13
Jul
TRUSTS “UNLIMITED” CHARITABLE DEDUCTION
Trusts can take a charitable tax deduction under Section 642(c), often described as “unlimited,” meaning they could potentially reduce taxable income to zero....
11
Apr
TAX SEASON CLEANUP: WHICH RECORDS CAN YOU TOSS?
The mountain of paper and electronic records needed to support a tax return may include receipts, bank and investment account statements, K-1s, W-2s, and 1099s. How long must the records be saved? This article provides an overview....
07
Feb
UPDATED GUIDE TO ROBUST DEPRECIATION WRITE-OFFS FOR YOUR BUSINESS
Section 179 of the tax code provides opportunities for substantial first-year depreciation deductions when a business places newly acquired qualifying assets into service. The Sec. 179 deduction amounts change annually due to inflation adjustments and certain limitations apply. Additionally, it’s important to consider any available...
16
Dec
FEELING CHARITABLE? BE SURE YOU CAN SUBSTANTIATE YOUR GIFTS
As the end of the year approaches, many people’s thoughts turn to charity. To avoid losing valuable charitable deductions, it’s important to become familiar with substantiation requirements. This brief article details what kind of “proof” is needed, depending on the donation details....
12
Feb
HOW TO SECURE A TAX BENEFIT WITH THE QBI DEDUCTION
The qualified business income (QBI) deduction, authorized by the Tax Cuts and Jobs Act (TCJA), is available to owners of pass-through entities — such as S corporations, partnerships and limited liability companies (LLCs) — as well as self-employed individuals. This article highlights how the QBI...
11
Dec
USE THE TAX CODE TO MAKE BUSINESS LOSSES LESS PAINFUL
Whether a business is new or established, losses can happen. The federal tax code may help soften the blow by allowing businesses to apply losses to offset taxable income in future years, subject to certain limitations....
20
Nov
HOW TO SECURE A BUSINESS BAD DEBT DEDUCTION
This brief article highlights how businesses may be able to secure bad debt deductions. This tax treatment isn’t automatic. A business must be able to show that the debt in question is worthless. The article explains the ins and outs of claiming a business bad...
10
Nov
FOLLOW IRS RULES TO NAIL DOWN A CHARITABLE TAX DEDUCTION
For charitable donations of cash and property to be deductible, they must meet certain IRS criteria. This short article discusses some of the basic rules and explains how to determine if the charity is a qualified charitable organization....
23
Oct
THE DEDUCTIBILITY OF MEDICAL EXPENSES
Individual taxpayers may be able to claim medical expense deductions on their tax returns. However, the rules can be challenging, and it can be difficult to qualify. This article offers up five points to keep in mind about the deductibility of medical expenses....
25
Nov
DISCOVER THE “HIDDEN” ADVANTAGE OF HSAS
Employers may want to explore the benefits of providing Health Savings Accounts (HSAs) to their workforce. When coupled with a high-deductible health plan, an HSA can be a powerful tool for funding medical expenses on a tax-advantaged basis. This brief article outlines the advantages and...
27
May
SENDING THE KIDS TO DAY CAMP MAY BRING A TAX BREAK
Among the many challenges of parenthood is what to do with the kids when school lets out. Parents who choose to send a child to day camp may qualify for a valuable tax break: that is, the child and dependent care credit. This article explains...
22
Apr
TAKING CASUALTY LOSS TAX DEDUCTIONS IS NOW HARDER
In recent months, some Americans have been victimized by severe storms, flooding, wildfires and other disasters. No matter where someone lives, an unexpected disaster may cause damage to his or her home or personal property. Before the passage of the Tax Cuts and Jobs Act,...
18
Feb
3 FINANCIAL LESSONS OF THE PANDEMIC
COVID-19’s rapid spread and the economic havoc that followed are vivid reminders of how unpredictable and volatile the broad economy — and each family’s personal finances — can be. This article discusses three financial lessons that may be learned from the pandemic....
04
Feb
BUSINESSES CAN STILL DEDUCT 100% OF RESTAURANT MEALS
Business owners should remember that the 50% deduction limit for certain meals remains suspended in 2022. That means companies can deduct 100% of the cost of business-related, restaurant-provided meals. This brief article has the details....
14
Jan
TRACKING DOWN DONATION SUBSTANTIATION
To support a charitable deduction, taxpayers need to comply with IRS substantiation requirements. But what if you never receive a letter from the charity substantiating a donation? This article explains the rules and notes a valuable tax deduction....
03
Dec
IS YOUR BUSINESS ELIGIBLE FOR THE QBI DEDUCTION?
Since the introduction of the qualified business income (QBI) deduction, many business owners have been left wondering whether they qualify for it. This brief article explains who’s eligible and how businesses may take action at year end to qualify....
12
Nov
ONE-TIME THING: IRA TO HSA TRANSFERS
Many people don’t know that you can transfer funds directly from an IRA to a Health Savings Account (HSA) without taxes or penalties. However, a taxpayer may do so only once during his or her lifetime. This article discusses some of the important points to...
29
Mar
PPP LOANS: ONE YEAR LATER
About a year ago, the Paycheck Protection Program (PPP) was launched in response to the COVID-19 crisis. If your company took out such a loan, you’re likely curious about the tax consequences — particularly for loans that have been forgiven. Forgiveness criteria An eligible recipient may have...
22
Mar
HOME’S WHERE A TAX BREAK MIGHT BE
If you own a home, the interest you pay on your home mortgage may provide a tax break in the form of the mortgage interest deduction. However, you must itemize deductions on your tax return and follow a few other rules. Acquisition debt A personal interest deduction...
12
Feb
CLAIMING THE HOME OFFICE DEDUCTION
Many people have found themselves working from home during the COVID-19 pandemic and wondering, “Can I claim the home office deduction for 2020?” The short answer is: Only if you’re self-employed. This article delves deeper into the other rules involved....
29
Jan
6 KEY TAX Q&AS FOR 2021
Now’s a good time for taxpayers to familiarize themselves with pertinent tax-related amounts that may or may not be changing in 2021 because of inflation. This article poses six key questions about such amounts, including those related to retirement planning and the itemized deduction....
22
Jun
KEEPING UP WITH THE NET OPERATING LOSS RULES
When a trade or business’s deductible expenses exceed its income, a net operating loss (NOL) generally occurs. The rules applying to NOLs have changed and changed again. This article reviews how they’ve been revised, including most recently under the CARES Act....
12
Jun
THE MARRIAGE PENALTY STILL EXISTS UNDER THE TCJA
One byproduct of the Internal Revenue Code is that the tax liability of married couples who file jointly may be more than their combined tax liabilities would be as single filers. When it is more, many refer to the resulting tax hike as “the marriage...
16
Mar
IS THE FAMILY AND MEDICAL LEAVE ACT CREDIT RIGHT FOR YOUR BUSINESS?
The Tax Cuts and Jobs Act created a new tax credit for certain employers that provide paid family and medical leave. Originally, it was available only for the 2018 and 2019 tax years but was recently extended by a new law. This article has the...
16
Dec
PUMP THE BRAKES BEFORE DONATING THAT VEHICLE TO CHARITY
Many people might consider donating their car to charity at year end to start the new year in a fresh ride and get a tax deduction. This brief article urges caution and explains why this strategy doesn’t always work out as intended....
13
Dec
5 LAST-MINUTE TAX MOVES FOR YOUR BUSINESS
The days of the calendar year are vanishing quickly, but there still may be some last-minute strategies that business owners can use to lower their 2019 tax bills. This article lists five to consider, including postponing invoices and qualifying for the pass-through deduction....
18
Oct
IS “BUNCHING” MEDICAL EXPENSES STILL FEASIBLE IN 2019?
Among the most important impacts of the Tax Cuts and Jobs Act is its increase of the standard deduction. This article explains how the increase has affected the strategy of “bunching” deductible medical expenses into one year to save tax dollars....
15
Mar
DID YOU REPAIR YOUR BUSINESS PROPERTY OR IMPROVE IT?
Business owners may think that, if they repair a piece of tangible property, they’ll qualify for an immediate tax deduction. But the IRS may define that “repair” as an “improvement,” and require the costs to be depreciated over a much longer period. This article explores...
21
Jan
LAYING THE GROUNDWORK FOR YOUR 2018 TAX RETURN
The Tax Cuts and Jobs Act made many changes to tax breaks for individuals. This article looks at some specific areas to review as one lays the groundwork for filing a 2018 tax return: personal exemptions, the standard deduction and the child credit....
12
Oct
CATCHING UP WITH THE HOME MORTGAGE INTEREST DEDUCTION
Among the biggest tax perks of buying a home is the ability to deduct mortgage interest payments. But this deduction has undergone some changes recently, so taxpayers may need to do some catching up. This brief article explains how the tax break has changed....
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