Are you thinking of renovating a building you own in an historic part of town? Before you start knocking down walls, find out if the building qualifies as an historic structure. It could result in a tax credit reducing your bill by thousands of dollars.
 








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However, be aware that beginning in 2018
​recent tax law changes affect the credits for building renovations.
 
Claiming the credit
 
While the 10 percent credit for rehabilitating buildings placed in service before 1936 is no longer available for expenses incurred after 2017, you may continue to claim a separate credit that's equal to 20 percent of qualified expenses for renovating historic structures.
 
For instance, if you spend $100,000 to update a brownstone with historic character, you may be able to cut $20,000 off the cost. Under the latest tax laws, this credit must be taken ratably over five years. That means a $4,000 credit is claimed each year for five years. So it'll take a little longer to recoup your costs.
 
Unlike the rehab credit, it may be easier to qualify for the historic structure credit than you think. For example, there are no age restrictions or wall retention rules. And it doesn't have to be a place where George Washington slept or an antebellum mansion. But there are two key requirements:

• The building must be listed on the National Register of Historic Places or located in a registered historic district and certified by the Secretary of the Interior. Currently, more than 90,000 buildings are listed.
• The rehabilitation must be certified as retaining the original historic character (but not necessarily the original use) of the building.

Finally, certain complex transitional rules may apply to projects that were underway before 2018. Call us if you have questions about your renovation projects and whether or not you're qualified to claim this credit.

"Tax Tips" are published weekly to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
 
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
 
We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at info@monarchaccountinggroup.com. 
 
For more free resources, such as Tax Rates, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Monarch Accounting Group, Inc
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720
​

​​​Monday, October 15, 2018, is the extension deadline for most taxpayers who requested an extra six months to file their 2017 tax return.

​For taxpayers who have not yet filed, here are a few tips to keep in mind about the extension deadline and taxes:
 
Try IRS Free File or e-file. Taxpayers can still e-file returns for free using IRS Free File. The program is available only on IRS.gov. Filing electronically is the easiest, safest and most accurate way to file taxes.

Use direct deposit. For taxpayers getting a refund, the fastest way to get it is to combine direct deposit and e-file.

Use IRS online payment options. Taxpayers who owe taxes should consider using IRS Direct Pay. It's a simple, quick and free way to pay from a checking or savings account. There are other online payment options.

Don't overlook tax benefits. Taxpayers should be sure to claim all entitled tax credits and deductions. These may include income and savings credits and education credits.
 
Keep a copy of the tax return. Taxpayers should keep copies of tax returns and all supporting documents for at least three years. This will help when adjusting withholding, making estimated tax payments and filing next year's return.
 
File by October 15. File on time to avoid a potential late filing penalty.
 
More time for the military. Military members and those serving in a combat zone generally get more time to file. Military members typically have until at least 180 days after leaving a combat zone to both file returns and pay any tax due.
 
Extension filers can avoid making these common filing errors
 
Taxpayers who filed for an extension of time have until Oct. 15 to submit their tax return.
 
To make sure they meet their tax obligations, taxpayers should file accurate tax returns. If a taxpayer makes an error on their tax return, it will likely take longer to process and could delay a refund. Taxpayers can avoid many common errors by filing electronically, the most accurate way to file a tax return. All taxpayers can e-file using IRS Free File or Free File Fillable Forms.
 
Here are common errors for taxpayers to avoid when preparing their tax return:

• Missing or inaccurate Social Security numbers. Taxpayers should be sure to enter each SSN on a tax return exactly as printed on the Social Security card.
• Misspelled names. People should double check to make sure they spelled all names listed on a tax return exactly as listed on the taxpayers' Social Security cards.
• Filing status. Some taxpayers claim the wrong filing status, such as Head of Household instead of Single. The Interactive Tax Assistanton IRS.gov can help taxpayers choose the correct status. E-file software also helps prevent mistakes.
• Math mistakes. Math errors are common, ranging from simple addition and subtraction to more complex items. Figuring the taxable portion of a pension, IRA distribution or Social Security benefits is more difficult and results in more errors. Taxpayers should always double check their math. Better yet, tax preparation software does it automatically.
• Figuring credits or deductions. Taxpayers can make mistakes figuring their Earned Income Tax Credit, Child and Dependent Care Credit, the standard deduction and other items. Follow the instructions carefully. For example, a taxpayer who's 65 or older, or blind, should claim the correct, higher standard deduction, if not itemizing. The IRS Interactive Tax Assistant can help determine if a taxpayer is eligible for tax credits or deductions.
• Incorrect bank account numbers. Taxpayers who are due a refund should choose direct deposit for ease and convenience, but the IRS cautions taxpayers to use the correct routing and account numbers on the tax return.
• Unsigned forms. An unsigned tax return isn't valid. Both spouses must sign a joint return; an exception may apply for some members of the military. Taxpayers can avoid this error by filing their return electronically and digitally signing it before sending it to the IRS. Taxpayers who are using a tax software product for the first time will need their adjusted gross income from their 2016 tax return to file electronically. Taxpayers who are using the same tax software they used last year usually will not need to enter prior-year information to electronically sign their 2017 tax return.
• Filing with an expired ITIN. The IRS will process and treat as timely a return filed with an expired Individual Tax Identification Number, but won't allow any exemptions or credits. Taxpayers will receive a notice explaining that an ITIN must be current before the IRS will pay a refund. Once the taxpayer renews the ITIN, the IRS will process exemptions and credits and pay an allowed refund. ITIN expiration and renewal information is available on IRS.gov.

​"Tax Tips" are published weekly to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
 
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
 
We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at info@monarchaccountinggroup.com. 
 
For more free resources, such as Tax Rates, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Monarch Accounting Group, Inc
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720

Are you sending your kids to summer camp while you and your spouse work? Not only will your kids enjoy it, you will also when you see the potential tax break. If certain requirements are met, the cost of day camp qualifies for the Child and Dependent Care Credit.

How to take advantage of this summertime tax break

The Child and Dependent Care Credit may be claimed for the expense of caring for children under age 13, as long as you (and your spouse, if married) are "gainfully employed."

For taxpayers with an adjusted gross income (AGI) above $43,000, the credit equals 20 percent of the qualified expenses. This percentage applies to the first $3,000 of qualified expenses for one child and $6,000 for two or more children. For example, for a couple with an AGI of $150,000 and two young children, the maximum credit is $1,200.

Consider these rules if you're hoping to take advantage of the credit when your kids go off to summer camp:

• The camp can be a specialty camp devoted exclusively to athletics, academics or some other pursuit.

• If the camp requires payment for transporting your children back and forth, the cost qualifies for the credit. But you get no benefit from personal driving or carpooling.

• You can't count the cost of special uniforms or equipment toward the credit.

• The credit is only available for day camp — not overnight camp.

Tax break alternative: If summer camp's not happening, you may consider having your child do some summer work at your business, thereby qualifying for other tax breaks.

Keep in mind that proper record keeping is essential. Make sure you obtain the camp's information (including official name, address and tax ID number) to use for your 2018 tax return.
​
"Tax Tips" are published weekly to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
 
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
 
We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at info@monarchaccountinggroup.com. 
 
For more free resources, such as Tax Rates, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Monarch Accounting Group, Inc
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720

While giving gifts to charity is usually a reward on its own, donors could often also expect to get a tax deduction. Because of recent tax law changes, that may not be the case this year, unless you take some extra planning steps.

Tax breaks for donating still exist

As before, charitable deductions are only available when you itemize your tax deductions (as opposed to claiming the standard deduction). However, even if you itemized in the past, you may decide not to under current law.

Certain itemized deductions have been reduced or eliminated, while the standard deduction has essentially been doubled to $12,000 for single filers and $24,000 for married joint filers. This means you could donate $10,000 to charity this year without realizing a charitable deduction, if you don't have other itemizable deductions. The changes are effective for 2018 through 2025.

But don't give up on donation tax benefits just yet. Depending on your situation, you might boost charitable donations to the point where you will still itemize deductions. Consider these ideas:

·         Give away appreciated property. If you've owned the property longer than a year, you can deduct its full current value — instead of your cost — without ever paying any tax on the appreciation.
·         Use a donor-advised fund (DAF). With a DAF, you designate charities that will receive contributions from a general pool. You can deduct your lump-sum donation immediately even though money may be paid out to charities over time.
·         Bunch your donations in years you expect to itemize deductions. Cut back or skip contributions in some years so you can double your donation amounts for other years.
·         Roll over funds from an IRA. If you're age 70½ or older, you can transfer up to $100,000 directly from an IRA without any tax consequences. You get no tax deduction, but the distribution isn't taxable either. The payout counts as a required minimum distribution (RMD). In other words, you had to take an RMD anyway, so you may as well give it to charity.

Give us a call if you have questions or would like help with your 2018 charitable giving plan.
​
"Tax Tips" are published weekly to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
 
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
 
We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at info@monarchaccountinggroup.com. 
 
For more free resources, such as Tax Rates, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Monarch Accounting Group, Inc
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720

Have you planned a summer outing for your employees? It might be a picnic or barbecue for the Fourth of July. Despite recent tax law changes eliminating most entertainment and meal deductions, your business can still deduct qualified expenses if certain requirements are met. In fact, you might be able to write off the entire cost.

What to expect for 2018

Most entertainment and meal expenses have been repealed, beginning in 2018. In addition, the tax benefits for company-provided eating facilities, like cafeterias or dining rooms, have been reduced. For 2018 through 2025, the deduction for these facilities is cut from 100 percent of the cost to 50 percent, before disappearing completely in 2026. Nonetheless, this remains a tax-free benefit to employees.

Under prior law, you could generally deduct 50 percent of the cost of your company's qualified entertainment and meal expenses. For instance, if you held a business meeting with a client in the afternoon and then treated the client to dinner and drinks at night, the costs were deductible.

Picnics are still deductible

The tax law changes don't affect a special tax law provision that says you can deduct 100 percent of the cost for company picnics and similar gatherings. This provision wasn't affected by the other tax changes in this area. Just remember: To qualify for this deduction, you must invite the entire staff to the picnic. In other words, you can't restrict the outing to a select group.

For instance, suppose a few friends or relatives crash the party. This won't jeopardize the overall deduction, but expenses attributable to those social guests are nondeductible. For instance, if the picnic costs $5,000 for 48 employees and two guests show up, you can deduct $4,800 (96 percent of $5,000).

This is a unique opportunity to take advantage of a tax break while rewarding employees. Book it on your summer schedule. Give us a call if you have questions.
​
"Tax Tips" are published weekly to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
 
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
 
We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at info@monarchaccountinggroup.com. 
 
For more free resources, such as Tax Rates, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Monarch Accounting Group, Inc
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720

Maybe you feel the need to brush up on your skills in your particular line of work. One option is to take a refresher course at a local college this summer. What makes it even more enticing? You may be able to deduct the cost as a business expense.

Make sure your class qualifies for a deduction

If you're an employee or self-employed and rack up some business education expenses (like refresher classes), the cost will qualify as an ordinary and necessary business expense only if it passes one of these two tests:

1. The education is required by your employer or by law to keep your current job.
2. The education maintains or improves skills needed in your present work.

However, you can't deduct any of your expenses — even if you meet either one of the two tests stated above — if the class is needed to meet the minimum educational requirements of your current position or it qualifies you for a new trade or business.

The IRS takes a notoriously tough stance on what constitutes a "new trade or business," and the courts usually back it up. For instance, deductions have often been denied in the past for nurses who take courses that might lead toward a career as a physician. Although, if you're merely studying new developments in your chosen field, you should be OK.

A new tax law snag

Previously, unreimbursed employee business expenses, including costs of business education, could be deducted as miscellaneous expenses on your personal tax return. Under new tax laws, deductions for miscellaneous expenses are suspended from 2018 through 2025. That means no write-off is available this year.
​
Luckily, you may be able to arrange for reimbursements from your employer. Reimbursement payments are generally tax-free to recipients and deductible by the employer. If an employer uses a formal educational assistance plan, they can take advantage of a tax exclusion of $5,250 per employee.

"Tax Tips" are published weekly to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
 
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
 
We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at info@monarchaccountinggroup.com. 
 
For more free resources, such as Tax Rates, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Monarch Accounting Group, Inc
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720