Ask a CPA

Use Form 945 to report Federal Income Tax withholding from non-payroll items such as pensions, annuities, IRA's, backup withholding and gambling winnings.
Use Form 8109 or the EFTPS system to deposit the tax if applicable.

No. You may elect to use an Alternative Depreciation System (ADS) which applies straight-line depreciation over the applicable ADS recovery period. This is in contrast to the MACRS double-declining method which would generally yield a higher deduction in the earlier years.

If the excavating and soil removal do not bear a direct association with the construction of a building, then the excavating, soil removal, grading, or landscaping, is generally considered part of the land cost. Land is not depreciable.

The use of the standard mileage method is limited to a self-employed individual or an employee who operates an automobile for business purposes. Corporations would not qualify. Partners in a partnership would qualify because they are considered self-employed.

Yes. A Partnership or a Corporation can lease an auto for business purposes. Leased automobiles are subject to luxury auto limitations. Speak to your local CPA about the limitations and the "lease versus buy" strategies as they pertain to automobiles.

Yes. Unless Congress reinstates it, the credit for increasing research activities is scheduled to expire for research expenses paid or incurred after 2011. The credit was claimed on IRS Form 6765.

The partnership's income, gains, losses, deductions, credits and preferences are computed as if the entities tax year closed on the date of the partner's death. The partner (to his social security number) receives a k-1 that represents the period on the year he was alive. The partner's estate (EIN of the estate) receives a k-1 for the remainder of the year. The estate continues to receive a k-1 until settled at which time the interest in the partnership terminates.

No. A partnership terminates when one of the following events takes place.
All its operations are discontinued and no part of any business, financial operation, or venture is continued by any of its partners in a partnership.
At least 50% of the total interest in partnership capital and profits is sold or exchanged within a 12-month period, including a sale or exchange to another partner.

No. The VOW to Hire Heroes Act of 2011 made changes to the Work Opportunity Tax Credit (WOTC). The Act added two new categories to the existing qualified veteran targeted group and made the WOTC available to certain tax-exempt employers as a credit against the employer’s share of social security tax. The Act allows employers to claim the WOTC for veterans certified as qualified veterans and who begin work before January 1, 2013.
The credit can be as high as $9,600 per qualified veteran for for-profit employers or up to $6,240 for qualified tax-exempt organizations, but the amount of the credit will also depend on a number of factors, including the length of the veteran’s unemployment before hire, the number of hours the veteran works, and the veteran’s first-year wages. The amount of the credit for qualified tax-exempt organizations may not exceed the organization’s employer social security tax for the period for which the credit is claimed. All employers must obtain certification that an individual is a member of the targeted group, before the employer may claim the credit. The process for certifying the veterans for this credit is the same for all employers.
Normally, an eligible employer must file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with their respective state workforce agency within 28 days after the eligible worker begins work. But under a special rule included in IRS Notice 2012-13, employers have until June 19, 2012, to complete and file this newly-revised form for veterans hired on or after Nov. 22, 2011, and before May 22, 2012. The 28-day rule will again apply to eligible veterans hired on or after May 22, 2012.
Use Form 8850 to claim the credit. Speak to your local CPA about the targeted group designation.