When you sell your principal residence, you can exclude up to $250,000 ($500,000 for joint filers) of gain if you meet certain tests. Gain that qualifies for exclusion also is excluded from the new 3.8% Medicare contribution tax.
Losses on the sale of your home aren’t deductible. But if part of it is rented or used exclusively for your business, the loss attributable to that portion is deductible, subject to various limitations.
Because a second home is ineligible for the gain exclusion, consider converting it to rental use before selling. It can be considered a business asset, and you may be able to defer tax on any gains through an installment sale or a Section 1031 exchange. Or you may be able to deduct a loss, but only to the extent attributable to a decline in value after the conversion.
If you’re thinking about putting your home on the market, please contact us to learn more about the potential tax consequences of a sale.
Whalen & Company’s partners and staff are continuously striving to provide five-star service to our clients. That’s why we were really excited to learn recently that Luke Askins, help desk manager at My Service Depot, has been nominated as the Outstanding Customer Service Manager in the small business category in Columbus CEO Magazine’s new Customer Service Awards recognition program.
Luke, who has been with My Service Depot for five years, oversees the work of the company’s eight technical support agents. He is responsible for their training and managing customer service needs.
Luke was among those nominated by magazine readers in March and April. Their reasons: He gladly takes as much time as customers need to feel comfortable learning and using their new software program. He always speaks to customers with a smile. Answers questions by phone, email, chat and voicemail.
To help Luke win this honor, click here. Voting ends June 17.
My Service Depot, owned by Skip Stringfield, has been building software for the service industry for nearly 20 years. Its flagship product, Smart Service, is tightly coupled with QuickBooks.
82% of clients surveyed favor legislation that would establish a uniform definition of income along with related rules and regulations across all Ohio municipalities.
Respondents to The Whalen Poll on Ohio’s municipal income tax structure overwhelmingly favor a proposal to provide more uniformity and consistency to the tax system across all of the state’s cities and believe the change needs to take place now.
The poll, administered between May 21 and May 29 to business clients of Whalen & Company, CPAs, is the second poll the firm has conducted this year on business issues facing our clients. The first, in March, dealt with Governor Kasich’s proposed state budget for 2013-15 and tax reform measures. Results are sent to state legislators, statewide office holders and business leaders.
Eighty-two percent of those participating in the poll support proposed legislation in the Ohio House to establish a uniform definition of income along with related rules and regulations. More than two-thirds of the respondents favor immediate action.
Half of the respondents were business owners whose employees perform work in multiple locations and must pay the city income tax of their employees where the work is done. One third of these respondents indicated they file employee income tax in 14 to 19 cities with an additional 7 percent citing 20 or more cities. Nearly half file in two to three cities.
Sixty-four percent of the respondents find the complexity of the municipal income tax structure burdensome for taxpayers. Respondents were split on their views regarding the administration of the tax by cities. Thirty-eight percent felt the it was generally consistent while an equal number of respondents cited an inconsistency in the administration of the tax.
Half of the respondents felt the costs of complying with the state’s current municipal income tax structure are too high. On the other hand, 25 percent believe these costs are about right.
Furthermore, 54 percent of those taking part in the poll think the city income tax system puts Ohio at an economic disadvantage when compared to other states.
Thirty-two percent of the respondents have 50 or more employees, and 25 percent employ 20 to 49. About 25 percent have fewer than 10 employees.
Players, pictured from left, are Jeff Pumplun, Bruce Berry, Shawn Zeiter, Jeff Zaye, Drake Crabtree, Richard Crabtree, Paul Scordia, Josh Lephart, Trevan Moten, Brent Walden and Brandon Crumes.
Scordia Restaurant Group employees faced off against a team from the firm in the third annual Scordia-Whalen basketball tournament on May 7. Scordia’s team was the winner of the seven-game contest, although the Whalen team was much improved from last year. Whalen Team Captain Richard Crabtree and Scordia Owner Paul Scordia think the annual event is a great way to build relationships with members of the two organizations.
The Scordia Restaurant Group is a Burger King franchise with multiple restaurants located in Springfield, Troy, Sidney and Tipp City.
To see pictures of the teams and the players in action, click here.
DINO award winner Paul Bordner, left, receives congratulations from his brother Brett, a former award recipient.
Paul Bordner, president of Laser Reproductions, received the Distinguished Innovator Operator (DINO) Award at the recent 2013 Additive Manufacturing Users Group (AMUG) conference. The DINO award recognizes veterans in the industry with remarkable skills that contribute to the additive manufacturing industry as a whole.
Paul was one of five award recipients, and his selection marked the first time in AMUG history that the DINO award has been awarded to three members of the same family. Jerry Bordner, founder and board chairman of Laser Reproductions, received the DINO award in 2010. In 2011, son Bret Bordner, Laser Reproductions vice president, was the honoree.
Laser Reproductions is a leading provider of rapid prototyping, manufacturing, product development and stereolithography services to industrial design firms, original equipment manufacturers, inventors and architects. By combining today’s leading processes, a vast production capacity and the company’s expertise in design engineering, Laser Reproductions delivers innovative solutions that rapidly bring ideas to life. Full-service capabilities include today’s leading rapid prototyping processes and tooling and manufacturing services.
AMUG educates and supports users of all additive manufacturing technologies. Members from all over the world are focused in advancing additive manufacturing technology for rapid manufacturing and prototyping.
