IRS Tax Tips For Gambling Income And Losses

Gambling winnings should be reported as income on your tax return.

You must itemize deductions to deduct gambling losses, and they can be deducted only up to the amount of any gambling winnings.

If you are a casual gambler, these tax tips can help:

1. Gambling income.  Income from gambling includes winnings from the lottery, horse racing and casinos. It also includes cash and non-cash prizes. You must report the fair market value of non-cash prizes like cars and trips.
   
   
2. Payer tax form.  If you win, the payer may give you a Form W-2G, Certain Gambling Winnings. The payer also sends a copy of the W-2G to the IRS. The payer must issue the form based on the type of gambling, the amount you win and other factors. You’ll also get a form W-2G if the payer must withhold income tax from what you win.
    
3. How to report winnings.  You normally report your winnings for the year on your tax return as “Other Income.” You must report all your gambling winnings as income. This is true even if you don’t get a Form W-2G.
   
   
4. How to deduct losses.  You can deduct your gambling losses on Schedule A, Itemized Deductions. The total you can deduct, however, is limited to the amount of the gambling income you report on your return.
   
   
5. Keep gambling receipts.  Keep records of your wins and losses. This means keeping items such as a gambling log or diary, receipts, statements or tickets.

See Publication 525, Taxable and Nontaxable Income for rules on this topic. Refer to Publication 529, Miscellaneous Deductions for more on losses. It also lists some of the types of records you should keep. You can download and view both on IRS.gov/forms at any time.

IRS Tax Tips provide valuable information throughout the year. IRS.gov offers tax help and info on various topics including common tax scams, taxpayer rights and more.
Additional IRS Resources:

• Tax Topic 419, Gambling Income and Expenses

IRS YouTube Videos:

• Gambling Winnings and Losses – English | Spanish | ASL

IRS Podcasts:

• Gambling Winnings and Losses – English | Spanish

For help with your legal needs contact a business, tax, and health care law attorney at the offices of AttorneyBritt.

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Reduce IRS Taxes With Home Energy Tax Credits

Certain energy-efficient home improvements can cut your energy bills and save you money at tax time. 

Here are some key facts that you should know about home energy tax credits:



Non-Business Energy Property Credit

• Part of this credit is worth 10 percent of the cost of certain qualified energy-saving items you added to your main home last year. This may include items such as insulation, windows, doors and roofs.
• The other part of the credit is not a percentage of the cost. This part of the credit is for the actual cost of certain property. This may include items such as water heaters and heating and air conditioning systems. The credit amount for each type of property has a different dollar limit.
• This credit has a maximum lifetime limit of $500. You may only use $200 of this limit for windows.
• Your main home must be located in the U.S. to qualify for the credit.
• Be sure you have the written certification from the manufacturer that their product qualifies for this tax credit. They usually post it on their website or include it with the product’s packaging. You can rely on it to claim the credit, but do not attach it to your return. Keep it with your tax records.
• You must place qualifying improvements in service in your principal residence by Dec. 31, 2016.

Residential Energy Efficient Property Credit

• This tax credit is 30 percent of the cost of alternative energy equipment installed on or in your home.
• Qualified equipment includes solar hot water heaters, solar electric equipment, wind turbines and fuel cell property.
• Qualified wind turbine and fuel cell property must be placed into service by Dec. 31, 2016. Hot water heaters and solar electric equipment must be placed in to service by Dec. 31, 2021.
• The tax credit for qualified fuel cell property is limited to $500 for each one-half kilowatt of capacity. The amount for other qualified expenditures does not have a limit. If your credit is more than the tax you owe, you can carry forward the unused portion of this credit to next year’s tax return. • The home must be in the U.S. It does not have to be your main home, unless the alternative energy equipment is qualified fuel cell property.

Use Form 5695, Residential Energy Credits, to claim these credits. For more on this topic refer to the form’s instructions. You can get IRS forms on IRS.gov/forms anytime.


For help with your legal needs contact a business, tax, and health care law attorney at the offices of AttorneyBritt.

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KKK Grand Dragon Endorsed Hillary Clinton In March; Hillary Also Accepted $20,000 Contribution From KKK

From Gateway Pundit Blog:

This interview took place after a KKK rally in California in March.

Reporter To KKK Grand Dragon: Who do you like for president, sir.

Will Quigg (KKK Grand Dragon): Hillary Clinton.

Reporter: Do you think whites are superior to Blacks and Latinos

Will Quigg: Well we are God’s chosen people.

Hillary Clinton’s presidential campaign has received more than $20,000 in donations contributed by members of the Ku Klux Klan, a prominent member of the hate group announced earlier this year.

Somehow, the media and Hillary Clinton fail to mention these items when falsely claiming that Trump and his 10s of millions of supporters are all "racists".

Hillary Clinton is an FBI documented LIAR.  WHY WOULD ANY RATIONAL 

PERSON BELIEVE ANYTHING SHE HAS TO SAY !!!!

IRS Help For Taxpayers Who Fail To Follow IRA and Retirement Plan Rollover 60-Day Rule

The Internal Revenue Service has provided a self-certification procedure designed to help recipients of retirement plan distributions who inadvertently miss the 60-day time limit for rollovers into another retirement plan or individual retirement arrangement (IRA).


In Revenue Procedure 2016-47, the IRS explained how eligible taxpayers, encountering a variety of mitigating circumstances, can qualify for a waiver of the 60-day time limit and avoid possible early distribution taxes. In addition, the revenue procedure includes a sample self-certification letter that a taxpayer can use to notify the administrator or trustee of the retirement plan or IRA receiving the rollover that they qualify for the waiver.

Normally, an eligible distribution from an IRA or workplace retirement plan can only qualify for tax-free rollover treatment if it is contributed to another IRA or workplace plan by the 60th day after it was received. In most cases, taxpayers who fail to meet the time limit could only obtain a waiver by requesting a private letter ruling from the IRS.

A taxpayer who missed the time limit will now ordinarily qualify for a waiver if one or more of 11 circumstances, listed in the revenue procedure, apply to them.  To Qualify:

(1) No prior denial by the IRS.  The IRS must not have previously denied a waiver
request with respect to a rollover of all or part of the distribution to which the contribution relates.

(2) Reason for missing 60-day deadline.  The taxpayer must have missed the 60-
day deadline because of the taxpayer’s inability to complete a rollover due to one or more of the following reasons:

1. an error was committed by the financial institution receiving the contribution or making the distribution to which the contribution relates;


2. the distribution, having been made in the form of a check, was misplaced and
   never cashed; 


3. the distribution was deposited into and remained in an account that the
   taxpayer mistakenly thought was an eligible retirement plan;


4. the taxpayer’s principal residence was severely damaged;


5. a member of the taxpayer’s family died


6. the taxpayer or a member of the taxpayer’s family was seriously ill;


7. the taxpayer was incarcerated;


8. restrictions were imposed by a foreign country;


9. a postal error occurred; 


10. the distribution was made on account of a levy under § 6331 and the proceeds
    of the levy have been returned to the taxpayer; or


11. the party making the distribution to which the roll
    over relates delayed providing information that the receiving plan or IRA required to complete the rollover despite the taxpayer’s reasonable efforts to obtain the information.

(3) Contribution as soon as practicable; 30-day safe harbor.  The contribution
must be made to the plan or IRA as soon as practicable after the reason or reasons listed in the preceding paragraph no longer prevent the taxpayer from making the contribution.  This requirement is deemed to be satisfied if the contribution is made within 30 days after the reason or reasons no longer prevent the taxpayer from making the contribution. 

Ordinarily, the IRS and plan administrators and trustees will honor a taxpayer’s truthful self-certification that they qualify for a waiver under these circumstances. Moreover, even if a taxpayer does not self-certify, the IRS now has the authority to grant a waiver during a subsequent examination.

Other requirements, along with a copy of a sample self-certification letter, can be found in the revenue procedure.

The IRS encourages eligible taxpayers wishing to transfer retirement plan or IRA distributions to another retirement plan or IRA to consider requesting that the administrator or trustee make a direct trustee-to-trustee transfer, rather than doing a rollover. Doing so can avoid some of the delays and restrictions that often arise during the rollover process. For more information about rollovers and transfers, check out the Can You Move Retirement Plan Assets? section in Publication 590-A or the Rollovers of Retirement Plan and IRA Distributions  page on IRS.gov.


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Khizr Khan Says Hillary Is Allah's Candidate

Khizr Khan, the sharia law promoting Hillary supporter who spoke at DNC convention, went on Pakistan TV to declare that Allah wants Hillary to win the election.   Get that?  Hillary Clinton is Allah's choice.

So if you are inclined to shout Allahu Ahkbar from time to time then Hillary is your candidate.  If on the other hand you think a temporary halt to refugees from Syria and other terrorist countries is a common sense perfectly reasonable thing to do, then VOTE FOR TRUMP THE NOT ALLAH'S CHOICE.

The choice for America is clear.  if you want the USA to experience a 1000 fold increase in rapes and sexual assaults just like what is happening in Germany and Sweeden, if you want the USA to experience at least one terrorist attack per week like what is happening in France, and if you want Iran to give a nuclear bomb to ISIS so they can detonate it in one of our major cities, then vote for Hillary.  She's Allah's choice.

UPDATE:  Yesterday, 8/8/16, Hillary Clinton was speaking to an audience in Kissimmee, Florida, a city located near Orlando, Florida where the Pulse Nightclub Islamist Terror Attack took place killing 49 people.  Sitting prominently behind Hillary was the father of the terrorist who killed these 49 people, Siddique Mateen.

As Khizr Khan stated, Hillary is Allah's candidate.

Legal Help For New Business Formations And Startups | Corporations And LLCs

Forming A Business In Texas Made Easy:-

At the Austin, Texas Law Firm Of AttorneyBritt, our business formation attorneys will help you turn your vision of a healthy and thriving company into reality by providing you with the legal tools you need to thrive well beyond tomorrow. We can help in most areas including

• Business Operating Agreements
• Re-Organization/conversions
• Governance Requirements
• Family Business Issues
• Formation of corporations, limited liability companies, partnerships, limited liability partnerships, professional limited liability companies, and sole proprietorships
• Officer-Director liability issues

 

Step 1:  Review And Select The Appropriate Type Of Organization For Your Business.

Given the tax and legal implications when choosing your business structure, new business owners should always seek the guidance of a highly qualified attorney with a professional background in both business law and tax law, an attorney such as the dual professional attorneys and CPAs at  the Austin, Texas law firm of AttorneyBrit.  We can verify all legal requirements are properly considered before you choose a business structure.  The business structures in the State of Texas, and in most other states as well, are as follows:

• Sole Proprietorship

The sole proprietorship is the simplest business form under which one can operate a business. A sole proprietorship is not a legal entity. It is simply an enterprise that is owned and operated by an individual. It is the easiest type of business to establish-no state filing or agreement with other owners is required. By default, once an individual starts selling goods or services, he or she has created a sole proprietorship.

A sole proprietorship is not legally separate from its owner. The law does not distinguish between the owner's personal assets and the business' obligations.

A sole proprietor's assets can be (and often are) used to satisfy the business' debts. Consider this before selecting a sole proprietorship as your business form. Accidents happen. Businesses go out of business all the time.These unfortunate circumstances may quickly become a nightmare for its owner.

• General Partnership

A partnership is a business form created automatically when two or more persons engage in a business enterprise for profit. A general partnership is the simplest variety of partnership. By default, a business that begins with a verbal agreement or handshake is considered a general partnership. In a general partnership, all partners share in the management of the entity and share in the entity's profits. Matters relating to the ordinary business operations of the partners are decided by the partners. A formal, written partnership agreement that sets forth all the partners' rights and responsibilities is always highly recommended; oral partnership agreements are fertile ground for disputes among partners.

A general partnership offers no liability protection to its owners-the general partners are all liable for the debts and obligations of the general partnership. This means that a general partner's personal assets can be used to satisfy the business debts of a general partnership.

• Limited Partnership

A limited partnership (LP) is a variety of partnership owned by two classes of partners: general partners and limited partners. General partners manage the enterprise and are personally liable for its debts. Limited partners contribute capital and share in the profits, but typically do not participate in the management of the enterprise. Another notable distinction between the two classes of partners is that limited partners incur no personal liability for partnership debts beyond their capital contributions.

In an LP, at least one partner must be a general partner with unlimited liability, and at least one partner must be a limited partner whose liability is limited to the amount of his or her investment. Limited partners enjoy liability protection much like the shareholders of a corporation or the members of a limited liability company (LLC).

An LP allows for pass-through taxation, as its income is not taxed at the entity level. Limited partners can use losses to offset other passive income on their tax returns. General partners' losses can be used to shelter other income up to the value of their investment in the partnership, since their losses are not usually considered passive. LPs have been largely eclipsed by the development of the more versatile LLC.

To form an LP, the LP organizers must file appropriate formation documents with their state's business chartering agency and must pay a required filing fee. The LP organization is especially appealing to types of businesses where a single, limited-term project is the focus (such as real estate or the film industry). LPs can be used as a form of estate planning in that parents can retain control of their business while transferring shares to their children.

• Limited Liability Partnership (LLP)

A limited liability partnership (LLP) is a hybrid business form that shares attributes of partnerships and limited liability companies (LLCs). An LLP is an entity comprised of licensed professionals, such as attorneys, accountants, and architects. The partners in an LLP may enjoy personal liability protection for the acts of other partners (but each partner remains liable for his or her own actions). State laws generally require LLPs to maintain generous insurance policies or cash reserves to pay claims brought against the LLP.

The LLP form is appealing to licensed professionals that are prohibited from operating under an LLC or corporation-professionals such as accountants, attorneys, and architects. An LLP also allows for pass-through taxation, as its income is not taxed at
the entity level.

To form an LLP, the LLP's organizers must file appropriate formation documents with their state's business chartering agency and must pay a required filing fee.

• C-Corporation

The standard corporation, also called a C corporation, is the most common and reliable business structure. A corporation is a separate legal entity owned by its shareholders. As a result, it protects its owners from personal liability for corporate debts and obligations.

A corporation's shareholders, directors, officers, and managers must observe particular formalities in a corporation's operation and administration. For example, decisions regarding a corporation's management must often be made by formal vote and must be recorded in the corporate minutes. Meetings of shareholders and directors must be properly noticed and must meet quorum requirements. Finally, corporations must meet annual reporting requirements in their state of incorporation and in states where they do significant business.

Taxation is a significant consideration when choosing a business structure. A C corporation is taxed as a separate legal entity (i.e., no "pass-through" taxation like a partnership). If the corporation distributes profits to the shareholders in the form of dividends, shareholders pay income tax on those distributions; thus, commentators criticize C corporations as imposing "double taxation."

As with any business entity that offers liability protection to its owners, a corporation must file a charter in its home state. A corporation begins its life by filing articles of incorporation (sometimes called a certificate of incorporation) in the appropriate state and paying the necessary filing fee.

• S Corporation

An S corporation is a standard corporation that has filed for S corporation status with the Internal Revenue Service (IRS). The S corporation's tax election adopts pass-through taxation-thereby sidestepping the double taxation burden borne by C corporations.

S corporations file an informational tax return (much like a partnership) but the entity pays no tax. The shareholders report their share of the S corporation's profit or loss on their individual tax returns.

• Limited Liability Company

The limited liability company (LLC) is often described as a hybrid business form. It combines the liability protection of a corporation with the tax treatment and ease of administration of a partnership. The LLC is America's newest form of business organization; the great bulk of laws authorizing LLCs in the United States were passed in the 1980s and 1990s. The watershed event in the rise of the LLC was a 1988 IRS ruling that recognized partnership tax treatment for LLCs. Within 6 years, 46 states authorized LLCs as a business form.

LLCs enjoy pass-through taxation-thereby sidestepping the double taxation burden borne by C corporations. LLCs file an informational tax return (much like a partnership) but the entity pays no tax. The members (owners) report their share of the LLC's profit or loss on their individual tax returns. A note-of-caution, some states including Texas have reformed their tax laws to include a Franchise Tax for LLC's and PLLC's on profits over a certain amount.

LLCs can be formed only through filing a charter document (typically called articles of organization) in the appropriate state and paying the required filing fee.

• Professional Limited Liability Companies

Professional limited liability companies (PLLCs) are specialized entities organized and operated solely by licensed professionals such as attorneys, accountants, and architects. The members (owners) of a PLLC may enjoy personal liability protection from the acts of other members, but each member remains liable for his or her own professional misconduct. Not all states recognize the PLLC business form.

Some State laws generally require PLLCs to maintain generous insurance policies or cash reserves to pay claims brought against the corporation.

PLLCs are formed in a similar manner to standard corporations and LLCs by filing formation papers with the appropriate state agency and paying the necessary filing fee.

• Professional Corporations And Professional Associations

Professional corporations (PCs) and Professional Associations (PAs) are specialized entities organized and operated solely by licensed professionals such as attorneys, accountants, and architects. The shareholders of a PC or PA may enjoy personal liability protection from the acts of other shareholders, but each shareholder remains liable for his or her own professional misconduct.

Not all states recognize the PC or PA business form.  Some State laws require PCs and PAs to maintain minimum amounts of professional insurance or cash reserves to pay claims brought against the corporation or association.

PCs and PAs are formed in a similar manner to standard corporations and LLCs, by filing formation papers with the appropriate state agency and paying the necessary filing fee.

• Nonprofit Corporation

A nonprofit corporation is an entity formed for purposes of pursuing a matter of public concern for non-commercial purposes. Nonprofit corporations are authorized by different statutes than standard for-profit corporations; however, the process of forming a nonprofit is closely parallel. Nonprofit corporation organizers must file nonprofit articles of incorporation or a certificate of incorporation with the appropriate state agency and pay the required filing fee. The formation documents must include certain clauses and information, such as a very detailed business purpose statement, in order for the entity to qualify for tax-exempt status.

To pursue tax-exempt status, nonprofits must apply for federal and state (if applicable) tax-exempt status. Tax-exempt status is not automatically granted upon formation. To apply for federal tax-exempt status, a nonprofit must file Form 1023 with the IRS. For state requirements, it is best to contact the department responsible for taxation in the non-profit state of formation.
Like standard for-profit corporations, nonprofits provide limited liability protection. The personal assets of the directors, officers and members typically cannot be used to satisfy the debts and liabilities of the nonprofit.

The most common type of nonprofit is the 501(c)(3), meaning it is formed in compliance with Section 501(c)(3) of the Internal Revenue Code. These nonprofits are organized and operate for a religious, educational, charitable, scientific, literary, testing for public safety, fostering of national or international amateur sports, or prevention of cruelty to animals or children purpose as permitted under this section of the Internal Revenue Code. Nonprofits may also be formed for other purposes pursuant to different sections of the Internal Revenue Code. For example, business leagues, chambers of commerce, and real estate boards are formed under Section 501(c)(6) of the Internal Revenue Code, and a cooperative hospital service organization is formed under Section 501(e).
 

Step 2:  Federal, State, Austin and Employment Tax Responsibilities

An equally important step in the development of your business is your determine and comply with the various overlapping tax responsibilities of your new business. The following information will guide you to the appropriate Federal, State and Austin agencies who administer business taxes.

(i)  Federal Tax

The Internal Revenue Service (IRS) governs all things related to tax collection at the federal level. In addition, the IRS provides a wealth of business tax related information for small business owners. Simply click on the link below and you will soon be on your way to understand your federal tax responsibilities.

Internal Revenue Service

The local IRS Taxpayer Assistance Center provides walk in face-to-face assistance.

(ii)  State Tax

Some states impose a state income tax upon businesses.  All states have sales and use taxes that can apply to businesses.  In some states the agency handling such taxes is referred to as the Department of Revenue.  In Texas there is no personal income tax and technically no corporation income tax, although corporations are subject to a franchise tax that basically applies to corporations with more than a million dollars in assets or more than a million dollars in annual gross revenues.  The franchise tax is very low even in the situations where it does apply.  The Texas Comptroller of Public Accounts is the agency responsible for the administration and collection of the franchise tax and state and local sales tax for businesses operating in the State of Texas.  The following link provides an informative guide that will educate you on the what, when, where, why and how of sales and franchise taxes. Texas Comptroller of Public Accounts 111 East 17th Street Austin, Texas 78711 512-463-4600 or 800-252-5555

(iii)  City Taxes

In some states city income taxes exist along with city and/or county sales taxes, personal property taxes, and other fees.  Texas has no city income taxes.  However, most cities or counties will impose city and/or county sales taxes and a business personal property tax upon businesses that own tangible personal property and use that property to produce income.

(iv)  Employment Tax

Internal Revenue Service - Provides specific information regarding your federal employment tax responsibilities.

Texas Workforce Commission - Provides specific information regarding your state and local employment tax responsibilities.

Step 3: Business Licenses and Permits by Business Type

According to Texas Wide Open for Business, the State of Texas does not require a general "business" license; however, there are a number of regulatory agencies that have licensing and permitting requirements based on the type of service, or products associated with your business.  To ensure that all permitting requirements are met, you should contact the local county and/or city government in which you plan to conduct business to determine if there are any additional requirements.  To determine state occupational licensing and permitting requirements, please visit the Texas Department of Licensing and Regulation (TDLR), specifically the TDLR Licensed Programs tab, for more information.  Other states and many cities and/or counties, including Texas, do often require a general business license be obtained from the local city and/or county administration building or clerk’s office.

Step 4: Business Employer Requirements

Texas Wide Open for Business section on employer requirements is a one stop shop for small business owners. The information provided will help entrepreneurs understand and comply with federal and state employer requirements.  There are a number of labor, safety, and reporting laws relating to employment of personnel, thus it is vitally important for small business owners to increase their knowledge and ensure they are in compliance. Click here for more information.  Additionally, the Texas Workforce Commission publishes a great resource for employers. The Especially for Texas Employers is a step by step guide that walks employers and employees thru every aspect of Texas employment law.

Step 5:  Workers Compensation

Workers’ compensation is a state-regulated insurance system that provides covered employees with income and medical benefits if they are injured on the job or have a work-related injury or illness.  Except in cases of gross negligence, workers’ compensation insurance limits an employer’s liability if an employee brings suit against the employer for damages.  In Texas, unlike in most other states, private employers can choose whether or not to carry workers’ compensation insurance coverage.  Visit Texas Department of Insurance for more info. 

Note:  That the failure to carry workers compensation insurance means the business/employer has additional potential liabilities not and the loss of some defenses in situations where an employee is injured on the job.  A business should not elect to do without workers compensation insurance without first consulting a qualitied business attorney.

Note: New business owners should always seek the guidance of a professional tax and business lawyer.  A business attorney can verify all legal requirements are met before operating a businessa, and make sure the structure of the business and the agreements between the owners of the business provide for smooth operations well into the future in a manner that allows for the non-judicial resolution of disputes between the owners, etc.  A little effort now can save you a lot later!

Formation Lawyers Working Hard to Meet Your Goals

We know that you want to find a solution to your legal concerns as quickly and affordably as possible. And we're here to help. We will be your strongest advocate at every stage.

Call 512-481-2886 or e-mail usto schedule a consultation. We will listen to your concerns and give you our honest opinion about your case.

For help with your legal needs contact a business, tax, and health care law attorney at the offices of AttorneyBritt.

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