Debtors typically experience a feeling of relief when a creditor agrees to forgive their debt. But that feeling often is replaced by shock and confusion when they learn they owe taxes on so-called “cancellation of debt” (COD) income. Read on to… Read more »
Read Full Newsletter »Exceptions and Exclusions, Recourse vs. Nonrecourse Debt, Tax Treatment of Debt Forgiveness, Watch Out for Tax Bills Delivered COD
After months of negotiations, Congress finally passed the long-awaited Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0). This part of the omnibus funding package builds on the SECURE Act of 2019 and contains major changes in the required… Read more »
Read Full Newsletter »401(k), 403(b), 457(b), 5 Major Tax-Favored Retirement Plan Changes for Individuals under New Law, 50 or older, early withdrawals, Emergency Expenses, Emergency Savings Accounts, Failure to comply with RMD, Increased Starting Age for RMDs, individual retirement annuities, IRS penalties, Larger Catch-Up Contributions, Major Tax Changes, Major Tax-Favored Retirement Plan Changes for Individuals under New Law, minimum distribution (RMD), Penalty-Free Withdrawals, Penalty-Free Withdrawals for Designated Emergency Expenses, profit-sharing plans, Reduced Penalty for Failure to Take RMDs, Retirement Plan Emergency Savings Accounts, RMDs, Salary reduction catch-up contributions, SECURE 2.0, Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0), SIMPLE plans, Starting Age for RMDs, Starting in 2025, Tax Year 2023, tax-deferred retirement accounts, Traditional IRA
Are you contemplating some significant improvements to your home? Whether it’s adding a pool to assist with a medical condition, finishing a basement or installing energy-saving equipment, you may be in line for generous tax breaks under current law. Here are… Read more »
Read Full Newsletter »Adjustment to Basis, Four Tax Breaks for Home Improvements, home acquisition indebtedness, Home Improvements, Home Sale Gain Exclusion, Inflation Reduction Act, IRA, itemized deductions, Medically Necessary Improvements, Mortgage Interest Deductions, Residential Energy Credits, Tax Cuts and Jobs Act, Tax Savings, TCJA
Many self-employed individuals are eligible to make annual contributions to Roth IRAs, despite having healthy earnings from their businesses. But some haven’t yet taken advantage of this retirement saving strategy. Making annual Roth contributions can have a big upside by allowing… Read more »
Read Full Newsletter »401(k), Adjusted Gross Income, AGI, Are You Missing the Roth IRA Boat?, common misconceptions, Contributions, Contributions to Roth IRAs, Deductible vs. Nondeductible, Income Restrictions, individuals, IRA, MAGI phase-out range, maximum deductible SEP, Need Help, Roth IRA, Roth IRA Basics, self-employed, self-employed individuals, SEP, simplified employee pension, tax benefits of contributing to a Roth IRA, The Truth about Income Restrictions, Traditional IRA
Contribute More to Your FSA in 2023 axpayers that participate in employer-sponsored health Flexible Spending Accounts (FSAs) can contribute more in 2023. The annual contribution amount will rise to $3,050 (up from $2,850 in 2022). FSAs allow owners to pay… Read more »
Read Full Newsletter »Charitable Donations, Contribute More to Your FSA in 2023, Court: Charitable Donations Must Be Properly Substantiated, Do You Know What Your Filing Status Is?, employer-sponsored health Flexible Spending Accounts (FSAs), equired Minimum Distributions: Important Considerations for Certain Taxpayers, Federal Tax News for Individuals, inherited IRAs and other plans, possible major retirement savings package, Possible Tax Legislation by Year End — and Beyond, SECURE Act 2.0, Seniors
In today’s uncertain marketplace, businesses are being forced to re-evaluate their working capital needs. Some managers have learned the hard way during the pandemic that operating “lean” has its limits. What Is Working Capital? Working capital — current assets minus current… Read more »
Read Full Newsletter »2022 Working Capital Survey, Assets, Days inventory outstanding (DIO), Days payables outstanding (DPO), Days sales outstanding (DSO), Defer payables, How Has the Pandemic Affected Working Capital Levels?, How Is Working Capital Evaluated?, Improving Working Capital Management, It's Time for Businesses to Rethink Their Working Capital Practices, Liabilities, liquidity, Optimize inventory, Rethink Working Capital Practices, Speed up collections, What Is Working Capital?
The IRS recently announced many inflation adjustments for the 2023 tax year. IRS Revenue Procedure 2022-38 provides details about these amounts. Because inflation is high, many of the amounts for 2023 will change more than they have in recent years. Here… Read more »
Read Full Newsletter »2023 Social Security tax, inflation adjustments, inflation adjustments for 2023, IRS Revenue Procedure 2022-38, Social Security Administration, Social Security tax, Social Security wage base, Social Security wage base increase, Social Security wage base increase in 2023, Tax Benefit Increases for 2023
Tax Credit Helps Employers Who Hire Certain Employees If your business is looking to hire, you should know about a valuable one-time tax credit. The Work Opportunity Tax Credit (WOTC), which is available through 2025, encourages employers to hire from… Read more »
Read Full Newsletter »Construction Businesses Requirements to Claim Credits, Contributions to 401(k)s and Other Retirement Accounts Going Up in 2023, Federal Tax News for Businesses, Inflation Reduction Act (IRA), No Deductions for Political Advertising Expenses, Tax Credit Helps Employers Who Hire Certain Employees, Tax Responsibilities for Nonemployees, The Work Opportunity Tax Credit, WOTC, WOTC IRS FAQ List
It’s time for year-end tax planning. Every fall, small business owners should review their tax situations to determine steps they should consider to reduce their federal income taxes for the current year — and beyond. Fortunately, no significant unfavorable federal tax… Read more »
Read Full Newsletter »100% First-Year Bonus Depreciation for Last-Minute Asset Additions, 401(k), businesses using a pass-through entity, Defined Benefit Pension Plans, Heavy SUV, How Can Small Business Owners Lower Taxes for 2022, Jobs Act (TCJA), Pickup or Van Write-Offs, publicly traded partnerships, QBI Deductions, qualified business income, REIT dividends, SECURE Act, self-employed, SEP-IRA, SIMPLE-IRAs, Small Business Tax Law Changes under the IRA, Tax-Favored Retirement Plans, Timing of Business Income and Deductions, Year-End Tax Planning
You’ve probably heard that the newly enacted Inflation Reduction Act of 2022 (IRA) includes a package of measures to fight climate change, including tax incentives for both consumers and businesses. Among other things, the law extends and revises a tax credit… Read more »
Read Full Newsletter »2022 and 2023 Clean Vehicle Models, beginning in 2023, Clean Vehicles, Internal Revenue Code Section 30D, IRA imposes limits on vehicle sale prices, New Rules for EV Tax Credits Under a New Law, The EV tax credit, The Inflation Reduction Act, Used Clean Vehicles
If you own a successful small business with no employees, you might be ready to set up a retirement plan. Or you might want to upgrade from a more-basic SIMPLE IRA or Simplified Employee Pension (SEP) plan. Here are two options —… Read more »
Read Full Newsletter »Defined Benefit Pension Plans, How Much Can You Contribute to a Solo 401(k)?, Self-Employed Business Owners, Self-Employed Business Owners: What's the Right Retirement Plan?, Solo 401(k)s, What's the Right Retirement Plan
In today’s tough economy, you may find yourself struggling to cover your day-to-day expenses. But rising interest rates are making traditional loans more expensive. In such an environment, you might consider borrowing funds from your 401(k) retirement account, if your plan… Read more »
Read Full Newsletter »401(k) Loans, Borrowing from your 401(k), Cautionary Cons, double taxation, early withdrawal penalty, Fees are another considerations, Hardship Withdrawal, Hardship Withdrawal Alternative, Potential Pros
Proposed Tax Credits for Chip Manufacturers Bipartisan support in Congress for a (limited) tax bill? It’s true! The pared-down CHIPS Act, which would provide tax credits for companies to invest in semiconductor manufacturing, has support from lawmakers in both parties…. Read more »
Read Full Newsletter »Cannabis Businesses Face Many Challenges, Employers Charged the Trust Fund Recovery Penalty in 2 Cases, Federal Tax News for Businesses, Maintain Meticulous Records to Protect Your Deductions, Proposed Tax Credits for Chip Manufacturers, When Do Businesses Need to Withhold Tax on Certain Payments?
The COVID pandemic prompted numerous temporary changes to the tax laws for 2020 and 2021. From Economic Impact Payments, penalty-free IRA distributions and the expanded child tax credit to Employee Retention Credits and credits for paid leave, taxpayers had ample areas… Read more »
Read Full Newsletter »Amend Tax Return, Do You Need to Amend Your Tax Return?, How to Amend Your Return, How To Minimize Penalties, Late Fees and Interest, Minimize Penalties, Need to Amend, Penalties, Reasons to Amend