DiSabatino CPA Blog

Mike DiSabatino CPA

Mike is the founder of the firm of Michael DiSabatino, CPA.  He produces this blog to keep his clients and friends informed of new tax laws, tax saving strategies, as well as, business tips. 

If you have a question or comment for Mike, please use our Contact Form to reach out for us.

The IRS Says "Gotcha!" Late filing of S corporation and partnership returns can be costly

The last couple of years, the IRS has been penalizing late filers of S corporation and partnership tax returns. This despite the fact that late filing of the tax returns (Forms 1120S and 1065), due March 15th, often does not impact the receipt of the taxes due on April 15th. Those that are getting this penalty are often couples and other small firms who have formed these business entities to provide legal protection for their shareholders.

Continue reading
0
  583 Hits

February DiSabatino, CPA Newsletter

news header
February 2020

In this Issue: 

This Month:

  • February 14: Valentine's Day
  • February 17: Presidents' Day
  • Reminders:
    • Collect all tax forms (W-2s, 1099s, others)
    • Set up tax appointment
    • Rebalance investment portfolios

   The 2019 tax filing season is in full swing. If you have not already done so, now is the time to collect your tax forms, organize your records and set a schedule to get your tax return completed.

Deep in the Form 1040 instructions is an annual recap of federal income and how the money is spent. Since most taxpayers no longer see these instructions, a recap of this information is provided here for your review.

Given late breaking tax laws, now is a good time to read a review of how newly passed retirement rules could help you save more. This issue also includes an article with several interesting facts about Valentine’s Day and for small business owners, some information is provided to help your employees navigate the new W-4 paycheck withholding form. 

Please call if you would like to discuss how this information could impact your situation. If you know someone who can benefit from this newsletter, feel free to send it to them.

Continue reading
0
  555 Hits

January DiSabatino, CPA Newsletter

news header

 January 2020

In this Issue: 

This Month: 

  • January 1: New Year's Day
  • January 15: 4th Quarter Estimated Payments Due 
  • January 20: Martin Luther King Jr. Day 
  • Start Tax Planning for the New Year
    • Adjust Withholdings
    • Organize Filing Records
    • Schedule Tax Consultation 
    • Rebalance Investment Portfolio

   Welcome 2020. A new year calls for a fresh look at your financial strategies. Consider how to make the most of your savings accounts — and don't forget you still have time to fund your IRA! You can also try the following fail-proof tricks to keep your New Year's resolutions on track.

Call if you would like to discuss how this information relates to you. If you know someone who can benefit from this newsletter, feel free to send it to them.

Continue reading
0
  544 Hits

December DiSabatino, CPA Newsletter

December 2019

In this Issue:

This Month:

  • December 22: Hanukkah begins
  • December 25: Christmas Day
  • December 26: Kwanzaa begins 
  • January 15: 4th Quarter Estimated Payments Due 
  • Take Final Year-End Actions: 
    • Deductible Gifts 
    • Capital Gains/Losses
    • Charitable Giving 
    • Dividend Income 

   It's almost New Year! Have you done your yearly credit report checkup yet? While you're at it, protect yourself from charity scams this season by reviewing some big red flags, and learn how to prioritize cash flow in your business. 

Call if you would like to discuss how this information relates to you. If you know someone who can benefit from this newsletter, feel free to send it to them.

Continue reading
0
  519 Hits

November DiSabatino, CPA Newsletter

news header

 November 2019

In this Issue:

This Month:

  • November 11: Veterans Day
  • November 28: Thanksgiving
  • November 29: Black Friday (Shopping Deals Day)
  • Reminder: Conduct year-end tax and financial planning

2020 is coming quick — are you prepared? Take stock now and learn about the year-end moves that'll help you save. Plus, consider how the 2020 Social Security changes will affect your plans. And make sure you're hitting the employment tax deadlines.

Call if you would like to discuss how this information relates to you. If you know someone who can benefit from this newsletter, feel free to send it to them.

Continue reading
0
  516 Hits

October DiSabatino, CPA Newsletter

news header

 October 2019

In this Issue: 

This Month:

  • October 1: SIMPLE IRA plan establishment due
  • October 15: Extended individual and C-Corp Tax Return Filing Deadline
  • October 31: Halloween

   Autumn's in full swing, meaning it's time to start preparing for the busy months ahead. You can get ready by learning about the Form 1040 updates you'll see this 2019 tax season, as well as the new Marketplace Facilitator sales tax laws for anyone that sells through Amazon or eBay. You can also brush up on your rights if a bill collector ever harasses you.

Call if you would like to discuss how this information relates to you. If you know someone who can benefit from this newsletter, feel free to send it to them.

Continue reading
0
  448 Hits

How to Maximize Deductions for Assisted Living

It's possible that someone in your family will need assisted living care at some point in their life. This care can be at an assisted living facility, a nursing home, or in their own home. Often, assisted living care is expensive and not fully reimbursable by typical health insurance policies. Thankfully, there is a medical expense itemized deduction when the out-of-pocket amount exceeds 10 percent of your adjusted gross income.

Continue reading
0
  6195 Hits

The Marriage Penalty is Alive and Well

Despite what you may think, the marriage penalty is still alive and well. Whether you’re changing your filing status in 2019 because of marriage, divorce or another event (or it’s staying the same), you should review this information and plan accordingly.

Continue reading
0
  6250 Hits

A Smarter College Housing Option

Does your child, grandchild, or someone else you know need a place to live while attending college? Instead of renting a dorm or apartment, buying a condo or small house might make more sense. This can save money and provide tax breaks, but you need to do the math and be aware of the risks.

Continue reading
0
  6864 Hits

August DiSabatino, CPA Newsletter

news header

August 2019

In this Issue: 

  • I Owe Tax on That? 5 Surprising Taxable Items
  • Headed to the Fair? Avoid These Spending Traps
  • Smart Tactics to Manage Student Debt
  • Cash Flow Concepts That Can Save Your Business

This Month:

  •  September 2: Labor Day

Summer is starting to wind down and the kids will soon be headed back to school. Now is a great time to review if you've had, or will have, any special taxable events this year. The first article highlights five taxable items that come as a surprise to many people. This month's newsletter also includes spending traps to avoid when headed to the fair, ways to manage the burden of student loan debt, and cash flow strategies that can save your business.

Call if you would like to discuss how this information relates to you. If you know someone who can benefit from this newsletter, feel free to send it to them.

Continue reading
0
  4336 Hits

Avoid the Pitfalls of Selling Property to Family

Suppose you own property you intend to transfer to your loved ones. Perhaps you are considering giving your children an ownership interest in your principal residence. Before you act, you should review the tax consequences of your decision. Specifically, tax law includes several provisions involving sales to related parties. As you might imagine, this covers relatives like your children, grandchildren and siblings, but it also applies to business entities you own. Here are four common situations you may encounter, and tips to help you avoid tax trouble:

Continue reading
0
  6466 Hits

IRS ALERT: Two New Tax Scams

The IRS remains on the lookout for tax scams that can blindside unsuspecting taxpayers. Now two variations of past scams are currently making the rounds. Here’s what you need to know:

Continue reading
0
  3363 Hits

Retirement Basics: Understanding Tax Efficiency

One of the basics in retirement is to be as tax efficient with your income as possible. In 2019, income tax rates range from 0 to 37 percent, plus a potential 3.8 percent net investment tax. Understanding how these progressive tax rates apply to ordinary income creates a tremendous retirement planning opportunity.

Continue reading
0
  3042 Hits

Don't Fall for These 5 Audit Myths

When it comes to the perception of IRS audits, conjecture reigns supreme. The combination of the complex tax code and a government agency with the full authority to enforce it leads to some pretty wild ideas. Separating truth from fiction is an important exercise for everyone. Here are five audit myths that, if believed, can cost you during an audit:

Continue reading
0
  3182 Hits

July DiSabatino, CPA Newsletter

news header

July 2019

In this Issue: 

  • Effective Tax Planning Starts Now!
  • Can't Miss Stops for Your Summer Road Trip
  • What You Need To Know About IRS Audits
  • Make Setting Salaries Easier With These 5 Steps

This Month:

  • July 4: Independence Day

Tax day might seem far away, but waiting until year-end to make your tax moves may prove costly to you. Maximizing your tax savings starts with an effective mid-year strategy! Detailed here are some ideas to kick-start your summer tax planning. This issue also includes some unique and free summer travel destinations, an infographic with key IRS audit information, and five steps to help your business set the right salaries for your employees.

Call if you would like to discuss how this information relates to you. If you know someone who can benefit from this newsletter, feel free to send it to them.

Continue reading
0
  3767 Hits

4 Awesome Summertime Tax Saving Tips

Summer is usually the time for relaxing, but it can also be a time for tax savings, especially if you’re still reeling from an unexpectedly large tax bill in April. Here are four timely tips:

Continue reading
0
  3316 Hits

3 Great Charitable Deduction Ideas

Despite what you may have heard from friends or family, you can still claim generous tax benefits for charitable contributions. Here are three prime examples of charitable tax breaks ripe for the picking if you know where to look:

Continue reading
0
  3156 Hits

Reminder: Second Quarter Estimated Taxes Due - Now is the time to make your estimated tax payment

If you have not already done so, now is the time to review your tax situation and make an estimated quarterly tax payment using Form 1040-ES. The second quarter due date is now here.

Continue reading
0
  2944 Hits

June DiSabatino, CPA Newsletter

news header

June 2019

In this Issue: 

  • 5 Summer Tax Savings Opportunities
  • Get Your Life Back! Ideas to Unplug
  • Payroll Fraud Schemes Every Business Should Know
  • Never Take on the IRS Alone

This Month:

  • June 16: Father's Day
  • June 17: 2nd qtr estimated taxes due
  • June 17: 2018 tax deadline for U.S. citizens living abroad

Summertime offers unique tax saving situations. Outlined here are five ideas everyone can use. Plus, this issue includes ideas to help you unplug from your electronics and discusses possible payroll fraud schemes. Finally, spend a minute reviewing the wisdom of asking for help should you be contacted by the IRS.

Call if you would like to discuss how any of this information relates to you. If you know someone that can benefit from this newsletter, feel free to send it to them.

Continue reading
0
  3487 Hits

2020 Health Savings Account Limits: New contribution limits are on the horizon

The savings limits for the ever-popular health savings accounts (HSA) are now set for 2020. The new limits are outlined here with current year amounts noted for comparison.

Continue reading
0
  3449 Hits
 

Speed Up Your Success!

Contact Us Today: 1-805-389-7300

© 2006-2018 Michael DiSabatino, CPA. All Rights Reserved.