With the standard deduction for individuals at $12,550 and for married filing joint at 25,100 for 2021, many taxpayers are no longer itemizing. If you are over the age of 70 1/2, you are eligible to make a qualified charitable distribution. This is a direct transfer of funds from your…
Under the Tax Cuts and Jobs Act (TCJA), like kind exchanges are now only available for exchanges of real property such as buildings or land. Qualifying like kind exchanges of real property used for business or held for investment may allow you to defer taxable gain. Real properties are considered…
Are you self-employed and either you or your family were infected with COVID-19 or had to quarantine because of COVID-19? You don’t want to miss out on this credit. The Families First Coronavirus Response Act (FFCRA) included credits to help smaller businesses offer paid sick and family leave wages to…
While qualifying business meals remain 50% deductible for 2020, the Consolidated Appropriations Act of 2021 (CAA) has expanded the deductibility of business meals and beverages to 100% for those provided by a restaurant in 2021 and 2022. To be deductible, food and beverage expenses must meet all of the following…
Are you maximizing your earned income tax and child tax credits? The Consolidated Appropriations Act (CAA) of 2021 included a temporary change that could result in larger earned income tax credits and child tax credits. A tax credit is an amount that taxpayers can subtract, dollar for dollar, directly from…
Roughly nine out of every ten taxpayers take the standard deduction instead of itemizing. In an effort to encourage people to give to charitable organizations, the CARES Act now allows up to $300 charitable deduction for all cash donations made in 2020 regardless of whether or not the taxpayer itemizes. …
Make sure you relay the following information to your tax accountant for the upcoming 2020 tax season: On Dec 27th President Trump signed the Consolidated Appropriations Act, 2021 (CAA 2021) that included the PPP guidance for which we all were waiting. Forgiven PPP loans and EIDL grants are not taxable…
The Secure Act, which went into effect January 1, 2020, changed the rules on traditional IRA contributions and required minimum distributions (RMDs). The old rules disallowed traditional IRA contributions once you reached age 70 ½. The new rules allow traditional IRA contributions to be made at any age (as long…
The Secure Act, which went into effect January 1, 2020, eliminated stretch IRAs which allowed non-spousal beneficiaries to withdraw funds from inherited IRAs over their lifetimes. The new law requires inherited IRA funds to be withdrawn within 10 years. The good news is that there are exceptions to this rule. …
If you own a business or a rental that is not in an S corporation or corporation, a nice deduction you can get is hiring your child that is under the age of 18. The payments are not subject to social security or Medicare taxes plus they will reduce the…
