Jun. 24th, 2014

Good Ideas for Taxes — Summer!

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1. The cost of sending your children to childcare or summer day camps may result in a tax credit if you and your spouse both work and your dependent children are under age 13.

2. For businesses that hire qualified individuals, age 16 or 17, during the summer months, the IRS offers a tax credit on your return up to $750 per qualified worker.

3. Although the cost of business meals and entertainment is typically limited to 50%, company parties, picnics or similar events for your entire staff can be 100% deductible.

4. Combine summer travel plans with an existing business trip. Even if a few days are for recreational purposes, the costs of all travel to and from your business destination, in addition to all business-related costs while on your trip, may be deductible.

5. While boating on the open waters or trekking across the United States in your RV, remember that you can generally deduct mortgage interest and property taxes paid on a vacation home. Boats and RVs may qualify as a vacation home if they have sleeping quarters, cooking facilities and a bathroom.

To learn more about how good ideas can add up, contact the tax team at Hungerford Nichols:

Brett Karhoff, CPA, MST
Jon Sytsma, CPA, MST
Aaron Sal, CPA, MSA
Jacquelyn Lightcap, CPA
Sos Rowland, CPA, CCIFP

www.hungerfordnichols.com
Phone: (616) 949-3200

 

Our firm provides the information in this post for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.