Tax Credits for Electric Vehicles: The Latest from the IRS
The IRS recently issued new guidance on electric vehicles. There are four ways you can potentially benefit from a federal tax credit for an EV you place in service in 2023 or later: Purchase an EV, and claim the clean vehicle credit. Lease an EV, and benefit from the lessor’s EV discount. Purchase a used […]
Business Gym for Your Employees and Maybe You Too
I know you have been thinking about employee fitness and possibly a gym or other athletic facility. To be tax deductible, your gym or other athletic facilities must be primarily for the benefit of your employees—other than employees who are officers, shareholders, or other owners who own a 10 percent or greater interest in the […]
Take Advantage of the Once-in-a-lifetime IRA-to-HSA Rollover
Health Savings Accounts (HSAs) are designed for use alongside high-deductible health plans, assisting you in covering your medical expenses. They can also function as an incredible retirement account due to their triple tax benefit: You can deduct contributions from your taxes. Your account balance grows without being taxed. Withdrawals for medical expenses are tax-free. And […]
Don’t Expose Yourself with Improper Use of the $75 Rule
The $75 rule applies to certain business expenses where you do not need a receipt. But I emphasize that this rule does not apply to all tax deductions. Many taxpayers mistakenly apply the $75 rule to all their tax deductions, which can result in a significant loss of deductions and penalties. I encourage you to […]
Avoid This Family Member S Corporation Health Insurance Mistake
I’m reaching out to remind you of two important issues related to health insurance deductions for S corporations. First, if you own more than 2 percent of an S corporation and provide health insurance coverage, there are three steps you need to follow to claim a deduction: Step 1. The cost of the insurance must […]
Plan Your Passive Activity Losses for Tax-Deduction Relevance
In 1986, lawmakers drove a stake through the heart of your rental property tax deductions. That stake, called the passive-loss rules, causes myriad complications that now, 37 years later, are still commonly misunderstood. The Trap In 1986, lawmakers made you shovel your taxable activities into three basic tax buckets. Looking at the buckets from a […]
Tax Law Changes in 2023
Are you ready for the new tax law changes coming in 2023? Because it’s a whole new ball game! Here are the major changes that you should know about: August 2022: Inflation Reduction Act Clean energy tax credits for homeowners Rebates for electric vehicle purchases Expanded IRS Enforcement 15% corporate minimum tax Tax on stock […]
Primer: When Cancellation of Debt (COD) Income Can Be Tax-Free
Sometimes debts can pile up beyond a borrower’s ability to repay, especially if we are heading into a recession. But lenders are sometimes willing to cancel (forgive) debts that are owed by financially challenged borrowers. While a debt cancellation can help a beleaguered borrower survive, it can also trigger negative tax consequences. Or it can […]
Crowdfunding: Is It Taxable?
Crowdfunding is a national and international phenomenon. Over $17 billion is raised yearly in North America through world-famous websites such as GoFundMe and Kickstarter. All this crowdfunding activity leads to an obvious question: Is the money raised this way taxable income for the recipients? You might be surprised to learn that the courts and the […]
Mixed signals on economic outlook
If there is one thing that is bothering the political set up, people and the investor community, it is the state of economy. However, numbers released in late October seem to provide some cheer.The third quarter (July-September 2022) GDP numbers point to the US economy recovery and dispels a fear of recession in the backdrop […]
Dollar spike, Inflation woes
Amazon Founder Jeff Bezos’s recent warning about the recession looming large and cautioning people to tread cautiously against big ticket spending sums up the sign of tough times.Who better to comment on the state of economy than the world’s richest man who can read the pulse of the people and the economy resulting in his […]
US Economy Post Midterm Polls
We are in the midst of challenging times with a few predicting a looming economic crisis and some experts expressing that we are already in recession after two tough consecutive quarters. There seems to be no quick fix in sight. If the Ukraine crisis added to the global financial, energy and food supply woes, the […]