- Tax Implications of Crowdfunding
- Raising money through Internet crowdfunding sites prompts questions about the taxability of the money raised. A number of sites host money-raising projects for fees ranging from 5 to 9%, including GoFundMe, Kickstarter, and Indiegogo. Each site specifies its own charges, limitations, and withdrawal processes. Whether the money raised is taxable depends upon the purpose of the fundraising campaign.
- Can't Pay Your Tax Liability?
- If you are unable to pay your tax liability for 2016, here is some information that you need to know. Most importantly, you should not let your inability to pay your tax liability in full keep you from filing your tax return properly and on time. This is because you must still pay the "failure to file" penalty, which accrues at a rate of 5% per month or partial month (up to a maximum of 25%) on the amount of tax that you owe based on your return. You can delay the "failure to file" penalty for six months by filing an extension, but that won't keep you penalty-free.
- Who Controls the Funds in a Section 529 Plan?
- This question frequently arises: Who controls the funds held in a Section 529 qualified tuition account? These accounts can become quite large, as they are limited only by the projected cost of a college education, and those costs will vary between state plans. Some states base their maximums on the cost of an in-state, four-year education, but others use the cost of the most expensive schools in the U.S.—including graduate studies. Most have limits in excess of $200,000, and some can reach $475,000 or more. Thus, it is only natural that those who fund an account would be concerned about who controls the account's distributions. This is especially true when grandparents or others are making contributions to an account that is limited only by gift-tax considerations.
- Tips for Last Minute Payments and Filing
- If you are up against the April 18, 2017 deadline and still need some information to complete your tax return, you can obtain a six-month automatic time extension to file your 1040.
- Keeping Old Tax Records
- With tax day quickly approaching, the question arises on how long you need to keep your tax records. The answer, it depends. Watch the video for more info or contact our office for more details.
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