Fiala CPA

IR-2015-137, Dec 17, 2015 WASHINGTON — The Internal Revenue Service today issued the 2016 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes Beginning on Jan 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 54 cents per mile for business miles driven, down from 57 5 cents for 2015 19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015 14 cents per mile driven in service of charitable organizations The business mileage rate decreased 3 5 cents per mile and the medical, and moving expense rates decrease 4 cents per mile from the 2015 rates The charitable rate is based on statute The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile The rate for medical and moving purposes is based on the variable costs Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical or charitable expense are in Rev Proc 2010-51 Notice 2016-01 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate

Tips from IRS for Year-End Gifts to Charity

• IRS Warns Consumers of Possible Scams Relating to South Carolina Flood Victim Relief WASHINGTON ― The Internal Revenue Service today issued a consumer alert about possible fake charity scams emerging due to severe flooding this month in South Carolina and neighboring states
• “When making donations to assist flood victims in South Carolina and elsewhere, taxpayers should take steps to ensure their hard-earned money goes to legitimate and currently eligible charities,” said IRS Commissioner John Koskinen
• “IRS
• gov has the tools taxpayers need to check out the status of charitable organizations
• ” Following major disasters, it is common for scam artists to impersonate charities to get money or private information from well-intentioned taxpayers
• Such fraudulent schemes may involve contact by telephone, social media, email or in-person solicitations
• The IRS cautions people wishing to make disaster-related charitable donations to avoid scam artists by following these tips: To help disaster victims, donate to recognized charities
• Be wary of charities with names that are similar to familiar or nationally known organizations
• Some phony charities use names or websites that sound or look like those of respected, legitimate organizations
• The IRS website at IRS
• gov has a search feature, Exempt Organizations Select Check, through which people may find legitimate, qualified charities; donations to these charities may be tax-deductible
• Legitimate charities may also be found on the Federal Emergency Management Agency (FEMA) website at fema
• gov
• Don’t give out personal financial information — such as Social Security numbers or credit card and bank account numbers and passwords — to anyone who solicits a contribution from you
• Scam artists may use this information to steal your identity and money
• Don’t give or send cash
• For security and tax record purposes, contribute by check or credit card or another way that provides documentation of the gift
• If you plan to make a contribution for which you would like to claim a deduction, see IRS Publication 526, Charitable Contributions, to read about the kinds of organizations that can receive deductible contributions
• Bogus websites may solicit funds for disaster victims
• Such fraudulent sites frequently mimic the sites of, or use names similar to, legitimate charities, or claim to be affiliated with legitimate charities in order to persuade members of the public to send money or provide personal financial information that can be used to steal identities or financial resources
• Additionally, scammers often send email that steers the recipient to bogus websites that appear to be affiliated with legitimate charitable causes
• Taxpayers suspecting disaster-related frauds by email should visit IRS
• gov and search for the keywords “Report Phishing
• ” More information about tax scams and schemes may be found at IRS
• gov using the keywords “scams and
• Read More

IRS Warns Consumers of Possible Scams Relating to South Carolina Flood Victim Relief

WASHINGTON ― The Internal Revenue Service today issued a consumer alert about possible fake charity scams emerging due to severe flooding this month in South Carolina and neighboring states “When making donations to assist flood victims in South Carolina and elsewhere, taxpayers should take steps to ensure their hard-earned money goes to legitimate and currently eligible charities,” said IRS Commissioner John Koskinen “IRS gov has the tools taxpayers need to check out the status of charitable organizations ” Following major disasters, it is common for scam artists to impersonate charities to get money or private information from well-intentioned taxpayers Such fraudulent schemes may involve contact by telephone, social media, email or in-person solicitations The IRS cautions people wishing to make disaster-related charitable donations to avoid scam artists by following these tips: To help disaster victims, donate to recognized charities Be wary of charities with names that are similar to familiar or nationally known organizations Some phony charities use names or websites that sound or look like those of respected, legitimate organizations The IRS website at IRS gov has a search feature, Exempt Organizations Select Check, through which people may find legitimate, qualified charities; donations to these charities may be tax-deductible Legitimate charities may also be found on the Federal Emergency Management Agency (FEMA) website at fema gov Don’t give out personal financial information — such as Social Security numbers or credit card and bank account numbers and passwords — to anyone who solicits a contribution from you Scam artists may use this information to steal your identity and money Don’t give or send cash For security and tax record purposes, contribute by check or credit card or another way that provides documentation of the gift If you plan to make a contribution for which you would like to claim a deduction, see IRS Publication 526, Charitable Contributions, to read about the kinds of organizations that can receive deductible contributions Bogus websites may solicit funds for disaster victims Such fraudulent sites frequently mimic the sites of, or use names similar to, legitimate charities, or claim to be affiliated with legitimate charities in order to persuade members of the public to send money or provide personal financial information that can be used to steal identities or financial resources Additionally, scammers often send email that steers the recipient to bogus websites that appear to be affiliated with legitimate charitable causes Taxpayers suspecting disaster-related frauds by email should visit IRS gov and search for the keywords “Report Phishing ” More information about tax scams and schemes may be found at IRS gov using the keywords “scams and

IRS Provides Tax Relief to South Carolina Flood Victims; Oct. 15 Tax Deadline Extended to Feb. 16

• Ten Things to Know about Farm Income and Deductions IRS Tax Tip If you earn money managing or working on a farm, you are in the farming business
• Farms include plantations, ranches, ranges and orchards
• Farmers may raise livestock, poultry or fish, or grow fruits or vegetables
• Here are 10 things about farm income and expenses that the IRS wants you to know
• Crop insurance proceeds
• Insurance payments from crop damage count as income
• They should generally be reported the year they are received
• Deductible farm expenses
• Farmers can deduct ordinary and necessary expenses as business expenses
• An ordinary farming expense is one that is common and accepted in the farming business
• A necessary expense is one that is appropriate for that business
• Employees and hired help
• You can deduct reasonable wages you paid to your farm’s full and part-time workers
• You must withhold Social Security, Medicare and income taxes from your employees’ wages
• Items purchased for resale
• If you purchased livestock and other items for resale, you may be able to deduct their cost in the year of the sale
• This includes freight charges for transporting livestock to your farm
• Repayment of loans
• You can only deduct the interest you paid on a loan if the loan proceeds are used for your farming business
• You cannot deduct interest on a loan used for personal expenses
• Weather-related sales
• Bad weather may force you to sell more livestock or poultry than you normally would
• If so, you may be able to postpone reporting a gain from the sale of the additional animals
• Net operating losses
• If deductible expenses are more than income for the year, you may have a net operating loss
• You can carry that loss over to other years and deduct it
• You may get a refund of part or all of the income tax you paid for past years, or you may be able to reduce your tax in future years
• Farm income averaging
• You may be able to average some or all of the current year’s farm income by spreading it out over the past three years
• This may lower your taxes if your farm income is high in the current year and low in one or more of the past three years
• This method does not change your prior year tax
• It only uses the prior year information to figure your current year tax
• Fuel and road use
• You may be able to claim a tax credit or refund of federal excise taxes on fuel used on your farm for farm work
• Farmers Tax Guide
• More information about farm income and deductions is in Publication 225, Farmer’s Tax Guide
• You can download it at IRS
• gov, or call the IRS at 800-TAX-FORM (800-829-3676) to have it mailed to
• Read More

Ten Things to Know about Farm Income and Deductions

IRS Tax Tip If you earn money managing or working on a farm, you are in the farming business Farms include plantations, ranches, ranges and orchards Farmers may raise livestock, poultry or fish, or grow fruits or vegetables Here are 10 things about farm income and expenses that the IRS wants you to know Crop insurance proceeds Insurance payments from crop damage count as income They should generally be reported the year they are received Deductible farm expenses Farmers can deduct ordinary and necessary expenses as business expenses An ordinary farming expense is one that is common and accepted in the farming business A necessary expense is one that is appropriate for that business Employees and hired help You can deduct reasonable wages you paid to your farm’s full and part-time workers You must withhold Social Security, Medicare and income taxes from your employees’ wages Items purchased for resale If you purchased livestock and other items for resale, you may be able to deduct their cost in the year of the sale This includes freight charges for transporting livestock to your farm Repayment of loans You can only deduct the interest you paid on a loan if the loan proceeds are used for your farming business You cannot deduct interest on a loan used for personal expenses Weather-related sales Bad weather may force you to sell more livestock or poultry than you normally would If so, you may be able to postpone reporting a gain from the sale of the additional animals Net operating losses If deductible expenses are more than income for the year, you may have a net operating loss You can carry that loss over to other years and deduct it You may get a refund of part or all of the income tax you paid for past years, or you may be able to reduce your tax in future years Farm income averaging You may be able to average some or all of the current year’s farm income by spreading it out over the past three years This may lower your taxes if your farm income is high in the current year and low in one or more of the past three years This method does not change your prior year tax It only uses the prior year information to figure your current year tax Fuel and road use You may be able to claim a tax credit or refund of federal excise taxes on fuel used on your farm for farm work Farmers Tax Guide More information about farm income and deductions is in Publication 225, Farmer’s Tax Guide You can download it at IRS gov, or call the IRS at 800-TAX-FORM (800-829-3676) to have it mailed to

Peace of Mind - Stress Free Our accounting and tax firm was founded by Stanley Fiala in 1976 Stephen Fiala joined the firm in Mesa, Arizona in 1991 and is currently running the day to day operations Stanley J Fiala is now retired Stephen is a member of the American Institute of Certified Public Accountants, Arizona CPA Society and The Arizona Farm Bureau Federation

The Service you will receive at Fiala CPA will be personal and one on one with Stephen Fiala When you call our office, you will talk to a live person and will not be pressing buttons to reach our CPA We understand that each of our clients are unique with different needs which is why we take the time to get to know you and/or your business Whether you are coming to us for individual or business taxes, or for business consulting or financial planning, you will receive our undivided attention

1921 S Alma School Rd , #103 Phone (480) 831-5140     Fax (480) 897-9332 Tax time can be a very stressful time for many At Fiala CPA, we strive to bring you optimal results making sure you receive all of the deductions you deserve and we provide you with tax planning for the next year A big part of receiving optimal results at tax time involves tax planning With tax planning, there will be no surprises for you on your taxes They will turn out the way you expect them to turn out as long as we are notified of any changes that take place in your income or your life that would affect your tax liability

There are many people that use Turbo Tax and other Tax Software programs each year The problem with this is you have to know which deductions you are entitled to in order to receive them and you have to put the appropriate information in the right areas in order for it to be accurate Also, with Turbo Tax and other Tax Software programs, you don’t get to sit down with a tax professional and do your tax planning for the next year

Call our office for the personalized attention you deserve We have over 35 years of experience and lots of happy clients too

• Tax Info on Scholarships, Fellowship Grants and Other Grants
• Posted by Fiala CPA on Feb 16, 2016
• Where’s My Refund? Posted by Fiala CPA on Jan 28, 2016
• 2016 Standard Mileage Rates for Business, Medical and Moving Announced
• Posted by Fiala CPA on Dec 29, 2015
• Tips from IRS for Year-End Gifts to Charity
• Posted by Fiala CPA on Dec 3, 2015
• IRS Warns Consumers of Possible Scams Relating to South Carolina Flood Victim Relief
• Posted by Fiala CPA on Oct 14, 2015 The page you requested could not be found Try refining your search, or use the navigation above to locate the post