The 2024 Foreign earned income exclusion

One of the amounts the IRS recently adjusted for inflation is the foreign earned income exclusion amount. This is the amount U.S. citizens or resident aliens who live in foreign countries for at least one uninterrupted tax year can exclude from their foreign earned income. Citizens and resident aliens taxed by the United States on […]

11 Exceptions to the 10% penalty tax on early IRA withdrawals

If you’re facing a serious cash shortfall, one possible solution is to take an early withdrawal from your traditional IRA. That means one before you’ve reached age 59½. For this purpose, traditional IRAs include simplified employee pension (SEP-IRA) and SIMPLE-IRA accounts. Here’s what you need to know about the tax implications, including when the 10% […]

How to keep Thanksgiving under budget — despite rising prices

A cost segregation study may cut taxes and boost cash flow

Is your business depreciating over 30 years the entire cost of constructing the building that houses your enterprise? If so, you should consider a cost segregation study. It may allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow. Depreciation basics Business buildings generally have a 39-year depreciation period […]

Small Business accelerated depreciation election

Under Section 179 of the Internal Revenue Code, companies can “expense” the full cost of qualifying fixed assets to reduce their taxable income. This means they can deduct the purchase amount currently rather than having to depreciate the asset over many years. Both new and used fixed assets can qualify. The election is available for […]

Are you ready for year-end inventory counts?

As year end approaches, it’s time for some calendar-year businesses to perform physical inventory counts. This activity is more than a time-consuming chore; it’s an opportunity to improve your company’s operational efficiency. Here are some best practices as you prepare to count your inventory, as well as guidance on how to get more from these […]

IRS announces 2024 inflation adjustments

Among the 2024 inflation adjustments just announced by the IRS are several that affect higher-income taxpayers, including changes to the Alternative Minimum Tax (AMT). The AMT exemption amount is increasing to $85,700 in 2024 for single individuals and begins to phase out at $609,350. The AMT exemption for married joint filers will be $133,300 and […]

Debate over funding continues

Emergency aid to Israel, recently passed in the U.S. House, is now the subject of contentious debate in the U.S. Senate. At issue is the source of funding. Republicans propose to rescind $14.3 billion of the $80 billion (over 10 years) appropriated to the IRS to beef up tax enforcement and make customer service and […]

Withdrawing from an IRA before age 59½ without penalty

Tax planning when NOLs are present

In recent years, the net operating loss (NOL) deduction for businesses has seen several important changes. Since 2021, NOLs can’t be carried back, but unused losses can be carried forward indefinitely (with some exceptions for farm businesses). However, they’re now subject to an 80% of taxpayer income limitation. The 80% standard extends to NOLs generated […]