The Child Care for American Families Act introduced

The U.S. House of Representatives has introduced a bipartisan bill that would increase the amount of the Section 45F tax credit a business can claim for investing in eligible childcare services for its employees. Dubbed the “Child Care for American Families Act,” the bill places special emphasis on small businesses and those located in low-income […]

Federal regulators expand overtime pay requirements, ban most noncompete agreements

The U.S. Department of Labor (DOL) has issued a new final rule regarding the salary threshold for determining whether employees are exempt from federal overtime pay requirements. The threshold is slated to jump 65% from its current level by 2025 and is expected to make four million additional workers eligible for overtime pay. On the same […]

Business deductions of Net Operating Losses

Generally, business taxpayers can deduct a net operating loss (NOL) from income when filing a tax return, but they bear the burden of showing an NOL is valid. Tax law defines an NOL as the excess of deductions over gross income. One couple was denied an NOL deduction on their joint return. Reasons for the […]

Using an IRA for college expenses

As any parent with a child in college knows, higher education is expensive. If you’re paying college costs for yourself or certain other people and money is tight, you might consider tapping your traditional IRA. Generally, if you’re under age 59½, tax law imposes a 10% “early withdrawal” penalty tax, unless an exception applies. One […]

A three-step strategy to save tax when selling appreciated vacant land

Let’s say you own one or more vacant lots. The property has appreciated greatly and you’re ready to sell. Or maybe you have a parcel of appreciated land that you want to subdivide into lots, develop them and sell them off for a big profit. Either way, you’ll incur a tax bill. For purposes of […]

Be careful when dealing with NFTs

Recently, the U.S. Treasury Department released a risk assessment report about nonfungible tokens (NFTs). It warns that NFTs are “highly susceptible” to use in fraud and money laundering schemes. Risk rises for NFT platforms and buyers when cybersecurity and antifraud controls aren’t adequate. Confusing copyright and trademark laws, as well as hype and fluctuating pricing […]

Is your home a money pit?

There’s a reason some homeowners refer to their residences as “money pits.” Owning and maintaining a home can be expensive. So it’s important to keep in mind the tax breaks available to homeowners, starting with the mortgage interest deduction. If you itemize deductions, you generally can deduct interest on up to $750,000 in mortgage debt […]

Tax tips when buying the assets of a business

After experiencing a downturn in 2023, merger and acquisition activity in several sectors is rebounding in 2024. If you’re buying a business, you want the best results possible after taxes. You can potentially structure the purchase in two ways: Buy the assets of the business, or Buy the seller’s entity ownership interest if the target […]

Guidance issued for clean electricity production credit

The IRS has released proposed regulations that provide guidance for determining and claiming the clean electricity production credit (Section 45Y) and the clean electricity investment credit (Section 48E). The Inflation Reduction Act established the two clean energy credits. Taxpayers may be eligible for a credit on electricity produced from a qualified clean electricity facility or […]

Universal Savings Accounts idea gaining traction

As Congress debates extending provisions of the Tax Cuts and Jobs Act, one concept that’s gaining traction is the use of Universal Savings Accounts (USAs). Speaking before the Senate Finance Committee, Veronique de Rugy, a senior research fellow at George Mason University, said if enacted, “[USAs] will allow workers to save in one simple account […]