Entries by Doherty & Associates

Roth IRA’s

Roth IRA’s Roth IRA’s are individual retirement accounts that are subject to the same rules as a traditional IRA with some major distinctions. Roth IRA contributions are not deductible. Qualified distributions are not taxable. You can continue to make contributions after you reach age 70½. There are no required minimum distributions. Who can contribute? You […]

Repairs or Improvements – the new tangible property regulations for small business.

The IRS has released the final regulations, effective January 1, 2014, that govern when you must capitalize and when you can deduct expenses related to tangible property. Here we will discuss some of the provisions for small businesses (generally those without audited financial statements). Generally you should assume that all tangible property, except inventory, must […]

Can’t Pay Your Tax Balance?

You just received you tax return and can’t pay the balance due in full.  What do you do? FILE YOUR RETURN ON TIME.  This avoids the penalties for late filing. RESPOND TO ALL NOTICES.  “Do Not” ignore the taxing authorities. Pay as much as you can when you file the return.  The outstanding balance is […]

What is the Alternative Minimum Tax?

What is the Alternative Minimum Tax? In 1969 the Alternative Minimum Tax was enacted to assure that the rich pay at least a minimum amount of tax.  This is accomplished in a number of ways. The first is by eliminating certain deductions. Some of these are: Taxes Miscellaneous itemized deductions Personal exemptions The second is […]

Tuition Tax Incentives

There are several tax incentives in the form of credits and deductions currently available to help offset ever increasing higher education expenses for you, your spouse, and dependents. Tax Credits Currently there are two tax credits available. The first is the American Opportunity Tax Credit.  This credit is available to qualified students for their first […]