December 2024
Game On: TCJA Winners and Losers—Business on the Chopping Block
Expect tax changes ahead as key provisions of the Tax Cuts and Jobs Act (TCJA) approach their 2025 expiration. Some changes, such as the return of pre-TCJA individual rates and the loss of the qualified business income (QBI) deduction, could mean higher taxes. Other changes could mean lower taxes. For sure, changes are on the way.
2024 Year-End Tax Strategies for Crypto Investors
2024 has been a banner year for cryptocurrency owners, but with profits come taxes. Fortunately, there are many things crypto owners can do before year-end to reduce the taxes they owe on their crypto profits, including harvesting losses (if any), selling and repurchasing crypto to step up their basis, donating crypto to charity, gifting crypto, or establishing a self-directed IRA or solo 401(k) for crypto.
Surprise: Related Party Rules Do Not Kill Prepaid Rent Strategy
How do the IRS safe-harbor prepaid expense rules apply to related parties? For example, can you use this prepaid safe-harbor rule if you own 100 percent of both the building and the business?
Tax Credits for EVs: What’s New?
Tax credits for electric vehicles (EVs) were expanded and revamped starting in 2023. There are three separate tax credits available for EV purchasers. Both the clean vehicle credit and the previously owned clean vehicle credit can now be claimed at the point of sale, but the many restrictions on these credits have limited their appeal. Most people are leasing EVs and benefitting from the third option: having the dealer pass its commercial clean vehicle credit on to them.
Individuals on the Brink: The TCJA Tax Shuffle Will Begin Soon
The Tax Cuts and Jobs Act (TCJA) brought sweeping tax changes for individuals, but many favorable and unfavorable provisions are set to expire at the end of 2025. That means tax law changes—some good, some bad.
Do You Now Need to Amend Your 2021 Tax Return for the 2021 ERC?
If you or your corporation or partnership applied for the 2021 Employee Retention Credit (ERC), it’s time to get your 2021 tax return(s) correct, whether or not you or your corporation received the ERC. Hopefully, you have already done so. But if not, here’s what you need to do.
U.S. Supreme Court Makes It Easier to Challenge IRS Regulations
The U.S. Supreme Court has struck a major blow against the IRS by overruling a 40-year-old decision that required courts generally to defer to federal agency regulations so long as they were reasonable. With the end of such “Chevron deference,” courts will now make their own decisions based on their own interpretations of the tax laws passed by Congress. This leaves IRS regulations much more vulnerable to legal attack.
When Not to Get Married
Thinking about getting married? Love may be the main reason to say “I do,” but don’t overlook the tax and financial implications that come with it. This eye-opening article reveals when marriage might actually hurt your wallet—and what you need to know before making it official.
November 2024
2024 Last-Minute Year-End General Business Income Tax Deductions
Your year-end tax planning doesn’t have to be hard. This article takes your daily business activities and identifies easy year-end tax-planning moves you can make today. Our six strategies will increase your tax deductions, which will reduce your taxable income so the government gets less of your 2024 cash.
2024 Last-Minute Vehicle Purchases to Save on Taxes
Here’s an easy question: Do you need more 2024 tax deductions and credits? If so, continue reading. Next easy question: Do you need a replacement business vehicle? If so, you can simultaneously solve or mitigate both the first problem (needing more deductions and credits) and the second problem (obtaining a replacement vehicle), but you must get your replacement vehicle in service on or before December 31, 2024. This article helps you find the right vehicle for the deduction or credit you desire.
2024 Last-Minute Year-End Tax Deductions for Existing Vehicles
Yes, December 31 is just around the corner. That’s your last day to find tax deductions available from your existing business and personal (yes, personal) vehicles that you can use to cut your 2024 taxes. In this article, you will learn how to find and release tax deductions that the tax code trapped inside your existing business cars, SUVs, trucks, and vans. And you will learn how the Tax Cuts and Jobs Act makes it possible for you to find a big deduction from your existing personal vehicle (note the terms “existing” and “personal”).
2024 Last-Minute Tax Strategies for Marriage, Kids, and Family
Are you thinking of getting married or divorced? If so, you need to consider December 31, 2024, in your tax planning. Here’s another question: Do you give money to family or friends (other than your children who are subject to the kiddie tax)? If so, you need to consider the zero-tax planning strategy. And now, consider your children who are under age 18. Have you paid them for work they’ve done for your business? Have you paid them the right way? You’ll find the answers here.
2024 Last-Minute Year-End Tax Strategies for Your Stock Portfolio
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 2024 income taxes. The tax code contains the basic rules for this game, and once you know the rules, you can apply the correct strategies. In addition to saving taxes with the game of offset, you can avoid paying taxes on stock appreciation by gifting stock to charity, your parents, and your children who are not subject to the kiddie tax.
2024 Last-Minute Year-End Retirement Deductions
Does your business have a retirement plan for you and, if you have employees, your employees? It should. The tax code gives you good reasons to get your retirement plan in place and perhaps make changes in existing plans.
2024 Last-Minute Year-End Medical Plan Strategies
Are you eligible for COVID-19 tax credits for yourself and/or your employees? Have you reimbursed your employees (including your employee-spouse) as stipulated in your health reimbursement arrangements? And if you operate as an S corporation, do you have your health insurance set up correctly for your best tax deduction? In this article, we help with these matters and more.
2024 Last-Minute Section 199A Tax Reduction Strategies
Remember to consider your Section 199A deduction in your 2024 year-end tax planning. If you don’t, you could end up with a useless $0 for your deduction amount. We’ll review three year-end moves that simultaneously (a) reduce your income taxes and (b) boost your Section 199A deduction.
October 2024
Three Possible Ways to Deduct Your Dog or Cat
Family pets are never deductible. But expenses for dogs, cats, and other animals can be deductible if the animal qualifies as a medical expense, business expense, or charitable deduction.
Got IRS Penalties? Know the Rules, Pay Nothing
If you got a bill from the IRS saying you owe a penalty, don’t pay it just yet. This guide can help you get those penalties removed—or even get a refund if you’ve already paid. The IRS can charge hefty penalties if you or your company files tax returns late, doesn’t pay taxes on time, or fails to deposit your employment taxes. We’ll show you how to get these penalties removed by using the right approach and keywords.
Know the Three Ways the Tax Law Treats Personal Property Rentals
Tax treatment for renting equipment and other personal property depends on whether the activity qualifies as a business or a for-profit activity. Rental business income and expenses are reported on Schedule C and subject to self-employment tax. Rental for-profit activity income and expenses are reported on Schedule 1 and not subject to self-employment tax.
New Road Map for Disputing an IRS Disallowance of Your ERC
The IRS recently announced a significant update regarding employee retention credit (ERC) claims. You now have two years to appeal an IRS disallowance, as a webpage published on September 19, 2024, explains. This is great news compared with the typical 30-day deadline, but it’s important to understand the new risks.
List of Popular Vehicles with GVWRs Greater Than 6,000 Pounds
As you likely know, vehicles with gross vehicle weight ratings (GVWRs) greater than 6,000 pounds get the best tax breaks. In this article, we give you a list of some of the popular vehicles that qualify for these breaks.
Beware of Tax Refund Offsets
Taxpayers’ federal income tax refunds can be taken by the federal government to satisfy outstanding debts for child or spousal support, state income tax, school loan defaults, unemployment compensation debts, and other debts owed to federal agencies. The IRS can also deduct unpaid taxes from refunds
HSA Secrets for Seniors: Contributions beyond Age 65
Most people must stop contributing to their health savings accounts when they turn age 65 and apply for Medicare. But if you have (or your spouse has) a large employer HSA-eligible health plan, you may be able to continue making contributions until you’re close to age 70. To do so, you must not collect Social Security or enroll in Medicare.
QBI Deduction: Maximize It Before It’s Gone
Learn how to make the most of the qualified business income (QBI) deduction before it expires in 2025. This article outlines the basics of the deduction, potential limitations, and practical strategies to help you maximize your benefits. If you’re a business owner or high earner, this is a timely opportunity to review your options and make informed tax planning decisions.
Distribution of Average Tax Rates by Income
Congress is at it again, thinking of new ways to change the tax system. And since this is an election year, there’s lots of that talk. To provide some clarity, this article shows the average tax rates that high- and low-income earners pay for income, payroll, excise, and corporate taxes.
September 2024
BOI Latest Updates for Dissolved and Disregarded Entities
FinCEN released new FAQs clarifying when corporations and LLCs are dissolved for FinCEN Business Ownership Information reporting purposes, which is different from tax purposes. FinCEN also added clarity to taxpayer ID numbers for single-member LLCs and other disregarded entities.
Employee Retention Credit (ERC) Update
Here are the latest developments on the Employee Retention Credit (ERC). First, the IRS launched a new IRS payback scheme. Second, there is looming legislation that could change the ERC landscape. Third, learn what you need to know if you’re still waiting on your claim.
The Department of Labor Makes It Harder to Hire Independent Contractors
Independent contractors are not covered by the Fair Labor Standards Act, which establishes a national minimum wage and overtime standards for employees. In an effort to require more businesses to pay overtime to workers, the U.S. Department of Labor (DOL) has adopted a new six-factor test that makes it more difficult for you to classify workers as independent contractors instead of employees.
The Supreme Court Likely Shook Up Your Buy-Sell Agreement
If your buy-sell agreement uses company-owned life insurance to buy back your shares after you die, your estate may now have to pay more tax. A recent U.S. Supreme Court decision just increased your company’s estate tax value because of that company-owned life insurance.
Unlock Aircraft Tax Deductions: Overcome Passive Loss Limits
One of the biggest hurdles to deducting losses from the business use of an aircraft is the passive activity loss limitation. Even with careful planning, you might find yourself stuck with passive losses that can’t offset income from other sources. This article details the tax strategies you need to effectively deduct your aircraft losses and navigate the complex passive loss rules.
Tax Deductions for Dues and Expenses of Being a Mason or a Lion
Tax law favors and allows deductions for civic and public service clubs and even names some favored clubs. But tax law does not allow dues deductions for airline, hotel, country, golf, athletic, and business-meal clubs.
The Cost of Trust: A Cautionary Tale for Minority Shareholders
Discover the devastating consequences of misplaced trust in business partnerships, through James Maggard’s story. Learn how a lack of oversight and professional guidance can lead to tax and financial unfairness, even for the most well-intentioned business owners.
Side Fund Increases Benefits When Cutting Social Security Taxes
Increase your Social Security retirement income by reducing your Social Security taxes and investing the savings. Explore how investing your tax savings in a side fund can lead to a higher overall benefit, while preserving essential benefits such as Medicare and spousal support.
Tax Planning to Winter in Florida and Summer in Massachusetts
You can plan your tax-deductible business life to avoid cold winters and hot summers. To do this, you need to know what a tax home is and where your tax home is located. The good news is that you have just one tax home, unless you are one of those rare individuals who have no physical home.
