New plug-in vehicles are now available for a tax break. The IRS has added models to its list of vehicles that are eligible for the plug-in electric motor vehicle tax credit. The tax code provides a credit to buyers of certain electric passenger vehicles and light trucks. The maximum credit allowed for a qualifying vehicle … Read More
If you have a traditional IRA or tax-deferred retirement plan account, you probably know that you must take required minimum distributions (RMDs) when you reach a certain age — or you’ll be penalized. The CARES Act, which passed last March, allowed people to skip taking these withdrawals in 2020 but now that we’re in 2021, … Read More
Did you know that eight out of 10 taxpayers receive their income tax refunds using direct deposit? The reason, according to the IRS, is that filing electronically and choosing direct deposit is the fastest way to receive a refund. In fact, the IRS uses the same electronic transfer system to deposit tax refunds that’s used … Read More
The Congressional Budget Office (CBO) has announced that the estimated federal budget deficit for the first quarter of fiscal year 2021 is $572 billion, $215 billion more than the deficit recorded during the same period in 2020. In its “Monthly Budget Review: December 2020,” the CBO reports that first-quarter receipts totaled $803 billion, which was … Read More
As a formal estate planning term, “tangible personal property” likely won’t elicit much emotion from you or your loved ones. However, the items that make up tangible personal property, such as jewelry, antiques, photographs and collectibles, may be the most difficult to plan for because of their significant sentimental value. Without special planning on your … Read More
The IRS has provided more COVID-19 relief for qualified opportunity funds (QOFs) and their investors. Notice 2021-10 extends relief that the IRS provided in June 2020. Among other things, the relief extends certain deadlines relating to the 180-day investment requirement for QOF investors, relaxes the requirements of the 90% investment standard for QOFs, disregards the … Read More
Many business owners generate financial statements, at least in part, because lenders and other stakeholders demand it. You’re likely also aware of how insightful properly prepared financial statements can be — especially when they follow Generally Accepted Accounting Principles. But how can you best extract these useful insights? One way is to view your financial … Read More
A new year can bring a fresh start, including for your tax situation. That’s why the IRS is reminding people to check their 2021 withholding by using the IRS Tax Withholding Estimator online tool. Employees can avoid penalties by ensuring they’re having enough tax withheld, but also keep more cash in their pockets by not … Read More
Here’s a reminder about the IRS’s new e-filing requirements for tax-exempt organizations (EOs). In 2019, The Taxpayer First Act amended the tax code to require most EOs to e-file their returns and related forms. The requirement to e-file applies to tax years beginning after July 2, 2019. EOs that file Form 990 or Form 990-PF … Read More
The Small Business Administration (SBA) announced that the Paycheck Protection Program (PPP) reopened the week of January 11. If you’re fortunate to get a PPP loan to help during the COVID-19 crisis (or you received one last year), you may wonder about the tax consequences. Background on the loans In March of 2020, the CARES Act … Read More