Bulletins

At KDP Certified Public Accountants, LLP we want to you get answers to your questions quickly and efficiently. That’s why we’re keeping you updated on the latest financial and accounting news and information right from this page. Check back for new articles and links often.

New Oregon Sick Leave Law Goes Into Effect (Click here to read more)

Oregon's sick leave measure is now law. Governor Kate Brown signed SB 454 in June of 2015. The law takes effect January 1, 2016. If you employ even one employee in the State of Oregon, you must provide sick leave (paid or unpaid), with a few limited exceptions.

Unbalanced Increase of Oregon Corporate Tax (Click here to read more)

"Our Oregon," a Portland-based group, has filed two proposed measures for the 2016 ballot seeking to raise corporate taxes. C-corporations with Oregon gross receipts of more than $25 million would face an increase to their minimum tax.

Is a Vacation Home Right for You? (Click here to read more)

If you are considering buying a vacation home, you are in the prime season to shop. Unlike traditional home sales, which tend to slow down with the colder weather, fall and winter are the prime seasons for buying and selling "snowbird nests."

Individual Retirement Accounts: Part 3 - (Click here to read more)

In our last installment, we found that It is important that primary and contingent beneficiaries be current. We also stated that most married individuals name their spouse as their sole designated beneficiary of their IRA, which enables them to treat the IRA as their own and to postpone required distributions until they are 70 1/2. Naming a non-spouse as your beneficiary requires the individual to distribute the IRA within five years. In this installment we will discuss "Look-Through Trusts", the "Timetable for Naming Beneficiaries" and we will review a "Beneficiary Checklist."

Individual Retirement Accounts: Part 2 - (Click here to read more)

All IRAs must eventually be distributed, so it is crucial to plan for this eventuality. It is also of importance to name a beneficiary of your account and to know the consequences of not keeping your named beneficiary current. "Designated beneficiary" has a very meaningful definition with respect to the distribution of IRA assets at death, in that it must be a natural person, such as a spouse, child, parent, sibling or a friend, all of which have a life expectancy that can be determined. Using a non-natural beneficiary such as a charity, a corporation or a non-qualified trust will disqualify the account from being able to use an extended distribution period.

Individual Retirement Accounts: Part 1 - (Click here to read more)

Individual Retirement Accounts are an important tool in your retirement arsenal. Many of us set them up, make our regular contributions, and don't give them another thought. However, there are some potentially disturbing unintended consequences when details of the IRA are not carefully considered and properly executed. We'll examine some of these issues in this five part series.

Maximize Medical Expense Deductions (Click here to read more)

Before this year, you could claim an itemized deduction for medical expenses paid for you, your spouse, and your dependents to the extent those expenses exceeded 7.5% of AGI. In addition, there were no tax-law limits on the amount you could contribute to an employer-sponsored healthcare flexible spending account (FSA) arrangement. That was then. This is now. The rules have changed for the worse for 2013 and beyond. Thankfully, however, there are still some healthcare-related tax breaks on the table.

Designated Roth Accounts - an Option Worth Considering (Click here to read more)

More and more employer retirement plans are allowing employees the option of making elective contributions to Designated Roth Accounts (DRAs). For employees with this option, it's worth considering, especially if contributions to Roth IRAs are not available because of income limitations.

Taxpayer Advocate Service - A Government Agency There to Help (Click here to read more)

For years, the old line of "I'm from the government and I'm here to help" has drawn remarkably consistent laughter from audiences. However, in one case, the saying is really true. The IRS' Taxpayer Advocate is from the government and really does help practitioners and their clients.

Tax-free College Tuition Reimbursements for Business Owner's Child-employee (Click here to read more)

Section 127 educational assistance programs were set to expire at the end of 2012. Fortunately, the American Tax Relief Act of 2012 (a.k.a., the fiscal cliff legislation) made these taxpayer-friendly plans permanent. With the gut-wrenching cost of college these days, an educational assistance program can be a great way for small business owners to fund at least a part of the cost with tax-deductible (to the business) and tax-free (for the child-employee) dollars. But, of course, the right circumstance must apply for this to work.

Financial Aid-The Basics (Click here to read more)

College financial aid is money provided by colleges, governments, organizations, and businesses to help students pay college expenses. This money is characterized as either self-help aid or gift aid. It is awarded based on either need or merit.

New Safe-harbor Allowance for Home Offices and Other Business Uses of a Home (Click here to read more)

The IRS has established a new, simplified, safe-harbor method that individual taxpayers can elect to use to determine deductions related to the business use of their home, such as a home office. The new method is allowed for tax years beginning on or after 1/1/13. The new safe-harbor method does not change the rules regarding when home-related business deductions are allowed. It only provides a simplified method for calculating deductions- when they are allowed. This article explains what you need to know about the new method.

New 3.8% Medicare Tax on Net Investment Income (Click here to read more)

The IRS has issued much-needed guidance on the new 3.8% Medicare tax on net investment income. The guidance comes in the form of proposed reliance regulations (which means taxpayers can rely on them until further notice) and some FAQs (which are posted on the IRS website).

Student Financial Aid - The Basics (Click here to read more)

College financial aid is money provided by colleges, governments, organizations, and businesses to help students pay college expenses. This money is characterized as either self-help aid or gift aid. It is awarded based on either need or merit.

Protect Yourself from Email and Online Fraud (Click here to read more)

While online communications and banking have made life more convenient in many ways, it has also opened the door to new kinds of crime perpetrated by criminals from around the world. Living in a small community like ours at one time gave us a layer of protection from "big city" criminals. No more. Criminals from across the globe are reaching out to steal your identity and assets. Be informed, be aware and protect yourself and your assets.

Top 10 Reasons NOT to Plan for Retirement (Click here to read more)

You probably read or hear about some "Top Ten" list nearly every day. But take a moment to read this one. This list is different, and probably not the kind of list you’d expect a Financial Advisor to write.

Year-end Tax Planning for Mutual Fund Investments (Click here to read more)

While mutual funds have certain advantages, they don’t always yield the greatest tax results for investors who hold them in taxable accounts. With some advance planning, however, you can achieve better tax outcomes. Around the end of the year—which is where we are right now—the tax planning payoff can be significant.

Year end – Time to Tighten Internal Control and Prevent Fraud (Click here to read more)

Year end is a busy time in most businesses. Tax planning so that tax burdens can be evaluated and strategies developed to kept taxes as low as possible, determine if bonuses can be paid and how much, evaluate whether fixed assets should be purchased now or delayed into the future and many other decisions. It is a time to look at use of money and future financial needs of the organization.

Year-end Tax Planning Challenges (Click here to read more)

Year-end planning will be more challenging than normal this year. Unless Congress acts, starting in 2013, individuals will see higher tax rates across the board and a number of popular deductions and credits will be gone. Estate and gift tax rates will be higher as well. Additionally, a number of popular deductions expired at the end of 2011 and won’t be available for 2012.

Depreciation and the Secton 179 Deduction (Click here to read more)

If you are planning on buying business assets such as computers, software, office equipment or other tangible business property, you may want to consider purchasing before year end to take advantage of some potentially expiring deductions.

Top Five Gifts Without Tax (Click here to read more)

Let’s look at ways to make gifts that comply with the numerous gift tax rules and yet allow the recipient to get the maximum benefit of your generosity.

Banks Hit With Massive Cyber-Attacks: Is Your Money Safe? (Click here to read more)

Cyber-security specialists reported that cyber-attacks on U.S. banks escalated last week, overpowering some of the most sophisticated computer defenses of U.S. banks. These attacks, known as "Distributed Denial-of-Service," (DDoS) flooded bank websites with traffic, rendering them unavailable to consumers and disrupting transactions for hours at a time. Previous denial-of-service attacks have been covers for looting bank accounts and stealing customers’ or employees’ personal information. There is no evidence so far that the latest attacks have included theft, but the full extent of the damage may not be known for weeks or months.

Red Flags of Identity Theft (Click here to read more)

It is estimated that every 3.5 seconds someone in the United States has their identity stolen. Usually the victim has no idea their identity has been stolen until after the fact. Many view this as an ‘online’ only problem. While phishing scams, Trojans, and other forms of cybercrime are a factor there are also low tech means of identity theft such as a stolen wallet or purse or someone digging through garbage.

Top Five Education Deductions (Click here to read more)

September is the month we turn our focus back to school and education. If you have a child heading off to college, don't miss out on these five education related tax benefits.

Simple Anti-Fraud Measure: Free Credit Reports (Click here to read more)

With identity theft and fraud seemingly running rampant, it is imperative that consumers and business owners are vigilant in protecting themselves. One easy, but important tool in catching identity theft is the Free Credit Report.

Top 10 CPA Suggestions For August (Click here to read more)

Having clean books will contribute to the accuracy of your tax return and possibly save you headaches with the IRS should you ever be audited. The following steps can help set you on your way to tidy QuickBooks bookkeeping practices.

Reconsidering Those Desktop Purchase Price Allocations (Click here to read more)

When a taxpayer acquires real property consisting of multiple classes of depreciable and non-ciepreciable assets, the purchase price must be allocated in proportion to the fair market value of the assets acquired. Accordingly, when a taxpayer purchases something like a building, rental property, or farm, there is a need to allocate the purchase price to the non-depreciable land and to the depreciable buildings and other improvements, such as drainage tile or irrigation systems.

Substantiating Charitable Contributions (Click here to read more)

One of the most popular tax deductions for individuals is the one allowed for donations to charitable organizations—from the local church or synagogue to the Red Cross and various other national organizations. Unfortunately, over the last several decades, this deduction has also been among the most abused. Thus, perhaps it is not surprising that Congress has responded to the problem by regularly enacting more rules around documenting donations.

What you can do to help your accountant prepare an accurate tax return efficiently (Click here to read more)

The information you provide to us via the Organizer can help us prepare a more accurate return and put a completed return in your hands more quickly. Read our Top Ten Tax Hit List to find out if you are missing anything important in the preparation of your return.

Transactions Between Partners and Partnerships (Click here to read more)

The tax treatment of transactions between partners and partnerships is an ongoing source of confusion. No wonder! The rules are sometimes complicated and counterintuitive. In this Part 1 of our primer on partner/partnership transactions, we will try to dispel some of the confusion.

Advice for Professional Startups (Click here to read more)

When one professional service provider or a group of professional colleagues decide to go into business for themselves, there are a host of significant legal and tax implications to consider. These range from choosing the best type of entity for the new practice, to setting up a qualified retirement plan, to taking advantage of year-end tax planning opportunities. This release highlights some key issues that are likely to affect professional startups.

Importance of Updating Beneficiary Designations (Click here to read more)

Most of us have more than enough to do. Thus, it’s no surprise that we may let some important things slide until tomorrow or the next day or... whenever. A recent U.S. Supreme Court decision reminds us that sometimes "whenever" never gets here and the results can sometimes be tragic.

Benefits and Rules of Qualified Small Business Corporation (QSBC) Stock (Click here to read more)

Are you getting ready to form a new business or reorganize an existing business? This letter summarizes the special tax advantages available to shareholders who sell stock in qualified small business corporations (QSBCs).