Renting out your vacation home brings tax complications.

If you rent out your vacation home for 15 days or more, you must report the income.  But exactly what expenses you can deduct depends on whether the home is classified as a rental property for tax purposes, based on the amount of personal vs. rental use. Adjusting your personal use — or the number of days you rent it out — might allow the home to be classified in a more beneficial way.

With a rental property, you can deduct rental expenses, including losses, subject to the real estate activity rules. You can’t deduct any interest that’s attributable to your personal use of the home, but you can take the personal portion of property tax as an itemized deduction.

With a nonrental property, you can deduct rental expenses only to the extent of your rental income. Any excess can be carried forward to offset the rental income in future years. You also can take an itemized deduction for the personal portion of both mortgage interest and property taxes.

We can help you determine how your vacation home rental will affect your tax bill — and whether there are steps you can take to reduce the impact. Please contact kayla.payne@hawcpa.com if you have questions about your rental property.

Habif, Arogeti & Wynne, LLP

Could your frequent flyer miles be taxable?

 

Now is the time of year when many American are using the frequent flyer miles they’ve built up from work-related travel or credit card rewards programs to take the family on a nice vacation. If you’re among them, you may be wondering if those miles could be taxable.

Fortunately, in most cases the answer is “no.” As a general rule, miles awarded by airlines for flying with them are considered nontaxable rebates, as are miles awarded for using a credit or debit card.

But there are exceptions, so it’s a good idea to review your awards for potential tax liability. Types of miles awards the IRS might view as taxable include miles awarded as a prize in airline sweepstakes and miles awarded as promotions. The value of the miles for tax purposes generally is their estimated retail value.

If you’re concerned you’ve received mile awards that could be taxable, please contact kayla.payne@hawcpa.com and we’ll help you determine your tax liability, if any.

Habif, Arogeti & Wynne, LLP

TiE Atlanta Members Offer Springboard for Promising Startups

TiE Atlanta Angel Investors Actively Support Local

Entrepreneurs Through Mentoring, Early-Stage Investment

ATLANTA, GA – A number of active investors within TiE Atlanta, a nonprofit venture dedicated to the entire lifecycle of the entrepreneur, are focusing their considerable influence locally and offering entrepreneurs direct exposure to both experience and investment.
TiE Atlanta is devoted to entrepreneurs in all industries, at all stages, from incubation, throughout the entrepreneurial lifecycle. With a global reach and a local focus, the heart of TiE Atlanta’s efforts lies in its five foundational programs, or “Pillars,” each of which offers entrepreneurs, at every phase of development,exactly what is most needed at that stage. For many, what is needed is investment, and that’s where the Angels of TiE Atlanta come in.
“There are a lot of opportunities in Atlanta – talented entrepreneurs with great ideas,” said Sig Mosley, Managing Partner at Mosley Ventures, LLC. “It’s exciting to see the investment that is being made by members of metro Atlanta’s entrepreneurial ecosystem into promising start up ventures in the community, just when they need it most.”
This year, TiE Atlanta Charter Member, Adam Ghetti with Ionic Security, had a successful fund raise from Silicon ValleyVenture Fund, Kleiner Perkins, while at the same time, Tom Hawkins, also a Charter Member, celebrated the first close of his venture fund, Forte Ventures.  Many of the Angels of TiE Atlanta have been active as investors and advisors in several other companies including TripLingo andCodeGuard, both Atlanta-based ventures. Merrick Furst, the Founder of Georgia Tech’s Flashpoint, a first-of-its-kind startup engineering studio that develops and produces exceptional technology startup companies, is also actively engaged as an early-stage investor in support of both former and current participants.
These Angels of TiE Atlanta are part of a Special Interest Group within TiE’s local chapter. Comprised of charter members and representing a successful group of entrepreneurs and executives, this group of individuals is intent on fostering entrepreneurship and the entrepreneurial spirit. TiE Angels Atlanta is part of a global network that is taking TiE’s commitment to the next generation of entrepreneurs to a new level. “TiE Angels is eager to dramatically increase the success of entrepreneurs in our ecosystem,” said Palaniswamy ‘Raj’ Rajan, President of TiE Atlanta. “From mentoringand on-going advice, to making introductions and investments, TiE Angels are here to help.”
Charter member mentors – active and accredited investors in the Metro Atlanta community – encourage entrepreneurs to pitch their ideas for consideration. Subsequent investment offers a springboard for entrepreneurs to bring their ideas to life. Opportunities for pitching are available prior to monthly meetings. To inquire or to apply, please contact Katie Elizabeth at Katie@tie-atlanta.

Habif, Arogeti & Wynne, LLP Continues to Grow; Expands Accounting Resources and International Practice

Habif, Arogeti & Wynne, LLP, the largest Georgia-headquartered tax, accounting and business advisory firm, announced today that Ramon Scheffer has joined the Firm as Director of Financial Reporting Advisory Services.

http://www.prweb.com/releases/2013/7/prweb10937098.htm

Employers given another year to get into compliance with the health care act’s “play or pay” provision

The Patient Protection and Affordable Care Act of 2010’s shared responsibility provision, commonly referred to as “play or pay,” was scheduled to take effect January 1, 2014. But on July 2, the U.S. Treasury announced that the effective date would be delayed one year, to January 1st, 2015. IRS guidance will be issued providing more details and perhaps additional charges.

The original provision:

• In some cases imposes nondeductible penalties (generally $2,000 per full-time employee) on “large employers” that don’t offer coverage that is “unaffordable” or that doesn’t provide “minimum value,” and
• Defines a “large employer” as one with at least 50 full-time employees, or a combination of full-time and part-time employees that’s “equivalent” to at least 50 full-time employees.

The rules are complex, and the new IRS guidance is expected to clarify – and perhaps simplify – them.

Please contact kayla.payne@hawcpa.com to keep you in touch with the latest information and to determine how your company can be affected.

Kids going to day camp? You may be eligible for a tax credit

Day camp is a qualified expense under the child or dependent care credit, which is worth 20% of qualifying expenses (more if your adjusted gross income is less than $43,000), subject to a cap.

For 2013, the maximum expenses allowed for the credit are $3,000 for one qualifying child and $6,000 for two or more.

The credit’s value had been scheduled to drop in 2013, but the American Taxpayer Relief Act of 2012 made higher limits permanent.

Be aware, however, that overnight camp costs don’t qualify for the credit.

A wide variety of tax breaks are available to parents. If you’d like to learn more, please contact us at kayla.payne@hawcpa.com

www.hawcpa.com

GSC Packaging named ACG Atlanta’s Middle-Market Fastest Growing Company

HA&W client, GSC Packaging, was named ACG Atlanta’s Middle-Market Fastest Growing Company last week.

Congratulations to GSC Packaging!

And congratulations to all of the HA&W clients that were honored at the event.

HA&W International Services

HA&W specializes in international taxation and audit business matters like, transfer pricing, international taxation, cross-border transactions, International Financial Reporting Standards (IFRS) and establishing appropriate business structures in new markets.  To grow and be successful, every day global businesses rely on advice and insights from our professionals.

http://www.hawcpa.com/services/specialty-consulting-services/expanding-your-business-globally

Voice Your Support for the Angel Investor Tax Credit Extension!

Voice Your Support for the Angel Investor Tax Credit Extension!

HB 272 extends tax credit through 2015 and supports technology start-ups

Voice your support through and email to legislators about the HB 272, the Angel Investor Tax Credit extension. HB 272 extends the credit, which is set to expire at the end of 2013, through 2015.
Click the link below to take action!

http://capwiz.com/techvoice/ga/issues/alert/?alertid=62422661&queueid=[capwiz:queue_id]