Monthly Archives: September 2014

The Dynamics of Fixed and Variable Costs when Calculating Lost Profit Damages by Adam J. Lang, CPA/CFF, CFE

Posted on September 30, 2014

A plaintiff filing suit to recover lost profits resulting from a defendant’s wrongful action must estimate with reasonable certainty the amount of the loss caused by the defendant’s misconduct. When calculating lost profits, the damages expert establishes an amount of lost revenues and then determines the costs that should be deducted from that amount. Despite […]

Change to FSA Rollover Rule by Nancy M. Valdes, CPA

Posted on September 25, 2014

In 2014, the U.S. Department of Treasury ended its use-it-or-lose-it policy on Flexible Savings Accounts (FSAs) by allowing employees with FSA to rollover up to $500 of unspent funds into the following year. Flexible Spending Accounts (FSAs) allow workers to set aside up to $2,500 in pre-tax money annually to pay for certain out-of-pocket medical […]

U.S. Treasury Aims to Curb Corporate Tax Inversions by James W. Spencer, CPA

Posted on September 24, 2014 by Jim Spencer

In the absence of anti-inversion legislation by Congress, the U.S. Treasury has recently taken matters into its own hands and announced the steps it will take to stem the rising tide of U.S. companies attempting to avoid or reduce their U.S. tax liabilities by moving their headquarters overseas.  The Treasury’s announcement aims to make tax […]

Deducting Expenses when Relocating for Work by By Dustin Grizzle

Posted on September 18, 2014 by Dustin Grizzle

Landing a new job or promotion can be an exciting time. However, when these life changes require a move to a new city or state, stress and expenses can escalate quickly. When taxpayers relocate to start new jobs or to work at a new location with their existing employer, they may deduct some moving-related expenses […]

Navigating the Challenges of 401(k) Audit Requirements and Fiduciary Responsibilities By Lisa N. Interian, CPA

Posted on September 12, 2014 by Lisa Interian

According to the U.S. Bureau of Labor Statistics, retirement benefit plans were available to 85 percent of employees working for private businesses with 100 or more workers in 2013. In order to protect employees’ investments and help them to make sound financial decisions, businesses sponsoring these plans, particularly defined benefits and defined contribution plans, are […]

Tax Benefits and Challenges of Renting Vacation Homes By Kenneth J. Strauss, CPA/PFS, CFP

Posted on September 09, 2014 by

Despite the added cash flow that vacation properties can generate for their owners, income from such activities typically is taxable and may be subject to the additional 3.8 percent Net Investment Income Tax. Understanding the tax implications of renting residential property, including houses, apartments, condominiums and even boats, is important to ensure owners maximize the […]

Florida Offers Residents Sales-Tax Holiday on Energy-Efficient Products by Karen Lake, CPA

Posted on September 08, 2014 by Lisa Interian

From September 19 through 21, Florida residents can enjoy a sales-tax holiday on the first $1,500 spent on the purchase of one new Energy Star product, including room air conditioners, ceiling fans, air purifiers, dehumidifiers, specific light bulbs as well as appliances such as refrigerators, freezers, water heaters, and washers and dryers.  The tax exemption […]

Property Sellers Owe Tax on Reclaimed Property when Buyers Default By John G. Ebenger, CPA

Posted on September 05, 2014 by John Ebenger

A recent U.S. Tax Court case demonstrates the tax implications when sellers reacquire property after buyers default.   In its ruling, the court found that the sellers rightfully excluded from their reportable income $505,000 in cash payments they received from the buyer for their principle residence.  However, the court explained, once the buyer stopped making […]