Generally, individuals who claim the standard deduction on their tax returns can’t deduct charitable contributions. But for 2021, the Taxpayer Certainty and Disaster Tax extended parts of an earlier law that allowed individuals to claim charitable contributions up to $300 for 2020. Those who file married joint returns may claim up to $600 for 2021. … Read More
In order to prepare for a business audit, an IRS examiner generally does research about the specific industry and issues on the taxpayer’s return. Examiners may use IRS “Audit Techniques Guides (ATGs).” A little-known secret is that these guides are available to the public on the IRS website. In other words, your business can use … Read More
U.S. Senate Finance Committee Chair Ron Wyden (D-OR) unveiled draft tax legislation for proposals being discussed in Congress. According to a press release, the law would close loopholes that allow rich investors and mega-corporations to use pass-through entities, primarily partnerships, to reduce their tax bills. Wyden stated that “70% of partnership income accrues to the … Read More
If you’re a business owner and you’re getting a divorce, tax issues can complicate matters. Your business ownership interest is one of your biggest personal assets and in many cases, your marital property will include all or part of it. Tax-free property transfers You can generally divide most assets, including cash and business ownership interests, … Read More
Federal tax relief is now available to Hurricane Ida victims in parts of Pennsylvania. They now have until Jan. 3, 2022, to file various individual and business tax returns and make tax payments. The IRS has also provided relief to Hurricane Ida victims in Louisiana, Mississippi, New Jersey and New York. The IRS is offering … Read More
What if you decide to, or are asked to, guarantee a loan to your corporation? Before agreeing to act as a guarantor, endorser or indemnitor of a debt obligation of your closely held corporation, be aware of the possible tax consequences. If your corporation defaults on the loan and you’re required to pay principal or … Read More
The $3.5 trillion human infrastructure bill (the “Build Back Better Act”) is progressing through Congress. The House Ways and Means Committee has approved its sections of the bill that mostly address social issues and plans to pay for them with tax increases on the wealthy and corporations. Democratic committee members dispatched some 66 amendments offered … Read More
If your business receives large amounts of cash or cash equivalents, you may be required to report these transactions to the IRS. What are the requirements? Each person who, in the course of operating a trade or business, receives more than $10,000 in cash in one transaction (or two or more related transactions), must file … Read More
Eligible families are now receiving their September advance Child Tax Credit payments. This third batch of advance monthly payments, totaling about $15 billion, is reaching about 35 million families. Future payments are scheduled for October 15, November 15 and December 15. Eligible families who didn’t receive payments in July or August and are getting their … Read More
As we approach the holidays and the end of the year, many people may want to make gifts of cash or stock to their loved ones. By properly using the annual exclusion, gifts to family members and loved ones can reduce the size of your taxable estate, within generous limits, without triggering any estate or … Read More