How Much Can You Give as a Tax-Free Gift? As we navigate the complexities of financial planning and family support, it’s crucial to understand the rules surrounding gift taxes. One question that often arises is: “How much can I gift tax free to a family member without triggering tax consequences?” Let’s unwrap the details of…
FinCen Beneficial Ownership Reporting What is the Beneficial Ownership Information Reporting Rule? The upcoming implementation of the Financial Crimes Enforcement Network’s (FinCEN) Beneficial Ownership Information (BOI) reporting rules on January 1, 2024, may have raised questions for many small business owners.While navigating new regulations can be challenging, understanding the BOI rules and their implications is…
§179 vs. BONUS DEPRECIATION Either choice brings large deductions Eventually all business owners will need to purchase or replace assets. When this happens, they need to determine how the cost of those assets will be recovered. Typically, the cost of business assets is recovered over their expected life through depreciation. If your goal is to…
PAYROLL TAX DEFERRAL What this means for you On Aug. 8, 2020, a Presidential Memorandum was issued allowing employers the option to defer withholding and payment of the employee’s portion of Social Security tax if the employee’s wages are below $4,000 on a bi-weekly basis. The relief is available for employers and generally applies to…
HANDLING BUSINESS LOSSES CARES Act eases the rules In 2017, the Tax Cuts and Jobs Act (TCJA) provided that net tax losses from businesses in excess of an inflation-adjusted $500,000 for joint filers, or an inflation-adjusted $250,000 for other taxpayers, are to be treated as net operating loss (NOL) carryforwards in the following tax year….
WORKING FROM HOME? Know what’s deductible If you’re self-employed and use part of your home for business, you may be able to deduct expenses allocable to the business use. The home office deduction is available for homeowners and renters. To qualify for the deduction, you must use the space in your home regularly and exclusively…
YEAR-END TAX SAVING STRATEGIES What makes sense for you? The year is almost over, and you want to reduce your taxable income. What options are still available? The answer depends on your specific financial position. If you have investments that are doing poorly, you might want to consider selling them so you can claim a…
PREPARING FOR YOUR TAX APPOINTMENT Make sure to have all your documents Nothing makes a tax preparer happier than a prepared client. Here are a few tips for going to your tax appointment with everything you need. Look at last year’s tax return for income and expense reminders. Make sure you have all the 1099s…
EARNING MONEY FROM A SIDE JOB? Tips for avoiding the hobby loss rules Like many of us, you’ve probably dreamed of turning a hobby or pastime into a regular business. Or perhaps the current economic condition necessitated that you turn to a side job to earn extra money. You won’t have any unusual tax headaches…
RECENT LEGISLATION CHANGES SOME IRA RULES How does this affect you? The CARES Act suspended the required minimum distribution (RMD) rules for 2020. This means any RMD a taxpayer would have been required to make before Dec. 31, 2020, as well as any RMD required to be made by April 1, 2020, based on meeting…