Posts Tagged "2017"

Additional refunds result from fiscal year 2017 audits

Posted on May 7, 2018

Even though your chance to be audited may be slim, there’s still a bright side if you do. You could get an additional refund. Of the approximately 1.1 million audits performed in fiscal year (FY) 2017, nearly 34,000 resulted in extra refunds for taxpayers. Those additional refunds totaled more than $6 billion. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in McLean and Tysons Corner, VA. Gilliland & Associates is known for our superior knowledge and aggressive interpretation and application of tax laws. We help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and...

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Make some time for tax and financial planning

Posted on Jul 18, 2017

For most of us, summertime is a bit more relaxed, giving us time to do the tasks we tend to put off. Consider making time to take care of tax and financial tasks. Examples include planning for college or retirement, getting your will written, or building a simple budget. Call if you need help. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in McLean and Tysons Corner, VA. Gilliland & Associates is known for our superior knowledge and aggressive interpretation and application of tax laws. We help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and...

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TAX-FREE INCOME

Posted on Jul 12, 2017

Yes, that’s correct, there are some forms of income you receive that may be tax-free. Here is a list of ten common sources of tax-free income. Gifts. Gifts you receive are not taxable income to you. In fact, they are not subject to gift tax to the person giving the gift as long as the gifts received in one year from one person do not exceed $14,000. Rental income. If you rent your home or vacation cottage for up to 14 days, that rental income does not need to be reported. Child’s income. Up to the standard deduction amount ($6,350 in 2017) in earned income (wages) and $1,050 in unearned income (interest) for children is not taxed. Excess earnings above these amounts could be taxed and $2,100 in unearned income is taxed at the parent’s tax rate. Inheritance. In most states, beneficiaries typically do not pay tax on the value of what they inherit. When inherited property is sold by the beneficiary, however, there may be a capital gains tax obligation. Roth IRA earnings. As long as you meet this retirement account type’s rules, earnings in a Roth IRA are not taxed. Life insurance received. The full value of life insurance received is not taxable income. However, the proceeds may be taxable within the estate of the deceased policyholder. Child support revenue. Income you receive as child support is not deemed to be taxable income. On the other hand, alimony received is taxable income. Home sales gains. Up to $250,000 ($500,000 for married filing jointly) in gains on the sale of a qualified principal residence is not taxable. Scholarships/fellowships. Money received to cover tuition, fees, and books for degree candidates is not generally taxable. Refunds. Federal refunds (technically you’ve already accounted for this income) and most state refunds for non-itemizers are also tax-free. This is by no means a complete list of tax-free income, but it’s nice to know that some areas of tax law still benefit taxpayers. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in McLean and Tysons Corner, VA. Gilliland & Associates is known for our superior knowledge and aggressive interpretation and application of tax laws. We help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and...

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TIPS TO LANDING YOUR DREAM HOME IN A SELLER’S MARKET

Posted on Jun 29, 2017

It’s a tough time to buy a house. With high prices and low supply, homebuyers have to tackle the buying process differently than they would in a flat or down market. Here are some suggestions to landing your dream home in our current real estate market. Be nimble, be flexible. Try to investigate new listings quickly – within hours of their first posting, if possible. If you’re interested in a house but an inspection finds a few flaws, you may have to be flexible about accepting a house with a few quirks or in need of some repairs. Make a strong offer. A seller’s market isn’t a time to lowball your first offer on a house you want. If you’ve prepared and set your expectations below your minimum price range, you should be able to make a strong offer to ensure you are among the most attractive bidders. You shouldn’t wildly overpay, but making a strategic offer above the listing price may sweeten the deal enough to close quickly. Earnest money. You may consider offering a meaningful earnest money component to your offer to show you are serious. Just understand that this money is put at risk if you later change your mind. Few strings. Try to make your offer as simple as possible. The more contingencies, the more room for someone else to sneak in and snap up your target home. Flexible move-in dates may make your offer more attractive to the seller. Having to sell your home before buying theirs may create a snag versus another offer. Good luck on your search. There are many resources available to you to navigate the home-buying waters. Spend some time finding the resources that work best for you and your situation. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in McLean and Tysons Corner, VA. Gilliland & Associates is known for our superior knowledge and aggressive interpretation and application of tax laws. We help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and...

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FINANCES AFTER THE DEATH OF A LOVED ONE

Posted on Jun 22, 2017

The last thing you want to be bothered with when you are grieving is sorting out the finances of your departed loved one. Here are some suggestions to make the process a little easier. Prioritize. Focus on the most pressing tasks you face. Make sure you have access to the right accounts in order to secure living expenses for yourself and any people the departed person supported. Close any of their outstanding debts. Gather documents. Get at least a dozen copies of the death certificate. Insurance companies, government agencies, creditors, and banks will require a copy before they share the departed person’s financial information. Having the person’s financial information ready (including a will, insurance policies and retirement plans) will make the process easier. Notify others. You will need to notify several agencies, institutions and companies of the death. These include the Social Security Administration, the deceased person’s employer, insurance companies, credit bureaus, credit card companies, the post office, utility companies, and creditors. Take time where you can. Some financial issues can wait. Insurance proceeds and inherited assets can remain where they are for six months to a year. When dealing with intense grief, many people make hasty financial decisions they later regret. Make sure you take time to process your grief and address important financial decisions with a clear head. Get professional help. If your loved one has not named an executor of his or her estate, you may be faced with meeting this obligation. If he or she died without a will, each state has laws that affect the settlement process, and it’s probably not something you should tackle on your own. Tax returns may need to be filed, and the tax basis of assets at time of death may need to be established. Working with a financial professional will help you navigate the process and minimize your hassle during a difficult time. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in McLean and Tysons Corner, VA. Gilliland & Associates is known for our superior knowledge and aggressive interpretation and application of tax laws. We help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and...

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