2022 foreign housing exclusion issued

The IRS issues the 2022 foreign housing cost exclusions. A U.S. citizen or U.S. resident alien living abroad can elect to exclude the foreign earned income and housing cost amount from gross income (subject to limitations). The housing cost exclusion is calculated based on the number of days physically present in the foreign location. In […]

Numerous tax limits affecting businesses have increased for 2022

Many tax limits that affect businesses are annually indexed for inflation, and a number of them have increased for 2022. Here’s a rundown of those that may be important to you and your business. Social Security tax The amount of an employee’s earnings that is subject to Social Security tax is capped for 2022 at […]

Time to replace old software?

How will revised tax limits affect your 2022 taxes?

While Congress didn’t pass the Build Back Better Act in 2021, there are still tax changes that may affect your tax situation for this year. That’s because some tax figures are adjusted annually for inflation. If you’re like most people, you’re probably more concerned about your 2021 tax bill right now than you are […]

Budget Deficit

The federal budget deficit hits slower growth. The Congressional Budget Office (CBO) reports that the deficit for the first five months of fiscal year 2022 was $475 billion. That’s lower than for the same period in the two previous fiscal years. Revenues rose by 26% and outlays fell 8%. Individual income and payroll taxes combined […]

Ukraine in the News

Congress seeks to ramp up pressure on Russia for attacks on Ukraine. U.S. Senate Finance Committee Chair Ron Wyden (D-OR) wants to abolish tax breaks for wealthy Russians supporting Russian President Vladimir Putin. This would be on top of economic sanctions already imposed. Provisions being discussed include denying foreign tax credits and deductions for taxes […]

Defer tax with a like-kind exchange

Do you want to sell commercial or investment real estate that has appreciated significantly? One way to defer a tax bill on the gain is with a Section 1031 “like-kind” exchange where you exchange the property rather than sell it. With real estate prices up in some markets (and higher resulting tax bills), the like-kind […]

Football Stadium subsidies

Is the NFL fleecing taxpayers? Yes, according to three U.S. House Democrats, who recently introduced legislation to eliminate tax-exempt status for bonds used to construct new stadiums. According to a press release, “Since 2000, subsidies for financing professional sports stadiums have cost taxpayers $4.3 billion despite the billions of dollars in profits” reaped by team […]

Bill Signed

On March 11, President Biden signed a $1.5 trillion omnibus spending bill into law. The headline is that the bill includes $13.6 billion in aid for Ukraine. But it also keeps the U.S. government funded through September 30, increases defense spending by $42 billion and boosts the IRS’s budget by $12.6 billion or 6%. That […]

Business Tax Climate

From the Tax Foundation: Ranking Individual Income Taxes on the 2022 State Business Tax Climate Index https://bit.ly/3MYG0KG