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A time of transition, changing jobs may lower your taxes

September is often a time of transition, when people decide to make major life decisions–such as changing jobs. If you’re looking for a new job, then you may be able to claim a tax deduction for some of your job hunting expenses–as long as it’s in your same line of work. Here are seven things you need to know about deducting these costs: 1. Your expenses must be for a job search in your current occupation. You may not deduct expenses related to a search for a job in a new occupation. If your employer or another party reimburses you for an expense, you may not deduct it. 2. You can deduct employment and job placement agency fees you pay while looking for a job. 3. You can deduct the cost of preparing and mailing copies of your resume to prospective employers. 4. If you travel to look for a new job, you may be able to deduct your travel expenses. However, you can only deduct them if the trip is primarily to look for a new job. 5. You can’t deduct job search expenses if there was a substantial break between the end of your last job and the time you began looking for a new one. 6. You can’t deduct job search expenses if you’re looking for a job for the first time. 7. You will usually claim job search expenses as a miscellaneous itemized deduction, but can deduct only the amount of your total miscellaneous deductions that exceed two percent of your adjusted gross...

Which Moving Expenses are Deductible?

If you moved due to a change in your job or business location, or because you started a new job or business, you may be able to deduct your reasonable moving expenses; however, you may not deduct any expenses for meals. If you meet the requirements of the tax law for the deduction of moving expenses, you can deduct allowable expenses for a move to the area of a new main job location within the United States or its possessions. Your move may be from one United States location to another or from a foreign country to the United States. Note: The rules applicable to moving within or to the United States are different from the rules that apply to moves outside the United States. These rules are discussed separately. To qualify for the moving expense deduction, you must satisfy three requirements. Under the first requirement, your move must closely relate to the start of work. Generally, you can consider moving expenses within one year of the date you first report to work at a new job location. Additional rules apply to this requirement. Please contact us if you need assistance understanding this requirement. The second requirement is the “distance test”; your new workplace must be at least 50 miles farther from your old home than your old job location was from your old home. For example, if your old main job location was 12 miles from your former home, your new main job location must be at least 62 miles from that former home. If you had no previous workplace, your new job location must be at least 50...

Renting out a Vacation Home

Tax rules on rental income from second homes can be complicated, particularly if you rent the home out for several months of the year, but also use the home yourself. There is however, one provision that is not complicated. Homeowners who rent out their property for 14 or fewer days a year can pocket the rental income, tax-free. Known as the “Master’s exemption”, because it is used by homeowners, near the Augusta National Golf Club in Augusta, GA who rent out their homes during the Master’s Tournament (for as much as $20,000!). It is also used by homeowners who rent out their homes for movie productions or those whose residences are located near Super Bowl sites or national political conventions. Tip: If you live close to a vacation destination such as the beach or mountains, you may be able to make some extra cash by renting out your home (principal residence) when you go on vacation–as long as it’s two weeks or less. And, although you can’t take depreciation or deduct for maintenance, you can deduct mortgage interest and property taxes on Schedule A. In general, income from rental of a vacation home for 15 days or longer must be reported on your tax return on Schedule E, Supplemental Income and Loss. You should also keep in mind that the definition of a “vacation home” is not limited to a house. Apartments, condominiums, mobile homes, and boats are also considered vacation homes in the eyes of the IRS. Further, the IRS states that a vacation home is considered a residence if personal use exceeds 14 days or more than 10%...

2013 Mileage Rates

The standard mileage rates for calculating deductible costs for using a car, van, pickup or lightweight “panel” truck is 56.5 cents per mile for business travel. For other potentially deductible driving-related expenses, the rates are 24 cents per mile for medical purposes or when moving to a new residence (following additional rules), and 14 cents per mile for driving in the service of a charitable...

website design has been moved

We have reinvented the design part of the business and move it to its own company,  awfedesign, separating out the logical from the abstract. Awfedesign will be offering more services and packages for design work: website design, illustrations, art designs, logos, etc. We are also adding more ways to buy domains, emails and hosting packages. Click on the link and check out our new design...

When does tax season start?

We here at chaoticcancellation are busy getting your end of year financials in order, reconciling December statements and generally getting caught from the end of the year 2012.  We hope that by mid-February, we will be able to start tax preparation and getting your tax returns done early and/or sending your financials to your CPA. January is our time to get caught up and the Internal Revenue Service has announced that it has revised its opening date for tax season, pushing it out just eight days to January 30, 2013. Normally, the tax season opens on January 22 each year however due to tax legislation, its been pushed out. The statement on the IRS website The IRS is currently reviewing the details of this week’s tax legislation and assessing what impact it will have on this year’s filing season. The IRS will soon make available additional information on when taxpayers can start filing 2012 tax returns. What this means is that the IRS will begin accepting tax returns on January 30, 2013. Most taxpayers should be able to file on that date though some taxpayers will have to wait a bit for revised forms. Those include folks claiming residential energy credits, depreciation of property or general business credits. Mid-February is when we will start processing tax returns for our...

Online Accounting

Online Accounting Finally!! Many of you have been asking for an online accounting solution and we have finally found a great solution, it’s called Xero which we have partnered with. We are in the process of getting certified and if you are interested, we will be more than happy to convert your QuickBooks File to Xero so you can see your cash flow in...

Office Hours 2013

Our office hours have changed. We are open Sunday through Thursday from 12pm-8pm Onsite meetings and visits will be scheduled between 2pm-8pm

Who are we?

The short version: chaoticcancellation is your back office chaoticcancellation has evolved, simply we want to help you cancel the chaos within. We help manage your project from start to finish, helping you stay organized and focused on what is important: your business and the reason you started your business. We handle all the accounting details and paperwork from daily entry to dealing with the IRS.   The long version is about revolutionary change, changing the chaos into order, change your ideas, change your world. According to Chinese symbolism, the juxtaposed elements of this revolution hexagram are fire under water. Fire evaporates water, and water  puts out fire. Change often causes conflict; conflict brings about change. This hexagram refers to that time in the cycle of human affairs when things need stirring up, and when the hint of dramatic change is in the air. In order to succeed, revolutions must be in alignment with certain immutable laws. They must begin at the right moment, gather support from a broad-base of people, be guided by sincere and capable leaders and – most important of all – must address a real need. The strength of the forces of change will always be in proportion to the urgency of the need being championed. This is true whether the revolution is in government, in business, in education or in one’s personal affairs. We are that change, that revolution that changes your chaos into order. Revolutionary change points to a time when chaos arises from order. It is important to realize that not all order is good, not all chaos bad. Chaos, in fact, is an...