If you have been feeling the pinch at the gas pumps lately, at least there is some tax consolation: The standard mileage rates used by certain taxpayers in lieu of deducting actual expenses are going up for the last six months of 2022. Effective on July 1, 2022— The rate for business driving increases to [...]
Summer is a time for R&R, but also offers tax-saving opportunities for individuals and small business owners. Here are seven ways to reduce tax liability this summer. Host an employee gathering. Prior to 2018, your business could deduct 50% of the cost of qualified business entertainment expenses. But this deduction has generally been eliminated. Key [...]
If your child will be attending college or graduate school next year, you probably do not have to be told about the sky‑high cost of higher education. You already know all about it from personal experience. “At least my child has qualified for a scholarship to a prestigious university. That should take some of the [...]
Saving enough to pay for the future higher education of your children is a daunting task. Some consolation: There is no foolproof method, but at least a Section 529 plan may help you set aside funds, up to generous limits. Q. What exactly is a Section 529 plan? A. Named after the tax code section [...]
If you are an employer who sponsors a qualified retirement plan, we want to remind you about the requirement to restate your plan document. Many retirement plans that use plan documents preapproved by the Internal Revenue Service (IRS) must be restated periodically to reflect recent legislative and regulatory changes, in order to maintain their tax [...]
UPDATED March 22, 2022: Reminder that this must be implemented this financial reporting year i.e. it is effective for non-public companies (including not-for-profits) with fiscal years beginning after December 15, 2021 and interim periods within fiscal years beginning after December 15, 2022. The Financial Accounting Standards (FASB) announced in January 2016 that new Accounting [...]
The Tax Cuts and Jobs Act (TCJA) created a major new tax deduction for self-employed individuals and owners of pass-through entities like partnerships, S corporations and limited liability companies (LLCs). Effective for 2018 through 2025, the deduction for “qualified business income” (QBI) can be as high as 20%. However, these deductions are reduced or [...]
There are usually some new twists and turns to the current tax return rules for individuals, but this year is especially tricky due to recent legislation. Following are six potential items to watch out for on 2021 returns. 1 Charitable donations: Normally, you can deduct monetary contributions made to qualified charitable organizations only if you [...]
The tax threshold for deducting medical expenses is written in stone…finally. After several years in which the medical deduction threshold jumped back and forth between 7.5% of adjusted gross income (AGI) and 10% of AGI, Congress settled the issue once and for all in the Consolidated Appropriations Act (CAA). Effective as of 2021, the CAA [...]
Do you travel in your vehicle on behalf of a qualified charitable organization? In lieu of keeping track of your actual expenses, you may use a standard mileage rate of 14 cents per mile, plus related tolls and parking fees, to arrive at the deduction. Unlike the IRS-approved standard mileage rates for business reasons, job-related [...]