Primer: When Cancellation of Debt (COD) Income Can Be Tax-Free

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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?

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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

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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

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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

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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 […]

$80 Billion to the IRS: What It Means for You

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You may have noticed that the IRS is in a bad way.  It has a backlog of millions of unprocessed paper tax returns, and taxpayers can’t get through to the agency on the phone. Congress noticed and took action by passing a massive funding of the IRS in the recently enacted Inflation Reduction Act. The […]

2022 Last-Minute Vehicle Purchases to Save on Taxes

Last-Minute Vehicle Purchases to Save on Taxes

2022 Last-Minute Vehicle Purchases to Save on Taxes Here’s an easy question: Do you need more 2022 tax deductions? If yes, continue reading.  Next easy question: Do you need a replacement business vehicle?  If yes, you can simultaneously solve or mitigate the first problem (needing more deductions) and the second problem (needing a replacement vehicle) […]

2022 Last-Minute Year-End Retirement Deductions

Retirement Tax Deductions

Last Minute Tax Deductions Retirement Deductions The clock continues to tick. Your retirement is one year closer. You have time before December 31 to take steps that will help you fund the retirement you desire. Here are four things to consider. 1. Establish Your 2022 Retirement Plan First, a question: Do you have your (or […]

2022 Last-Minute Year-End Tax Strategies for Your Stock Portfolio

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Last-Minute Year-End Tax Planning Strategies When you take advantage of the tax code’s offset game, your stock market portfolio can represent a little gold mine of opportunities to reduce your 2022 income taxes.  The tax code contains the basic rules for this game, and once you know the rules, you can apply the correct strategies.  […]

2022 Last-Minute Year-End General Business Income Tax Deductions

Year-End General Business Income Tax Deductions

Business Income Tax Deductions The purpose of this blog is to get the IRS to owe you money. Of course, the IRS will not likely cut you a check for this money (although, in the right circumstances, that will happen), but you’ll realize the cash when you pay less in taxes. Here are six powerful […]

Act Now: Claim Your 2020 and 2021 Employee Retention Credit (ERC)

Employee Retention Credit (ERC)

During 2020 and 2021, you may have qualified for the Employee Retention Credit (ERC). With the ERC, you found (or could find) tax credits of up to $26,000 per employee. That’s a lot. With 10 employees, that’s $260,000. Key point. If you have not claimed the ERC, you can amend your 2020 and 2021 payroll […]

Act Now: Earn 9.62 Percent Tax-Deferred

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Through October 2022, you can buy Series I bonds that pay 9.62 percent interest. And you receive that rate for six months from the time of purchase. What happens after that? On November 1, 2022, the U.S. Treasury Department sets a new six-month rate equal to the fixed rate (currently zero) plus the Consumer Price […]