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Ken Berry, JD

CPA Practice Advisor Tax Correspondent

Ken Berry, Esq., is a nationally-known writer and editor specializing in tax and financial planning matters. During a career of more than 35 years, he has served as managing editor of a publisher of content-based marketing tools and vice president of an online continuing education company in the financial services industry. As a freelance writer, Ken has authored thousands of articles for a wide variety of newsletters, magazines and other periodicals, emphasizing a sense of wit and clarity.

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Benefits

IRS Gives an Inch on Once-A-Year IRA Rollover Rule

The IRS isn’t backing off on its tough stance involving the “once-a-year-IRA rollover” rule. In the aftermath of a new case tightening the restriction for IRA owners (Bobrow, TC Memo 2014-21), it recently announced it intends the follow the Tax Court’s lead on this issue. However, showing some leniency, the IRS now says it won’t implement the new rule until 2015, providing clients with leeway for the rest of this year (Announcement 2014-15)

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Income Tax

Summertime Tax Tip #7: Salvage Tax Deductions by Donating Household Items

It’s a common practice during the summer: After a spring cleaning, people try to sell the household items they no longer need or want in a “garage sale” (known as a “lawn sale, “tag sale” or some other name in parts of the country). But what do they do with those items that are left over at the end of the day? Instead of simply discarding them, they may be able to donate them to charity and take a tax deduction for their troubles.

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Income Tax

Summertime Tax Tip #6: Climb Over Tax Obstacles for Business Vehicles

Congress keeps threatening to close some of the long-standing loopholes in the tax law. But one key tax break for business people has remained on the books despite numerous efforts to repeal it. It’s the special tax provision for certain heavy-duty vehicles.

Benefits

IRS Nixes "Pump-and-Dump" Obamacare Strategy

Employers can’t get around the Obamacare “shared responsibility” provision simply by giving employees tax-free cash to pay for health insurance from a state-run exchange. In effect, this would pump up a worker’s pay and dump them in the marketplace. According to a new question and answer (Q&A) posted on the IRS website, as initially reported by the New York Times on May 25, the agency authoritatively states that the scheme won’t be allowed.

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Accounting

Summertime Tax Tip #5: Hot Dog! Get a Tax Break for Having a Company Picnic

Summer is the time for grilling burgers and hot dogs, escaping to the beach or woods or just relaxing and enjoying the warm weather. Of course, there’s nothing to prevent you from mixing in a little business with the pleasure. If your clients handle things the right way, and keep detailed records, they can write off a portion of their business entertainment expenses.

Income Tax

Summertime Tax Tip #4: Harvest a Bumper Crop of Tax Breaks

For many farmers, harvest time comes at the end of the summer. The same thing is true for your clients who are active traders in the stock market. But you must caution them that the tax landscape has changed in recent years.

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Income Tax

Summertime Tax Tip #3: Tax Credits for Summer Camp

Are your clients making plans to send their kids off to camp this summer? Depending on the arrangements, they may be entitled to claim a healthy tax credit – the dependent care credit (also known as the “child care credit” ) – for the daily expenses. However, there are no tax benefits available for overnight camps or other personal expenses.

IRS

Bitcoin Users: IRS Throws Monkey Wrench Into the Works

After several years of head-scratching, the IRS has finally offered guidance on the tax treatment for virtual currencies like Bitcoin (IRS Notice 2014-21). In brief, taxpayers have been advised to treat Bitcoin as property for U.S. tax purposes. But accountants, particularly those with small business clients, are still struggling to get a better handle on how this will work in real-life situations.

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Income Tax

Is An MBA Degree Tax Deductible? It Depends

Suppose one of your clients has his or her sights set on obtaining an MBA or another advanced degree. Usually, it takes significant time and effort to achieve this goal, especially if the degree candidate is currently working on a full-time or part-time basis. But earning the degree could be well worth the “blood, sweat and tears” from a monetary standpoint.

Accounting

Summertime Tax Tip #1: Mix In A Little Pleasure on Business Trips

Due to recent advances in technology, you can now talk face to face with someone halfway across the country without even budging from your desk. Yet it’s still important at times for business people to “press the flesh” or meet in person with an associate to conduct meetings or consummate a deal. At least, a business traveler may be entitled to generous tax deductions for his or her expenses.

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Accounting

College Athletes Could Be Sacked with High Taxes on Scholarships

Before student athletes begin celebrating the recent decision by the National Labor Relations Board (NLRB) that college football players should be classified as university employees, they might consider this extra point: Players could be hit with an unexpected tax bill on their scholarships.

Benefits

7 Reasons People Haven't Paid For Obamacare

The White House now says without equivocation that 7.1 million individuals signed up for Obamacare by March 31, the deadline for open enrollment in 2014. But how many of those people actually paid for health insurance coverage acquired through the marketplace? That’s where the “counting” gets a little trickier.