2018 Tax Brackets

What the 2018 tax brackets, standard deductions look like under tax reform 2018 Income Tax Brackets: Old Rate New Rate Individuals Married Filing Jointly 10% 10% Up to $9,525 Up to $19,050 15% 12% $9,526 to $38,700 $19,051 to $77,400 25% 22% 38,701 to $82,500 $77,401 to $165,000 28% 24% $82,501 to $157,500 $165,001 to […]

The 2015 tax extenders legislation — the PATH Act — what is this?

On December 18, the Senate passed the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act). Many popular tax breaks had expired December 31, 2014, so for them to be available for 2015, Congress had to pass legislation extending them. But the PATH Act does more than that. I am here to explain […]

Tender Hearts Participates in 7th Annual Delaware Mud Run

Tender Hearts is proud to participate in the Seventh Annual Delaware Mud Run to support Leukemia Research. This team is going down and dirty in the mud to help raise money for cancer warriors. Get yourself on board by supporting this team! We appreciate your support! Date: Sunday September 20, 2015 Location: Frightland - Middletown, DE […]

Vote for Doherty & Associates

 A Happening List badge for your website - See more at: http://northdelawhere.happeningmag.com/happeninglist/frequently-asked-questions/#sthash.KOtpXCVw.dpuf Voting is at this link: http://northdelawhere.happeningmag.com/happeninglist/people-accountantcpa-2015/ Once you’re at this link to VOTE–> Click on the people image and look for Accountant/CPA. Voting ends February 28, 2015 at 11:59pm. Note:  Voters will need to provide a VALID email address. If that email address is found to be […]

Can’t Pay Your Tax Balance?

Can’t Pay Your Tax Balance? Your 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 […]

Traditional Individual Retirement Accounts (IRA’s)

Traditional Individual Retirement Accounts (IRA’s) Who can contribute? You can open and contribute to a traditional IRA if: You have taxable compensation, and Are under age 70½ at the end of the year Taxable compensation is generally what you earn from working. This includes wages, salaries, tips, income from self-employment, and other amounts received for […]

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 […]

How are Children Taxed? The Kiddie Tax on Investment Income.

There are a set of rules that apply to the taxation of children and investment income.  This set of rules is known as the Kiddie Tax.  The Kiddie Tax applies to children with investment (unearned) income who are under age 19 or under age 24 and a full-time student.  For purposes of this discussion, we […]

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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 […]

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Are you taking advantage of the tax deductions on your settlement sheet?

If you are a landlord, most items on a settlement sheet have to be capitalized and amortized over the life of the mortgage, however: Interest expense from the time of settlement until your first mortgage payment is deductible. The amounts that you reimburse the seller for property taxes, utilities, homeowner’s association dues, etc. are deductible […]

Can you claim the small employer health insurance tax credit?

The small employer health insurance tax credit was enacted as part of the Patient Protection and Affordable Care Act (Obamacare).  The purpose of this part of the law is to help small employers defray some of the cost of providing health insurance for their employees. Prior to 2014, employers often found that complex calculations yielded […]

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 […]

Understanding the Home Mortgage Interest Deduction

If you itemize deductions, chances are that you are taking a deduction for home mortgage interest. Here are a few things that you should know: Home acquisition debt is defined as a mortgage used to buy, build or improve either your principal residence or a second home.  It must be secured by the home. You […]

When does a real estate investor become a dealer and what are the consequences?

Well, as with most tax questions, the answer is, it depends. Investor vs. Dealer. When we think of a real estate investor, we think of someone who purchases and holds real estate for rental income and/or appreciation over a period of time.  A typical investor might own a few rental properties, keep them for several […]


Deducting Charitable Contributions

If you itemize deductions, you may deduct contributions of money or property made to the following types of organizations qualified under section 170(c) of the Internal Revenue Code: A state or United States possession, or the United States or the District of Columbia, if made exclusively for public purposes; A community chest, corporation, trust, fund, […]

Taxation of Bitcoins and Other Virtual Currencies

Bitcoin and other virtual currencies are becoming more popular by the day.  Retailers such as Overstock.com are now accepting bitcoin as payment.  As of the end of 2013 it is estimated that over one million people owned bitcoins. In March of this year, the IRS issued Notice 2014-21 which addresses the tax consequences of Bitcoin […]

Are you doing business in more than one state?

If you are contemplating expanding your business into more than your home state, there are several factors to consider. Do I need to register in the other states? The answer to this (like so many other tax questions) is it depends.  If you have a physical presence in another state, e.g. a retail location, then […]

Work Related Educational Expenses as they Relate to Real Estate Investors

Many people who are just getting involved in real estate investing are spending large amounts of money on real estate education classes. The question is not are these classes worthwhile, but whether or not these expenditures are deductible. Several factors must be considered before this question can be answered. Are the expenses “ordinary and necessary” […]

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Can you qualify as a Real Estate Professional?

By law real estate rental is a passive activity. Passive losses are only deducible to the extent that they offset passive income.  Additionally, passive rental income can be subject to the new 3.8% tax on net investment income.  There is a special provision that allows individuals to deduct up to $25,000 of rental losses.  However, this provision […]

The End of Some Deductions & Credits May Affect Your Business!

If you are a business owner, you must be aware of important tax changes that could impact your company finances. While many tax rules are permanent, others are written to expire at some point in the future. Some are extended and given new deadlines, but a significant number of popular “extenders” terminated at the end […]

Doherty & Associates Recognized on PRWeb

PRWeb recently recognized Doherty & Associates for our first fundraiser for The Ronald McDonald House of Delaware. Debria Doherty, Doherty & Associates President & CEO, summarized it best when she said, "It is very heartwarming to offer support to families that are experiencing one of the most traumatic events in their lives. I am very proud of […]

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Work from Home? Consider the Home Office Deduction!

Home offices have been increasingly growing and employees who work at home represent a growing segment of the work force.  If your home office is used exclusively and regularly for business purposes you should be aware that the IRS has created a “simplified option” for calculating the deduction for the business use of your home. […]

Are you Interested in Investing in Real Estate?

If you are interested in investing in real estate, you should attend the “Smart and Clean” Real Estate Investing Event—sponsored by DELREIA on Saturday, Jan 25th, 2014. Go here to watch a short video that explains what the event is all about and how to get registered! Additional details about the event are below. We hope […]

Doherty & Associates First Annual Charity Benefit

As the holidays are winding down and the New Year is upon us, I wanted to take a moment to give a special ‘Thank You’ to those who supported and contributed in Doherty & Associates First Annual Ronald McDonald House of Delaware Charity Benefit last month. Giving back to the community is deeply ingrained in […]

Like it or not, Tax season is upon us!

With tax season in full swing and the April 15 deadline quickly approaching, it is important to stay on top of all relevant tax information so there are no troubles later. Here is a quick recap for this week: The IRS will begin accepting 2013 business returns on January 13, 2014. Individual’s estate and trust […]

Why Form a Delaware Company?

 Why Form a Delaware Company?   More than 900,00 business entities have their legal home in Delaware including more than 50% of all U.S publicly-traded companies and 63% of the fortune 500. Why do these companies choose Delaware?

Affordable Care Act: Individual Tax Implications

There are some changes needed to be aware of in 2013 that took effect because of the Affordable Care Act signed into law March 23, 2010. Some of the most significant changes for individuals are: 

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