Should you add to your charitable donations before the end of the year? From a tax perspective, it generally depends on whether you expect to itemize deductions this year or if you will be claiming the standard deduction. All other things being equal, it makes sense to “bunch” donations in the tax year it [...]
Tax breaks seem to come and go, but one of the biggest and best “tax shelters” around is still standing. Thanks to Section 121 of the tax code, a taxpayer can exclude from federal income tax up to $250,000 of gain from the sale of a home—$500,000 if you are married and file a joint [...]
The reach of the electronic age seems to know no bounds, but we are still figuring out some of the fall-out. For example, consider the estate planning consequences when you leave online accounts and files when you pass away, not to mention passwords that have not been disclosed to others. In this day and [...]
Tax season is right around the corner, so we want you to be prepared. As we typically do, we have created this year-end tax planning letter to assist you with certain tips that you should consider before December 31st. This is the time to reassess your overall tax picture for 2021 so you can [...]
For our client with 100 or more employees, there have been several recent announcements and court rulings related to COVID-19 vaccinations and testing that should be of interest. On November 4th, OSHA published its Emergency Temporary Standard or "ETS" that established certain minimum vaccine and testing requiremetns for private US employers with 100 or more [...]
Highlights: The 401(k) deferral limit increased to $20,500. The FICA taxable wage base increased to $147,000. The maximum plan compensation limit increased to $305,000 and the maximum annual addition increased to $61,000. Indexed Plan Limits 2022 2021 Deferral Limits 401(k) Plan or SAR-SEP $20,500 $19,500 403(b) Plan or 457 Plan 20,500 [...]
Under current tax law, individual taxpayers are not permitted to deduct casualty losses from catastrophic events like Hurricane Ida, wildfires and floods…right? Wrong. Although recent legislation has tightened the rules, you may still claim deductions, within certain limits, for losses incurred in a federally designated disaster area. Following are the answers to some frequently [...]
The IRS has announced the depreciation limits for vehicles placed in service in 2021. For instance, the maximum first-year deduction for a passenger car, including “bonus depreciation,” is $18,200 (up from $18,100 for cars placed in service in 2020). Deductions are then based on the percentage attributable to business use. Note: Comparable rules apply to [...]
Generally, it takes a long time—39 years to be exact—to fully recover the cost of a business building through regular depreciation deductions. However, your business may benefit from faster write-offs if it conducts a “cost segregation study.” In effect, the study breaks out certain building components so the costs can be deducted over a shorter [...]
A SERP may sound like a creature from a science fiction movie, but it is actually a popular retirement savings vehicle for the top brass. Typically, the SERP—an acronym for Supplemental Executive Retirement Plan—is used to complement a 401(k) or other qualified plan. It offers generous benefits to a chosen few and enables an employer [...]