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 [...]
Do you pay someone to watch your young kids while you (and your spouse, if you are married) work during the day? You may be entitled to a dependent care credit that can offset your personal tax bill on a dollar-for-dollar basis. Even better: Thanks to the new American Rescue Plan Act (ARPA), the [...]
If you are starting up a new business venture as the pandemic abates, or buying an existing business, you may have to answer this question: When is the operation officially opening for business? This may be significant from a tax perspective. Reason: While “ordinary and necessary” business expenses are generally deductible, start-up expenses must be [...]
Housing prices have been skyrocketing in many parts of the country. If you buy a home, at least you may qualify for generous mortgage interest deductions, as can many existing homeowners. Despite revised rules imposed by the Tax Cuts and Jobs Act (TCJA) for 2018 through 2025, you can generally continue to write off most, [...]
The U.S. Department of Agriculture (USDA) is providing up to $200 million to provide relief to timber harvesting and timber hauling businesses that have experienced losses due to COVID-19 as part of USDA’s Pandemic Assistance for Producers initiative. Loggers and truckers can apply for assistance through USDA’s Farm Service Agency (FSA) July 22 through Oct. 15, [...]
This spring, two Senate proposals were introduced that contain significant changes to federal estate, gift, generation-skipping transfer (GST) taxes, and, the concept of "stepped-up basis" for inherited and gifted wealth. It should be emphasized here that these are just proposals and it is unknown what, if any, of these acts will become law. The two [...]
Like many Americans who have child dependents on your tax return, you may have recently received a letter from the IRS regarding advance payments of the Child Tax Credit. If you are wondering how this will affect you, we have compiled some FAQs below that will hopefully answer the questions you may have. What has [...]
By: Kim Smith, CPA, Tax Shareholder Kim is a shareholder, a member of the JMF Tax Department and in charge of the JMF State and Local Tax (SALT) group. With over 20 years of experience, she assists clients with corporate, partnership, and individual income tax reporting as well as complex multi-state income and sales tax issues. On [...]
Are you planning to give gifts to family members in 2021? As long as the gifts do not exceed the limits for the annual gift tax exclusion, you have no federal gift tax worries. Generally, you do not even have to file a gift tax return. However, there are times when you DO have to [...]