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 ยฝ. 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 The new law requires inherited IRA funds to be withdrawn within 10 years.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…
The Consolidated Appropriations Act of 2020, which was signed into law December 20, 2019, included a wide range of tax provisions and extenders.ย The Act extended many tax provisions retroactively to January 1, 2018 and are effective through December 31, 2020.ย The following extended tax breaks could impact your individual…
Qualified Charitable Deduction Due to the Tax Cuts and Jobs Act of 2017 increasing the standard deduction for individuals to $12,000 and 24,000 for married filing joint many taxpayers will not be itemizing going forward.ย If you are over the age of 70 ยฝ and required to take…
Depreciation The Tax Cuts and Jobs Act of 2017 improved the amount of depreciation businesses will be allowed in the year assets are purchased.ย The section 179 limit is increased to $1,000,000 and bonus depreciation has been increased to 100%.These changes will allow a business to be…
The Tax Cuts and Jobs Act of 2017 has lowered the corporate tax rate to 21%.ย What does this mean to you?ย Well, if you own a C Corporation, you can now benefit from this flat tax, which is 40% lower than the prior tax rate of 35%.ย …
The Tax Cuts and Jobs Act of 2017 has introduced the new 199A deduction.ย This is a 20% deduction of business income including sole proprietors, partnerships and S Corporations.ย There are multiple thresholds and income limits, but with proper planning this deduction is available for most business owners.ย …
