Friday, December 9, 2016

Stay Cyber Safe



While the holiday season represents time with friends and family, cyber-criminals see it as a time of increased opportunity. We are sharing some tips for avoiding scams and shopping safely online during the holidays!

Tip #1 - Protect against malicious emails and phone calls
Phishing messages are designed to mislead you into revealing confidential or personal information or to allow unauthorized access to your devices. These attempts are becoming more and more sophisticated and are often branded to look like they are coming from a legitimate company. Don’t click on suspicious links in emails, tweets, texts, posts and online advertising, which can compromise your device. If the link looks suspicious, delete the message without fully opening it. Be on the look-out for clues that the email or text you have received may be fake: spelling and grammatical errors are common indicators, or headlines that don’t match the context. because you now have a mentor to help you make better financial decisions. A good accountant will know how to save you money and give you advice on the most tax efficient way to run your business.  

Tip #2 - DO NOT give out personal information. 
Reputable companies will not ask you to enter personal information, such as your credit card number, or bank accounts.

Tip #3 – Have up-to-date security/antivirus software on your devices. 
The tools within these programs will help detect and remove viruses that can steal your identity while online. Check for a closed padlock in your web browser’s address bar or a URL address and an address that begins with HTTP or HTTPS. They indicate the website is encrypted or secured. Protect your personal information by being alert to the kinds of information being collected to complete a transaction. Ensure the requested information is needed only to complete the transaction. Fill out only required fields on checkout forms. Check the website's privacy policy to understand how your information will be stored and used..

Tip #4 - Create passwords that combine different numbers, letters and symbols. Cyber-criminals often try to use stolen credentials from one site to access other online accounts, so don’t use the same password across multiple sites. Change passwords often. 

Tip #5 - Report suspicious activity. If you suspect you have been a victim of phishing or online fraud, contact your financial institution, local police and your credit card company immediately, and check your credit to safeguard against identity fraud.  



Did you sell your Home in 2016?



Usually, profits you earn are taxable. However, if you sold your home, you may not have to pay taxes on the money you gain. Here are ten tips to keep in mind if you sold your home this year.

1. Exclusion of Gain. You may be able to exclude part or all of the gain from the sale of your home. This rule may apply if you meet the eligibility test. Parts of the test involve your ownership and use of the home. You must have owned and used it as your main home for at least two out of the five years before the date of sale. 


2. Exceptions May Apply. There are exceptions to the ownership, use and other rules. One exception applies to persons with a disability. Another applies to certain members of the military. That rule includes certain government and Peace Corps workers. For more information on this topic contact KAA Data Accounting & Consulting (844)KAA-4TAX or www.kaa4tax.com


3. Exclusion Limit. The most gain you can exclude from tax is $250,000 as a single filer. This limit is $500,000 for joint returns. The Net Investment Income Tax will not apply to the excluded gain. 


4. May Not Need to Report Sale. If the gain is not taxable, you may not need to report the sale to the IRS on your tax return. 


5. When You Must Report the Sale. You must report the sale on your tax return if you can’t exclude all or part of the gain. You must report the sale if you choose not to claim the exclusion. That’s also true if you get Form 1099-S, Proceeds From Real Estate Transactions. 


 6. Exclusion Frequency Limit. Generally, you may exclude the gain from the sale of your main home only once every two years. Some exceptions may apply to this rule. 


7. Only a Main Home Qualifies. If you own more than one home, you may only exclude the gain on the sale of your main home. Your main home usually is the home that you live in most of the time. 


8. First-time Home buyer Credit. If you claimed the first-time home buyer credit when you bought the home, special rules apply to the sale. For more information on these rules discuss them with Ken A Anaya. 


9. Home Sold at a Loss. If you sold your main home at a loss, you may or may not be able to deduct the loss on your tax return. This must be discussed with your tax preparer. 


10. Report Your Address Change. After you sell your home and move, update your address with the IRS and State of California. To do this, you must file the proper forms with the IRS and State of California. If you purchased health insurance through the Health Insurance Marketplace, you should also notify the Marketplace when you move out of the area covered by your current Marketplace plan. 





Please contact us at (844)KAA-4TAX or www.KAA4Tax.com with any question you may have regarding this Blog.

Look for your W-2 more timely in the New Year!



Enacted last December, our government created a new law which means employers need to file their copies of Forms W-2 and 1099’s by Jan. 31. These forms also go to the Social Security Administration (State of California) much faster this year. Employers reporting Employee earnings and non-employee compensation such as payments to independent contractors (for example Sub-Contractors in the Construction industry, Commissions earned in Real Estate, or Rents paid in Nail and Beauty Salons) submitted to the IRS are now due Jan. 31. Employers have long faced a Jan. 31 deadline in providing copies of these forms to their employees but were not always followed. That date has not changed but now must be filed with the IRS and State of California.

In the past employers normally had until the end of February, if filing on paper, or the end of March, if filing electronically, to send in copies of these forms. Now the IRS is working with the payroll community and other partners to spread the word as January 31, 2017 is now the DEADLINE.


The reason for the change is to helps stop fraud or errors. The new Jan. 31 deadline will help the IRS to spot errors on returns filed by taxpayers. Having these W-2s and 1099s sooner will make it easier for the IRS to verify legitimate tax returns and get refunds to taxpayers eligible to receive them. The changes will allow the IRS to send some tax refunds faster. Please contact us should you have any questions with this blog (844) KAA-4TAX or www.KAA4Tax.com