One advantage of inheriting an IRA from your spouse is that you’re entitled to transfer the funds to a spousal rollover IRA. The rollover IRA is treated as your own IRA for tax purposes, which means you need not begin taking required minimum distributions (RMDs) until you reach age 72. This differs from an IRA … Read More
Are you exploring whether alternative energy technologies can help you manage the cost of energy use in your business? If so, you should be aware of a federal income tax benefit: the business energy credit. It’s substantial and applies to the acquisition of alternative energy property. The credit equals up to 30% of the basis … Read More
The premium tax credit (PTC) is a refundable credit that helps individuals and families pay for insurance obtained from a Health Insurance Marketplace (commonly known as an “Exchange”). A provision of the Affordable Care Act (ACA) created the credit. The American Rescue Plan Act (ARPA), signed into law in March 2021, made several significant enhancements … Read More
The IRS will begin sending advance monthly Child Tax Credit (CTC) checks starting on July 1, according to testimony to Congress by the IRS Commissioner. The American Rescue Plan Act (ARPA) expanded the CTC for 2021 for eligible taxpayers. Under the law, the IRS must make monthly advance payments (generally by direct deposit), from July … Read More
If you were to ask your IT staff about how tech support for remote employees is going, they might say something along the lines of, “Fantastic! Never better!” However, if you asked remote workers the same question, their response could be far less enthusiastic. This was among the findings of a report by IT solutions … Read More
In April 13 testimony before the U.S. Senate Finance Committee, IRS Commissioner Charles Rettig said that he believes the annual “tax gap” may total $1 trillion annually. The tax gap is the difference between taxes owed the U.S. government and taxes paid. He noted that this amount was more than double the $441 billion amount … Read More
As a business owner, you should be aware that you can save family income and payroll taxes by putting your child on the payroll. Here are some considerations. Shifting business earnings You can turn some of your high-taxed income into tax-free or low-taxed income by shifting some business earnings to a child as wages for … Read More
If you’re fully vaccinated now, you may want to donate some of your time to charity. Your generosity may entitle you to some tax breaks. Although tax deductions aren’t allowed for the value of the volunteer services you perform for a charity, some deductions are permitted for the out-of-pocket costs you incur while performing them. … Read More
Are you considering buying or replacing a vehicle that you’ll use in your business? If you choose a heavy sport utility vehicle (SUV), you may be able to benefit from lucrative tax rules for those vehicles. Bonus depreciation Under current law, 100% first-year bonus depreciation is available for qualified new and used property that’s acquired … Read More
Are you thinking about launching a business with some partners and wondering what type of entity to form? An S corporation may be the most suitable form of business for your new venture. Here’s an explanation of the reasons why. The biggest advantage of an S corporation over a partnership is that as S corporation … Read More