Resources & Links

For your convenience, DMJ provides an up-to-date library of insights, tools, resources, and special announcements related to all your tax and accounting needs. 

Resources & Links

Stay up to date with DMJ news, special announcements and upcoming deadlines.

Tax Watch

Tax Breaks to Those Who Do Volunteer Work for Charity

f you are a volunteer worker for a charity, you should be aware that your generosity may entitle you to some tax breaks. Although no tax deduction is allowed for the value of services you perform for a charitable organization, some deductions are permitted for out-of-pocket costs you incur while performing the services (subject to the deduction limit that generally applies to charitable contributions). This includes items such as…

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When Individuals Require Appraisals for Their Charitable Contributions

If you donate property to a charity, you may be required to get an appraisal. IRS requires donors and donee organizations to supply certain information to prove a taxpayer’s right to deduct charitable contributions. If you donate an item (or a group of similar items) of property worth more than $5,000, certain appraisal requirements apply. You must get a “qualified appraisal,” attach an “appraisal summary” to the first tax return on which the deduction is claimed, include other information with the return, and maintain certain records.

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Substantiating Charitable Contributions By Individuals

We wanted to provide you the requirement to substantiate all of your charitable contributions. If the contribution is $250 or more, you'll need a written receipt from the charity. If you donate property valued at more than $500, additional requirements apply. General...

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What to Do If You Can’t Pay Your Tax at Extension Time?

Don’t let your inability to pay your tax liability in full keep you from filing your tax return properly and on time. Include as large a partial payment as you can, and consider borrowing the funds for payment. As discussed below, just filing without full payment can save you substantial amounts in filing penalties. More importantly, procedures exist for payment extension and installment payment arrangements which will keep IRS from instituting its collection process (liens, property seizures, etc.).

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Nanny Tax – What Is That?

The “Nanny Tax” isn’t limited to a nannies. It also applies to housekeepers, maids, babysitters, gardeners or other household employees who aren’t independent contractors. If you employ someone who’s subject to the “Nanny Tax,” you aren’t required to withhold federal income taxes from the employee’s pay. You have to withhold only if your nanny asks you to and you agree to withhold. (In that case, have the nanny fill out a Form W-4 and give it to you, so you can withhold the correct amount.) However, you may be required to withhold social security and Medicare tax (FICA). And you may also be required to pay (but not withhold) federal unemployment (FUTA) tax.

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Observations of the New Tax Law – Taking the Best Advantage

Here are some observations on the new tax law. These are things that clients can do to better comply with or make the most of the new rules. Individuals: 1. “Bunching” Deductions: Under the new higher standard deduction, with more limits on itemized deductions, consider focusing your deductions in every other year. This doesn’t work for every client, but for some who’s new itemized deduction total will be near the standard deduction amount, this can be a good plan. For example, in even years, pay two years of charitables (to the extent you can), pay two years of home property taxes (one in January and one in December, for example), and/or schedule pricey medical or dental procedures. In the odd years, plan on claiming the standard deduction…

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Warning! S Corporation Shares in a Grantor Trust

Many S Corporation shareholders are placing S Corporation shares in Grantor Trusts along with many other assets in order to avoid probate. This is a smart estate planning strategy that allows the Grantor’s estate to avoid probate. Care must be taken once the Grantor dies or becomes incapacitated and the nature of the trust changes from revocable to irrevocable or a new Trustee is appointed in the case of incapacitation…

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Simple Retirement Plans

One type of retirement plan for small businesses is the “SIMPLE” retirement plan: “savings incentive match plan for employees.” This type of plan is targeted at businesses with 100 or fewer employees, and is designed to offer greater income deferral opportunities than individual retirement accounts (IRAs), with fewer restrictions and administrative requirements than traditional pension or profit-sharing plans…

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Limits on a Partner’s Loss Deductions

As you are probably aware, one of the advantages of doing business as a partnership (or S corporation), as opposed to as a regular corporation, is that the business losses “pass through” to the partners and can be deducted by them on their individual tax returns. Many taxpayers are not aware, however, that limitations apply on how much of a partner’s loss can be deducted.

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Jointly-Held Property: Inclusion In Gross Estate

When individuals consider estate planning, questions surrounding jointly-held property frequently present themselves. This is especially so when the property is held jointly with someone other than a spouse. The most common forms of joint ownership are presented here. Please feel free to consult with us if you have specific questions related to your own estate tax planning needs.

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