With the release of new IRS regulations, the many restrictions on the clean vehicle tax credit for electric vehicles (EVs) take full effect. As a result, only 22 EVs qualified for the clean vehicle tax credit as of April 18, 2023, although this number will likely grow during the year. But the tax rules give you some other ways to claim a federal tax credit for an EV, such as by leasing an EV, buying a used EV, or claiming the commercial clean vehicle credit for business-use EVs.

The IRS imposes a 20 percent penalty if you underpay your taxes by the greater of $5,000 or 10 percent. But you can avoid this penalty completely by filing IRS Form 8275 and adequately disclosing the item or tax position the IRS might later disallow. To obtain such relief, you need show only a reasonable basis for your position—not a high bar.

Is it possible for an S corporation to pick up, say, the $21,000 tab for the more-than-2-percent shareholder’s family health insurance—and put that in box 1 of the shareholder’s W-2 as wages—but for the shareholder to get a zero deduction on Form 1040, Schedule 1, line 17? Yes, this can happen when an ugly rule comes into play.

Discover an innovative continuing education opportunity that combines learning with a luxurious resort experience. This unique event, held at a five-star resort, allows participants to earn business-related education credits and potentially enjoy tax deductions for travel and meals.

Small and solo business owners face some tricky yet often rewarding rules when it comes to business tax deductions for health insurance and other medical expenses. In this article, you’ll find answers to six questions that will help you along the path to your rightful business deductions.

Estate planning is essential for everyone, regardless of wealth. With a will and a living trust, you can ensure your assets are distributed according to your wishes, avoid probate, and maintain your financial privacy. Remember to regularly review and update your estate plan to accommodate life changes and fluctuating tax rules.

Discover how family loans can help homebuyers secure better interest rates. Learn about the applicable federal rate (AFR), the tax implications, and the clever loopholes you can use to avoid complications. Dive into the essential steps for proper documentation, and secure your relative’s chance to claim valuable deductions on their home loan.

Understanding phaseouts helps you create more efficient tax planning strategies, as they provide crucial information on the income limits for various tax benefits based on your filing status. With this knowledge, you can make informed decisions on how to allocate your income and investments to minimize your tax liability and maximize your after-tax benefits.