Daniel Cullinane CPA

25 Plaza 5 25th fl Jersey City NJ                                          phone 732-516-1648 fax 732-516-9778

MBA Taxation

Daniel Cullinane CPA

2500 Plaza 5 25th fl  Jersey City NJ 07311                                                          phone 732-516-1648  fax 732-516-9778

                 MBA TAXATION                                                                                                         

Copyright ©​ Daniel Cullinane CPA.

YOU TAKE LARGE CHARITABLE DEDUCTIONS

We all know that charitable contributions are a great write off and help you feel all warm and fuzzy inside. If your charitable deductions are disproportionately large  compared with your income, it raises a red flag. That is because the IRS knows what the average charitable donation is for folks at your income level. Also, if you do not get an appraisal for donations of valuable property ,or if you fail to file Form 8283 for noncash donations over $500, you become an even bigger audit target. If you have donated a conservation or facade easement to a charity, chances are good that you will be audited

Yahoo Inc is facing new pressure from investor groups who oppose giving Chief Executive Marissa Mayer more ime to show progress on her turnaround Canyon Capital Investors LLC, a Los Angeles investment firm ranks among Yahoo's 15 largest shareholders sent a letter to the board on Friday urging it to find a buyer for it core Internet business or the entire company. Another Yahoo investor New York hedge fund SpringOwl Asset Management LLC  is proposing a nes plan to slash the company's workforce by 75%, replace Ms Mayer with an operations focused CEO and bring in a strategic partner to help Yahoo navigate the tax issues surrounding its Asian assets.

​ARGENTINA SCRAPS CONTROLS ON CURRENCY

The odds of your tax return getting audited is actually quite low, but certain things can boost your odds. The Internal Revenue Service is short on personnel and funding, audited only .86% of all individual returns in 2014. The audit rate in 2015 has fallen to .84%. Your chances of being audited escalate depending upon various factors, ranging from income level to the types of deductions or losses claimed. Math errors may draw IRS inquiry, but they rarely lead to full blown exam.  Although, there is no sure way to avoid an IRS audit, these three red flags could increase your chances. In addition special scrutiny is given to cash intensive businesses such as taxis, car washes, bars, hair salons, restaurants and the like, as well as to small business owners who report a substantial net loss on Schedule C.


YOU MAKE A LOT OF MONEY

Although the overall individual audit rate is only about 1 in 119, the odds increase dramatically as your income goes up. IRS statistics for 2014 show that people with incomes of $200,000 or higher had an audit rate of 2.71% or one out of every 37 returns. Report $1 million or more of income? There is a one in 13 chance your return will be audited. The audit rate drops significantly for filers making less than $200,000. Only .78% ( 1 out of 128) of such returns were audited in 2014.





​YAHOO INVESTORS TIGHTEN SCREWS 

​GOVERNMENT FUNDING

Argentina's new government on Wednesday lifted currency controls, allowing its citizens to buy dollars for the first time in four years and setting the stage for a sharp depreciation of the peso. The move which officials hope will kick start the faltering economy is the strongest President Mauricio Macri has yet make id his bid to roll back the government  interference that marked the country's economy under previous presidentices

OUR GOAL IS SMOOTH SAILING

​Our mission is to keep you informed of issues which affect your economics and everyday life to enable you to sail through rough waters as smooth as possible. We are here to serve you and your business if you have one.


Congress passed far reaching legislation on friday to fund the government through September and to extend tax breaks for business and low income families, measures that would add hundreds of billions of dollars in new costs​ The legislation marked the finale of a tumultuous year that toppled Republican House Speaker John Bohiner but also delivered one ot the most productive sessions in five years of divided government, despite repeated threats of a government shutdown. Republicans who control Congress began the year pledging to wipe out deficits over the next decade but struck deals with Democrats and the White House on fronts that have eluded politicians for years. They passed a $1.5 trillion government spending bill and approved a multiyear highway funding package. They also ended a Medicare funding cliff and agreed to make permanent tax credits , steps that add more than $800 billion to deficits over the coming decade. The final burst of legislation signed by President Barrack Obama Friday afternoon, marked a departure form the many recent year end cliffhangers and also from deficit reducing policies of the GOP

IRS AUDIT RED FLAGS

​DECEMBER NEWSLETTER