What Certain IRS Notices Mean What does it mean if a business receives a Notice CP2100 or CP2100A from the IRS? These notices tell recipients that the Form 1099 information returns they’ve submitted contain missing or incorrect Taxpayer Identification Numbers,… Read more »
Read Full Newsletter »Advanced Manufacturing Investment Credit, Federal Tax News for Businesses, Good Records for Businesses, IRS Notices, New Corporate Alternative Minimum Tax, tax news
Many businesses maintain life insurance policies on their owners or employees for estate planning, buyouts and various other business purposes. To receive the maximum tax benefits from business-owned life insurance, though, you need to understand the IRS rules and requirements. Basic… Read more »
Read Full Newsletter »Business-Owned Life Insurance, Exclusions from Income, How to Reap the Tax Perks of Business-Owned Life Insurance, Tax Perks
Inflation is generally bad news. But a favorable side effect is bigger annual inflation adjustments to federal tax breaks. In fact, many federal tax parameters for the 2023 tax year are up about 7% over the amounts for 2022. Here are… Read more »
Read Full Newsletter »Estate Tax Breaks, Federal Gift, Generation-Skipping Transfer Tax, Gift Tax Exclusion, Inflation Boosts, Inflation Boosts Federal Gift and Estate Tax Breaks, Inflation-Adjustment Basics, Noncitizen Spouses, Unified Federal Gift and Estate Tax Exemption
Many retirees have seen their Social Security benefits increase in 2023 due to a cost-of-living adjustment that was higher than in past years. Further increases are expected for 2024. While more benefits are welcome, they could mean more income taxes on… Read more »
Read Full Newsletter »Are Your Social Security Benefits Taxable?, filing jointly, Income Reduction Strategies, Individual Tax, Married, Proceed with Caution, Social Security Benefits, Tax Triggers
Proactive business owners always have an eye on the future. And part of that preparedness means knowing what the company is currently worth and doing everything possible to maximize that price. Operating in a sale-ready state can be worthwhile, for example,… Read more »
Read Full Newsletter »3 Approaches, Cost (or asset-based) approach, Cost Approach, Estimating the Value of Your Business Today, Income approach, Key Value Drivers, Market approach, Reasons to Value a Business, Standard of Value
Tax Help for College Expenses Although many college students are off for the summer, it’s a good time to consider the education tax breaks you may be able to claim on your 2023 tax return. There are many possibilities that… Read more »
Read Full Newsletter »Charity Status and Donating, Federal Tax News for Individuals, Health Savings Accounts for 2024, Individual Tax, Overlooked Deductions and other Tax Errors, Tax Help for College Expenses, Taxability of Disability Income
What to Do if You Missed the Tax Day Deadline Did you miss the 2022 tax filing deadline? For most taxpayers, that was April 18, 2023. Taxpayers who are expecting a refund won’t be penalized for late filing. But those… Read more »
Read Full Newsletter »Deducting Casualty Losses, Federal Tax News for Individuals, Individual Tax, IRS Plan for Spending Audit Money, Missed Tax Day Deadline, Social Security Wage Base Rises, When the IRS Wants to Talk to You
If you’re planning to move out of your current home, you face a tough question: Should you sell your home, or would it be more beneficial to convert it into an income-producing rental property? In terms of both selling prices and… Read more »
Read Full Newsletter »3 Taxpayer Friendly Exceptions to the PAL Rules, Beware of PAL Rules, Converting a Home to a Rental Property, Material Participation Standard, Real Estate Professional, Rental Property Write-Offs, Section 1031 Exchange Option, Short-Term Rentals, Small Landlord, tax implications, Tax Treatment of Rental Property Sales, Taxable Income from Rental Properties, To Rent or Not to Rent?
The statute of limitations for the IRS to audit your tax return is typically three years. It begins on the later of: 1) the due date for your tax return or 2) the date on which you file your taxes. While… Read more »
Read Full Newsletter »Bills and Receipts, Federal Tax Records, Investment Account Statements, Real Estate Records, Resist the Urge to Purge after Filing Your 2022 Tax Return, State Tax Records
Businesses Targeted for Identity Theft The IRS is warning businesses that they may be prime targets for identity theft. How do you know if your company’s identity has been stolen? According to the IRS, you should investigate if you receive… Read more »
Read Full Newsletter »A Proposed New Way to Report Tips, A Scam Involving Employee Retention Credits, business tax, Business vs. Hobby: Protect Your Tax Deductions, Businesses Targeted for Identity Theft, Deduct the Cost of Seeking New Business, Federal Tax News for Businesses
The federal income tax treatment of business-related meal and entertainment expenses has been a moving target the last few years. If you’re confused about what rules currently apply, you’re not alone. Here’s a refresher on what’s currently deductible — and what’s… Read more »
Read Full Newsletter »50% deduction for business meals, business tax, Deductions, Favorable Exceptions, Federal Income Tax, food and beverage costs, IRS Regulations, Meals vs. entertainment, Meals while traveling, TCJA Impact, Update on Deducting Business Meal and Entertainment Expenses
In a statement posted to its website on February 3, 2023, the IRS asked certain taxpayers to temporarily hold off on filing their 2022 returns until it could issue guidance on how to treat special tax refunds and payments made by… Read more »
Read Full Newsletter »2022 Taxes, Business auto expenses, Filing an Extension, In-progress "like-kind" exchanges, Medical expense deductions, Reasons to Extend Your Deadline, Should You Extend Your 2022 Tax Return
Retirement Plan Distributions: Know the Tax Rules At tax time, age matters. Taxpayers who take distributions from their retirement accounts before age 59½ will generally owe a penalty of 10% of the amount of the distribution. There are exceptions, such… Read more »
Read Full Newsletter »Advantages of Using Direct Deposit for Tax Refunds, Consequences of Unpaid Federal Tax Debt, Excludable Income from Some States, Federal Tax News for Individuals, Retirement Plan Distributions
Seniors who must take withdrawals from their IRAs may be able to benefit from a special tax provision for qualified charitable distributions (QCDs). Briefly stated, this provision allows people in their 70s and older to transfer funds directly from an IRA… Read more »
Read Full Newsletter »CRAT, CRT, CRUT, How QCDs Work, IRAs, New Rules, New Tax Law Improves QCD Benefits, Seniors who must take withdrawals
Debtors typically experience a feeling of relief when a creditor agrees to forgive their debt. But that feeling often is replaced by shock and confusion when they learn they owe taxes on so-called “cancellation of debt” (COD) income. Read on to… Read more »
Read Full Newsletter »Exceptions and Exclusions, Recourse vs. Nonrecourse Debt, Tax Treatment of Debt Forgiveness, Watch Out for Tax Bills Delivered COD
After months of negotiations, Congress finally passed the long-awaited Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0). This part of the omnibus funding package builds on the SECURE Act of 2019 and contains major changes in the required… Read more »
Read Full Newsletter »401(k), 403(b), 457(b), 5 Major Tax-Favored Retirement Plan Changes for Individuals under New Law, 50 or older, early withdrawals, Emergency Expenses, Emergency Savings Accounts, Failure to comply with RMD, Increased Starting Age for RMDs, individual retirement annuities, IRS penalties, Larger Catch-Up Contributions, Major Tax Changes, Major Tax-Favored Retirement Plan Changes for Individuals under New Law, minimum distribution (RMD), Penalty-Free Withdrawals, Penalty-Free Withdrawals for Designated Emergency Expenses, profit-sharing plans, Reduced Penalty for Failure to Take RMDs, Retirement Plan Emergency Savings Accounts, RMDs, Salary reduction catch-up contributions, SECURE 2.0, Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0), SIMPLE plans, Starting Age for RMDs, Starting in 2025, Tax Year 2023, tax-deferred retirement accounts, Traditional IRA
Are you contemplating some significant improvements to your home? Whether it’s adding a pool to assist with a medical condition, finishing a basement or installing energy-saving equipment, you may be in line for generous tax breaks under current law. Here are… Read more »
Read Full Newsletter »Adjustment to Basis, Four Tax Breaks for Home Improvements, home acquisition indebtedness, Home Improvements, Home Sale Gain Exclusion, Inflation Reduction Act, IRA, itemized deductions, Medically Necessary Improvements, Mortgage Interest Deductions, Residential Energy Credits, Tax Cuts and Jobs Act, Tax Savings, TCJA