Do you qualify for a clean vehicle tax credit?

The IRS has updated the rules to qualify for a clean vehicle (CV) tax credit. Before you buy, be sure the vehicle was made by a qualified manufacturer and meets other conditions. Manufacturers must have an approved agreement with the IRS whereby they supply valid vehicle ID numbers of qualifying vehicles, which can be matched […]

Estimate payments due

Mark your calendars for this important date, Sept. 15, if you must make quarterly estimated tax payments. That’s the due date for the third estimated tax payment for 2023. Who must pay estimated tax? Generally, those who have taxable income that isn’t subject to withholding must make payments if they expect to owe tax of […]

IRS issues guidance on new retirement catch-up contribution rules

In December 2022, President Biden signed the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act. Among other things, the sweeping new law made some significant changes to so-called catch-up contributions, with implications for both employers and employees. With the new catch-up provisions scheduled to kick in after 2023, many retirement plan sponsors have been struggling […]

Enhanced Tax credits can be claimed by certain clean energy companies

As part of the Inflation Reduction Act (IRA), clean energy companies that satisfy certain prevailing wage and registered apprenticeship (PWA) requirements can claim enhanced tax credits and deductions. The IRS and U.S. Treasury Dept. have announced proposed guidance to help qualified businesses claim the tax benefits, including taxpayers that initially failed to satisfy the PWA […]

Florida Tax relief granted

The IRS is granting tax relief to Florida taxpayers affected by Hurricane Idalia. After President Biden declared 46 Florida counties disaster areas, the IRS extended filing and payment deadlines for impacted individuals and businesses. For deadlines on or after Aug. 27, 2023, and before Feb. 15, 2024, taxpayers must now file or pay by Feb. […]

Plan now for year-end gifts with the gift tax annual exclusion

Now that Labor Day has passed, the holidays are just around the corner. Many people may want to make gifts of cash or stock to their loved ones. By properly using the annual exclusion, gifts to family members and loved ones can reduce the size of your taxable estate, within generous limits, without triggering any […]

Cash payment transaction reporting goes electronic

Businesses that receive more than $10,000 in cash must report the transactions to the IRS. This is done on Form 8300, Report of Cash Payments Over $10,000. Although many cash transactions are legitimate, information reported on Form 8300 can help combat those who evade tax, profit from the drug trade or engage in terrorist financing. […]

State relief payments can be excluded

Earlier this year, the IRS provided clarification on the federal tax status of special payments made by 21 states in 2022 that were mainly related to the pandemic. In a nutshell, qualified taxpayers in these 21 states aren’t required to include in income their state or local relief payments because the payments were made for […]

Update on depreciating business assets

The Tax Cuts and Jobs Act liberalized the rules for depreciating business assets. However, the amounts change every year due to inflation adjustments. And due to high inflation, the adjustments for 2023 were big. Here are the numbers that small business owners need to know. Section 179 deductions For qualifying assets placed in service in […]

Debt forgiveness may cause taxation

Debt forgiveness may result in taxes owed. Under federal tax law, gross income generally includes cancellation of debt (COD) income when a lender forgives all or part of a debt. One taxpayer was the sole member of a limited liability company (LLC) that defaulted on a bank line of credit. The bank filed a Form […]