News

How Summer Day Camp Can Save You Taxes

May 28, 2016 by Yeo & Yeo

Although the kids might still be in school for a few more weeks, summer day camp is rapidly approaching for many families. If yours is among them, did you know that sending your child to day camp might make you eligible for a tax credit?

The power of tax credits

Day camp (but not overnight camp) is a qualified expense under the child and dependent care credit, which is worth 20% of qualifying expenses (more if your adjusted gross income is less than $43,000), subject to a cap. For 2016, the maximum expenses allowed for the credit are $3,000 for one ...

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Putting Your Home on the Market? Understand the Tax Consequences of a Sale.

May 27, 2016 by Yeo & Yeo

As the school year draws to a close and the days lengthen, you may be one of the many homeowners who are getting ready to put their home on the market. After all, in many locales, summer is the best time of year to sell a home. But it’s important to think not only about the potential profit (or loss) from a sale, but also about the tax consequences.

Gains

If you’re selling your principal residence, you can exclude up to $250,000 ($500,000 for joint filers) of gain — as long as you meet certain tests. Gain that qualifies for exclusion also...

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QSB Stock Offers 2 Valuable Tax Benefits

May 25, 2016 by Yeo & Yeo

By investing in qualified small business (QSB) stock, you can diversify your portfolio and enjoy two valuable tax benefits:

1. Tax-free gain rollovers. If within 60 days of selling QSB stock you buy other QSB stock with the proceeds, you can defer the tax on your gain until you dispose of the new stock. The rolled-over gain reduces your basis in the new stock. For determining long-term capital gains treatment, the new stock’s holding period includes the holding period of the stock you sold.

2. Exclusion of gain. Generally, taxpayers selling QSB stock are allowed to exclude up to 50% of their gain if they’ve...

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United Way of Midland County Names Yeo & Yeo Among Companies That Care

May 23, 2016 by Yeo & Yeo

The United Way of Midland County recently recognized Yeo & Yeo among several Companies That Care at its annual Spirit of the Community Awards Celebration at the Great Hall in Midland. The event recognizes the many ways that individuals and organizations are lending their time and talents to create a better and stronger community. This is the seventh consecutive year that Yeo & Yeo won the award.

“Companies That Care are not only characterized by the financial commitment they and their employees make, but their impact through community advocacy and volunteerism,” says Ann Fillmore, executive director of the United Way of Midland County. “They serve as the foundation for real change and continue the strong legacy...

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Unexpected Retirement Plan Disqualification Can Trigger Serious Tax Problems

May 23, 2016 by Yeo & Yeo

It’s not unusual for the IRS to conduct audits of qualified employee benefit plans, including 401(k)s. Plan sponsors are expected to stay in compliance with numerous, frequently changing federal laws and regulations.

For example, have you identified all employees eligible for your 401(k) plan and given them the opportunity to make deferral elections? Are employee contributions limited to the amounts allowed under tax law for the calendar year? Does your 401(k) plan pass nondiscrimination tests? Traditional 401(k) plans must be regularly tested to ensure that the contributions don’t discriminate in favor of highly compensated employees.

If the IRS uncovers compliance errors and...

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Department of Labor’s Final Rule on Overtime Signals Big Changes for Companies

May 20, 2016 by Yeo & Yeo

The U.S. Department of Labor (DOL) has issued the “Final Rule” version of its amendments to overtime pay requirements, affecting more than four million workers who may qualify for overtime pay. The new rules will take effect December 1, 2016. 

The new rules include changes to the criteria used to define overtime exemption for executive, administrative, professional, outside sales and computer employees (white collar workers) under the Fair Labor Standards Act. 

Until now, workers who earned more than $23,660 per year, or $455 per week, were exempt from overtime if they performed managerial or professional ...

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