Uncertain Tax Position? File Form 8275 to Avoid Penalties
Are you considering a bold tax position that may significantly reduce your taxes? If approved by the IRS, it’s a win. But if disapproved, be prepared to face a considerable tax penalty. The IRS imposes a 20 percent penalty for substantial tax underpayment. For instance, if the IRS finds you underpaid your taxes by $50,000, […]
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 […]
4 Most Important Tax Benefits for Having Dependents in Your Family
When you start working on your tax planning strategies for the past year, you’ll inevitably see the word “dependent” come up.The term may seem a little vague at first, but a dependent is simply someone who depended on you for their care and income last year. Our children are often the people who come to […]
Do You Want to Know Where Your Tax Refund Is? How To Check Your Refund Status
It’s that time of year. The sun is shining, the days have gotten longer, flowers are blooming. It can only mean one thing: tax season is here. For Americans, that means you’re likely gathering up your documents including W2’s and 1099s and preparing to file. Or, if you’re an early bird, you’re patiently awaiting the […]
First-Time Investor? Here’s What You Need to Know About Taxes
With the advent of apps and web services geared toward casual, amateur investors—Robinhood, Acorns, and Zacks Trade, for example—the number of people trying their hand at trading stocks is increasing daily. This can be a great way to make some money and enjoy yourself while doing it. But if you’re not prepared come tax time, […]
6 Tax-smart College Savings Strategies That Can Be Helpful For The Parents
The average all-in cost — tuition and fees — to attend a private, four-year college in the 2018-19 academic year was $35,830, according to Business Insider. That’s enough money to make any parent anxious. Families with more than one child have to worry about the compounding cost of their children’s education. The point? All the more […]
3 Things You Need To Know About Divorce-related Tax Issues For Small-business Owners
As if getting a divorce isn’t hard enough, there are financial ramifications to consider. Who gets the house? How do you separate your finances? These issues are compounded when a couple owns a business together. A divorce can bring about all kinds of tax consequences and anyone considering ending their marriage needs to think about […]
6 Proven Tax Reduction Strategies for the Self-Employed
There are many benefits to being self-employed: you’re your own boss, you get to choose your own hours, and come and go as you please. You get to choose what work you take on and kindly demure projects you’d rather not be a part of. But what you don’t get to do is have your […]
Tax Guide 101 For Vacation Rentals
Managing or owning a vacation rental can be a great side business and lucrative enterprise. But, like anything, there are tax guidelines that need to be kept in mind when navigating the vacation rental world. In this guide, we’ll do a crash course Tax Guide 101 For Vacation Rental so you can be prepared for […]