If a taxpayer makes a contribution to a charitable organization of $250 or greater, they must substantiate the contribution with a contemporaneous written acknowledgment of the contribution by the done organization, if they want the deduction to be claimed on a tax return. For donations of money, the donee’s written acknowledgment must state the amount  Continue Reading »

The IRS takes a strict position on travel and entertainment (T&E) deductions, and there’s a good chance an agent will take a hard look at those items if you claim them on your tax return and you’re audited. The challenge will be more focused on whether you kept the proper records than whether or not  Continue Reading »

Donations from a will may not actually get to your organization for some time because of probate and estate administration. That raises the issue of what value and what date to use in issuing the official tax receipt. When a will contains a gift in kind to be donated, the timing for when the organization actually receives  Continue Reading »

The IRS recently published a series of press releases to make tax payers aware of the “dirty dozen” tax scams for this year. The list is not entirely surprising, but it’s important to note that these scams have become increasingly technology-driven in recent years. Taxpayers can use this list to avoid becoming the victim or  Continue Reading »

Many of us have bought stock in a company that later failed over the years. While you may prefer to forget such an investment, don’t forget to claim your rightful capital loss deduction on your tax return. But beware that figuring out when to claim a worthless stock loss can be tricky. Here are the two ways  Continue Reading »

Tax Day is right around the corner for Maine businesses and individuals, and the filing deadline to submit 2015 individual federal income tax returns is Monday, April 18, 2016, rather than the traditional April 15 date. Washington, D.C., will celebrate Emancipation Day on Friday, April 15, which pushes the deadline to the following Monday for most  Continue Reading »

One of the largest investments you’ll ever make is attending college or graduate school, and spring is the time schools typically announce who’s made the cut. If you (or your child) plan to attend an institute of higher learning in the fall, May 1 is often the deadline for selecting a school. Finances are a  Continue Reading »

The tax elections you make on your 2015 personal tax return can be extremely important to your financial welfare. Here’s a list of 10 potential elections for individuals (including self-employed taxpayers) to consider making before tax day on April 18, 2016 (or April 19 for taxpayers in Maine and Massachusetts due to their Patriot’s Day  Continue Reading »

The research credit is looking good for some small Maine companies, and it’s back for good. The Protecting Americans from Tax Hikes (PATH) Act of 2015, signed into law by the president on December 18th, does much more than extend this credit. Under the PATH Act, the research credit is restored retroactive to January 1, 2015,  Continue Reading »

Health Savings Accounts (HSAs) allow individuals and businesses to buy less expensive health insurance policies with high deductibles, and contributions to the accounts are made on a pre-tax basis. The money can accumulate year after year tax free, and be withdrawn tax free to pay for a variety of medical expenses such as doctor visits, prescriptions,  Continue Reading »