By now, all property owners have had some time to stew over the preliminary reassessments they have received.  You’ve read our recent post on the Lancaster County property reassessment, searched Google for more information and discussed it with friends and neighbors.  The good news is, you don’t have to do anything yet.  That doesn’t mean, however, that it’s not time for you to start considering your options and preparing for the inevitable.

Final assessments will be mailed to all property owners on June 1, 2017.  You have 40 days from the date of final notice to file your appeal if you don’t agree with your property’s assessed value or the value becomes final.  As is the case with everything else in life, that time will fly by.  And because the appeal process may in some cases require an appraisal of your property, your decision to begin the process should be made sooner rather than later.
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If you own property in Lancaster County, you probably have heard a lot about the County-wide property reassessment.  You should have received your Preliminary Assessment Notice in the mail.  If you suffered from a bit of shell shock after opening the Notice, take a breath, there are things you can do if you feel the value attributed to your home is incorrect.
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Ask yourself this question, and answer honestly: how do I feel about my business recordkeeping?

Last month I attended a presentation hosted by a friend and coworker, Dave the Tax Guy of ITP Taxes. The topic: Recordkeeping. I know, I know, sounds like a topic as enthralling as watching paint dry. But I can assure you, Dave quickly had the undivided attention of everyone in the room, as he told a harrowing story about the process of working through an audit by the IRS. 
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As income tax season is quickly ramping up, I am commonly asked by clients which parent can claim the children as dependents when they are separated from the other parent. And like any good lawyer, I often say it depends.

So what exactly does it depend on? According to the Internal Revenue Service, in order to claim a child as a dependent he or she must be a qualifying child. Assuming your children are qualifying children, only one exemption can be claimed per qualifying child. The IRS has determined that the “custodial parent” gets the to claim the exemption. The IRS has its own definition of “custodial parent.” According to their regulations, a custodial parent is the parent with whom the child lived for the greater number of overnights in the calendar year.
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The deadline for challenging your 2014-2015 Lancaster County property assessment is August 1, 2014.  Appeals filed after August 1, 2014 won’t be heard until 2015 and won’t take effect until 2016.  And if you are relying upon an appraisal to support your appeal, the written appraisal report must be filed with the Lancaster County Assessment Office by August 15, 2014.  This means the time to act is now.

How do you know whether an assessment appeal is warranted?  We look at the current assessment, the common level ratio, the current total tax millage rate and evidence of current fair market value.  Current assessments and property account numbers are posted online. (The property account number, and in some cases, the assessment, is listed on recently issued school district real estate tax notices.)  The common level ratio (CLR) is the factor applied to the assessment that converts the assessed value into fair market value. As of July 1, 2014, the common level ratio increased to 1.26. Total tax millage rates now include 2014-2015 school district taxes.     

Property owners should multiply their assessment by the CLR (1.26) to see if the fair market value is accurate. For example, an assessment of $100,000 implies a fair market value of $126,000 [$100,000 times 1.26]. 


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One of the more popular shows on televisions is Modern Family.  For those of you who have not seen it, the comedy revolves around three interrelated households facing the trials and tribulations of "modern" life.  One of the households belong to Cam and Mitchell, two same-sex partners who have adopted an adorable little girl from Vietnam.  Now, while plotlines featuring them tend to be quite amusing, I can understand that how Cam and Mitchell file their taxes is probably not at the forefront of most viewers’ minds.  However, a recent decision by the Internal Revenue Service regarding its treatment of same-sex couples actually made me consider the notion.

The IRS has recently decided that, for federal tax purposes, it will recognize a same-sex marriage if it is valid where the marriage was entered into, regardless of where the couple actually resides.  This means that even though same-sex unions are not recognized in Pennsylvania, a same-sex couple living in Pennsylvania can be deemed married by the IRS as long as they obtain their marriage in another state where same-sex unions are legally recognized.

This means that legally married same-sex couples will be able to file their 2013 federal income tax returns using either the married filing jointly or married filing separately designations. In addition, they will also be able to file amended returns for prior tax years choosing to be treated as married during those years, as long as those years follow the date of the legal marriage. This treatment will be applied to all federal taxes, including estate, gift and generation skipping taxes. 


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