Rules just issued by the Treasury Department give a one-year extension to the health insurance mandate for mid-sized businesses. Companies with 50 to 99 employees will now have until January 1, 2016, to provide health insurance for employees or face penalties. Employers must certify that they have not cut workers in order to come under the 100 employee threshold. Companies with 100 or more employees must still meet the January 1, 2015, deadline for providing health insurance coverage.

There are several sources of revenue that are not subject to income tax.

Here are the most common sources of money that are not taxed on your federal income tax return:

* Borrowed money, such as from banks or personal loans.

Have you acquired gold as an investment hedge the last few years?

Watch out for a tax whammy. Gold is subject to a special long-term capital gains rate, significantly higher than the usual rate!  In fact, depending on your situation, a long-term capital gain resulting from the sale of gold could trigger a tax rate almost double the rate you’re paying on your other long term gains.

Emergency savings: How much is enough?

We all need an emergency fund, but what's considered "an emergency?" Any unexpected hit to your finances, including layoffs, unanticipated illnesses, and natural disasters. Car insurance premiums and regular home maintenance are (or should be) anticipated, so they're not emergencies. The same is true of credit card bills for vacations and visits to the dentist's office. An emergency fund is designed to keep your life intact during temporary setbacks and to help you avoid unnecessary debt.

How much emergency savings is enough?

Health insurance tax credits are good medicine for small businesses

Small businesses may be missing out on an important new tax perk related to health insurance. And the stakes are even higher in 2014.

Rule for deducting medical expenses has changed

You may be familiar with the old tax rule that let you take an itemized deduction for unreimbursed medical expenses that exceeded 7½% of your adjusted gross income. For 2013 and future years, the income threshold increases to 10% for taxpayers under age 65. Those 65 and older may continue to use the 7½% threshold through the year 2016.

As always, should you have any questions or concerns regarding your situation please feel free to call.

DiSabatino CPA
651 Via Alondra, Suite 715
Camarillo, CA 93012

Phone: 805-389-7300

Equipment write-off decreases for 2014

In recent years, businesses could expense up to $500,000 of equipment purchases in the year of purchase, with a $2,000,000 annual purchase limit. In addition, bonus depreciation was allowed for new equipment purchases.

Your grandson needs a car, but cannot afford the payments. As a favor, you provide the $25,000 to purchase the car. You tell your grandson to pay you back when he can, but there is no loan document. The IRS sees this payment during an audit and asks you where your interest income is for this loan. Should this happen, you will quickly understand the meaning of AFRs.

Each month the IRS publishes a series of tables known as AFRs. So what are they and why should you care?

Lock in write-offs at assisted living facilities

Suppose that a family member has to move into an assisted living facility (ALF). Although nursing expenses are generally deductible as medical expenses, the lines can get blurred.

If you're short on cash to fund an IRA contribution this year, Uncle Sam may effectively lend you the money.

Capitalization vs. expensing

The new IRS regulations on capitalization vs expensing are complex. But the part of the regulations that concerns most small businesses makes it easier for them to comply.

Here's an overview of the safe harbor rules for small businesses.

Are you considering donating an organ?  Although this is a very benevolent decision, currently, the federal government doesn't offer any tax deduction or credit for donating organs, such as kidneys to charity... but there is more...

Pay more to fly. Beginning July 1, airline passengers will face higher fees. The Congressional budget agreement raises the aviation passenger security fee on travelers from $2.50 for each flight leg to a flat charge of $5.60 per one-way trip. This amounts to as much as an extra $6.20 for a round-trip nonstop flight, but just $1.20 more if a passenger changes planes on the inbound and outbound legs

Room for improvement. A new report says the IRS needs to improve efficiency for telephone and correspondence services. According to the Government Accountability Office (GAO), access to the IRS telephone help in 2013 remained at 68%, the same as it was in 2012. Also, unanswered paper correspondence that was more than 45 days old increased to 47% in 2013, up from 40% in 2012. (GAO-14-133, Dec. 2013)

IRS, phone home? The IRS is testing a program that allows staffers to access work email and other services on their personal smartphones. But the idea is not without risk. A new report from Treasury Inspector General for Tax Administration (TIGTA) points out that additional security is needed and recommends a thorough cost analysis to determine if the IRS should move forward with this concept. (TIGTA Ref. No. 2013- 20-108, 9124113)

For the first time, the IRS is reporting that it will be comparing filed 1099-Ks against income reported on business tax returns (including those reported on 1040 Schedule C tax returns). Knowing how this impacts you can save you an unwanted IRS correspondence audit.

While taxes owed are always due on or before the filing date of April 15^th, taxpayers have the option of filing a tax extension that effectively moves their filing date to October 15^th. Is this ever a good thing to do? Sometimes the answer is yes.

California—Income Tax: FTB Warns Taxpayers of New Scams

The California Franchise Tax Board (FTB) reminds income taxpayers to be wary of theft ploys involving scammers attempting to mimic the FTB to obtain access to personal information. The FTB has heard from taxpayers who received phone calls from scammers impersonating the Internal Revenue Service, telling the individuals that they owed taxes, and that if the taxes were not paid they would be arrested. These taxpayers were also told that the state of California would do the same.

Deduct those start-up costs NOW!

If you started a new business venture in 2013, you may be in line for a special tax break for entrepreneurs.

DO THIS: Realize a fast write-off for "start-up costs." Normally, these business-related costs must be amortized over time, but you can take a current deduction for up to $5,000 of the qualified expenses.

Too many taxpayers assume they are not required to file a tax return and end up losing a potential refund. To help ensure this does not happen to you, here are some common things to help you decide whether a review of your situation is in order.

1. Know the triggers. You are required to file a tax return based on your income, filing status, and age. If your income is above the amounts below, you are generally required to file a tax return.