment, wind turbines, and fuel cell property.
  • If the credit is more than the tax owed, carry forward the unused portion of this credit to next year’s tax return. There is no dollar limit on the credit for most types of property.
  • The home does not have to be your main home unless the alternative energy equipment is qualified fuel cell property. The residential energy efficient property credit is for both existing home and homes under construction. It is available through 2016.

For Residential Energy Credits, use Form 5695.

Business Resource Partners offers more than just bookkeeping services. We provide tax preparation and filing for both personal and business tax returns. We have a specialized team who is here to help!

We have extended our business hours this tax season and we are ready to work around your busy schedule!

Call us at (321) 236-2771 or visit 310 Almond Street Clermont, FL 34711.

 

What to be aware of when choosing a Tax Preparer:

With tax season already upon us, it is important to know who is preparing your taxes and what their qualifications are. They are responsible for your information and it is important to be conscious of the potential threats presented this time of year.

 

So, what are some things to consider?

 

  1. Qualifications: There are different qualifications depending on your needs. These include

Attorneys, Certified Public Accountants (CPAs), Enrolled Agents, Annual Filing Season Program Participants, Enrolled Retirement Plan Agents, and Enrolled Actuaries.

For more information on this, visit this page which breaks down each qualification and can help you better determine your needs this year.

 

  1. Check the History: Check the preparer’s license status as well as any disciplinary actions. For CPAs, check the State Board of Accountancy. For Attorneys, check the State Bar Association. For Enrolled Agents, you can go to IRS.gov or email epp@irs.gov with the first and last name of the agent, a complete address if it is available, and the Enrolled Agent Number is available. It is recommended to include as much information as possible. For more information on this, visit the verification page.

 

  1. Ask about Service Fees: Avoid preparers who base their price on the percentage of your return or claim they can get you a bigger refund than the competition. Do not give them any tax documents or anything that would include your social security number.

 

  1. Ask for E-filing: Make sure your preparer offers IRS e-file. The IRS has processed billions of e-files successfully and there is no reason why this should be impossible.

 

  1. Make Sure the Preparer is Available to You: You might need to contact your preparer after the April 18th due date. Don’t hire someone who is constantly on the move and will be difficult to get in touch with.

 

  1. Provide Records & Receipts: A good preparer will want to have all the necessary information in order to properly file your tax return such as total income, tax deductions, credits, etc. For example, do not rely on someone who only wants your last pay stub instead of a From W-2. This is again IRS e-filing rules.

 

  1. Never Sign a Blank Return: This may sound like a no brainer, but it is worth mentioning. Do not use a preparer who asks you to sign a blank return.

 

  1. Review Before Signing: If something is not making sense, ASK. You should feel completely informed and comfortable with any document you are signing. Always double check the bank Account and Routing number to make sure that it is yours. Always keep copies of everything.

 

  1. Make Sure Your Preparer signs and includes their PTIN: This is the preparer’s Preparer Tax Identification Number and they must include this in the document by law.

 

  1. Report any abusive behavior to IRS: Most preparers will be honest and provide excellent service, however, some are dishonest. To report any abusive or fraudulent actions, use Form 14157. If you suspect your return was changed without your consent, fill From 14157-A. These are available on gov any time.

 

As always, if you need any help with Tax Preparation and filing, Business Resource Partners is always here to help! We have our Accountant Michael, our Enrolled Agent Mythili, and our owner Lorrie who is a participant in the Annual Filing Season Program. Our front desk ladies Stephanie and Andrea would be happy to schedule appointments for your needs.Please contact us at (352) 236-2771 or visit us at 310 Almond Street Clermont FL, 34711.

$1 Billion Available!

The IRS has unclaimed federal income tax refunds totaling more than $1 Billion for roughly 1 million taxpayers who did not file a 2013 income tax return.

If you or someone you know did not file for taxes in 2013, you may be afraid to do so now for fear that you’ll be penalized or in legal trouble. Did you know there is no penalty for filing late if you are due a refund? You can still file a 2013 tax return with the IRS no later than this year’s Tuesday, April 18th deadline. There are an estimated 66,900 individuals who may be due 2013 refunds in Florida, totaling about $67,758.

The law usually provides most tax payers with a three-year window of opportunity for claiming a refund. The unclaimed money becomes property of the U.S Treasury if the tax payer does not file a return within the three years. If you are filing a 2013 tax return this year, make sure you properly address mail and postmark the tax return by the April 18th date.

If you have not filed taxes for 2014 & 2015, your check for your 2013 refund may be held. The refund will be allocated to any debts such as a state tax agency, money owed to the IRS, child support, or student loans.

You could lose more than just a refund for the year of 2013 if you do not file your taxes. Low or moderate income workers may be eligible for Earned Income Tax Credit (EITC). In 2013, this credit was worth as much as $6,044.

If you have questions about how to get forms for prior year’s tax returns, visit the Forms and Publications page on the IRS website. These forms are available to you at no charge.

If you are missing any forms such as W-2, 1098, 1099, or 5498 for the years 2013-2015, you should contact your employer, bank, or other payer. If you are unable to get these forms from a previous employer, you can use the IRS’s tool for Getting Your Transcript Online and obtain your Wage & Income Transcript. You may also file Form 4506-T to request a transcript of your 2013 income and use the information to file your tax return

If you need to file your 2013 or later tax returns, Business Resource Partners will gladly provide this service for you! Please call our office and schedule your appointment with our tax professionals at (321) 236-2771 or visit us at 310 Almond Street Clermont, FL 34711.

What Do You Know About Capital Gains & Losses?

A capital asset can include inherited property or property someone owns for personal use or as an investment. When you sell a capital asset, the sale will result in either a capital gain or loss. Here’s a great article sent to us by the IRS.

Helpful facts: Capital Gains & Losses According to the IRS:

~Capital Assets: These include, home, car, stocks and bonds.

~Gains & Losses: A basis is what you originally paid for your asset. The Capital gain or loss is the difference between the basis and the amount you get when you sell the asset. For more details about inherited property, see IRS Publications 544, 550, & 551.

~Net Investment Income Tax: Taxpayers must include all capital gains in their income. If your income was above a certain amount, it may be subject to Net Investment Income. For more details on this, visit IRS.gov.

~Deductible Losses: You can deduct capital losses on the sale of investment property. You cannot deduct losses on the sale of a property you have for personal use.

~Limit on Losses: If your capital loss is more than your gains, you may deduct the difference on your tax return. Loss is limited to $3,000/yr, or $1,500 if married but filing separately.

~Carryover Losses: If your total net capital loss is more than the limit mentioned above, you may carry it over to next year’s tax return.

~Long & Short Term: If you hold the property for 1 year or less, it is short-term.

~Net Capital Gain: Ultimately, if your gains are more than your losses, you have a net capital gain. If your long-term gains are more than your long-term losses, the difference is a net long-term capital gain. If the net long-term capital gain is more than the short-term capital loss, you have a net capital gain.

~Tax Rate: This depends on your income. The Max on a net capital gain is 20%. Most fall between a 0%-15%. However, a 25%-28% can apply to certain types of net capital gain.

~Forms to File: You will often need to file Form 8949, and Schedule D with your tax return. For more on this, visit the Schedule D Instructions.

It is important to keep a copy of your tax returns. If you are using a software product for the first time, you may be required to include your Adjusted Gross Income from the prior year’s return to confirm your identity. To learn more about this, or how to electronically sign a tax return, visit this Validation Info Page.

Business Resource Partners has tax professionals on staff who know the ins and outs of tax prep requirements, we would be happy to assist you in your 2016 and future tax needs!

Call (321) 236-2771 or visit us at 310 Almond Street Clermont, FL 34711.

Great News! Enhanced Services at Business Resource Partners!

We have some exciting news to share with you!

We are now offering both business and personal tax return preparation. We have extended our business hours on Tuesday through Friday until 7:30pm, and Saturdays from 9am-2pm. We are happy to offer other hours by appointment to accommodate your schedule.

Our team of experts is happy to help with all of your tax needs. Our dedicated staff speak several different languages including Spanish and German. We are looking forward to assisting you with all personal and business tax returns.

Our team of professionals represent many facets of Accounting:

~Lorrie Reid, our owner and founder, has completed the Annual Filing Season Program, a brand new certification from the IRS

~Michael Jacobson holds a Masters Degree in Accounting

~Mythili Richards, our IRS Enrolled Agent, is certified to represent you to the IRS in the event of a tax issue

~Stephanie Rubin is our Payroll Specialist/Office Manager

~Andrea Gregori is our multi-talented Administrative Assistant

We look forward to working with you!

Call us at (321) 236-2771 for further information and appointments, or visit us at 310 Almond Street, Clermont FL 34711.