Required Minumum Distribution from IRA

Time’s nearly up for some retirees to take a required minimum distribution (RMD) from certain retirement accounts, to avoid harsh penalties. For those who turned 72 in the last half of 2021, your first year RMD must be taken by April 1, 2022, so act fast. This applies to those with IRAs, 401(k)s and similar […]

42 Tables comparing Facts & Figures 2022: How Does Your State Compare?

From the Tax Foundation: 42 Tables comparing Facts & Figures 2022: How Does Your State Compare? https://bit.ly/3qQ09cx 

IRS Backlog

It’s no secret that the IRS has had a huge backlog of unprocessed returns, a problem made worse by COVID-19. A recent audit by the Treasury Inspector General for Tax Administration (TIGTA) found there were 7.8 million cases in accounts management inventory as of Nov. 21, 2021, with 56.8% being over-aged. To improve service, TIGTA […]

Senate votes to Proceed

On March 23, the U.S. Senate voted to proceed with the America COMPETES Act of 2022, which the U.S. House of Representatives already passed. The proposed legislation provides grants for chipmakers and research. The semiconductor industry is pushing for a 25% investment tax credit to be added to the $50 billion bill that’s intended to […]

Taking the opposite approach: Ways your business can accelerate taxable income and defer deductions

Typically, businesses want to delay recognition of taxable income into future years and accelerate deductions into the current year. But when is it prudent to do the opposite? And why would you want to? One reason might be tax law changes that raise tax rates. There have been discussions in Washington about raising the corporate federal […]

Crypto Reporting

Cryptocurrency and nonfungible tokens (NFTs) are far from interchangeable from a tax perspective. A lack of IRS guidance has left tax experts to speculate on the nuances of how various digital assets may be treated. NFTs are cryptographic tokens that exist on a blockchain. They can represent real world items, such as real estate or […]

Bill to Increase Retirement Savings Opportunities

The Securing a Strong Retirement Act, a bipartisan bill intended to increase retirement savings and simplify retirement plan rules, is set to receive a full vote by the U.S. House of Representatives the week of March 28. It’s often referred to as SECURE 2.0, which references the 2019 SECURE Act that made numerous retirement plan […]

The tax rules of renting out a vacation property

Summer is just around the corner. If you’re fortunate enough to own a vacation home, you may wonder about the tax consequences of renting it out for part of the year. The tax treatment depends on how many days it’s rented and your level of personal use. Personal use includes vacation use by your relatives […]

Reporting Threshold Decreased

A law passed last year lowered the reporting threshold for gig workers and others who receive certain types of payments from $20,000 to $600. According to taxpayer groups and lawmakers, that change has harmed both taxpayers and the IRS. The reduced threshold may result in a deluge of Forms 1099-K from confused online sellers being […]

Crowdfunding

Using websites such as GoFundMe or Kickstarter is an easy way to raise money over the internet from a large group of people. Often referred to as “crowdfunding,” it may be used to fund business ideas, help families pay medical bills or raise money for charity. Bear in mind that the income raised by crowdfunding […]