Planning your estate? Don’t overlook income taxes

The current estate tax exemption amount ($13.61 million in 2024) has led many people to feel they no longer need to be concerned about federal estate tax. Before 2011, a much smaller exemption resulted in many people with more modest estates attempting to avoid it. But since many estates won’t currently be subject to estate […]

EVs without tax credits?

Would Americans buy electric vehicles (EVs) even if EV tax credits weren’t available to offset the cost? That’s the question the U.S. Senate Budget Committee recently considered. Although demand for EVs is growing, U.S. automakers lag behind Chinese manufacturers, which receive subsidies from their government. Some witnesses testifying before the committee stressed the need for […]

Privacy is in the IRS taxpayer Bill of Rights

The IRS is reminding Americans that the right to privacy is included in its Taxpayer Bill of Rights. This means that any investigation will be “no more intrusive than necessary.” For example, the IRS states on its website that if it doesn’t suspect you’re hiding income, it generally won’t ask questions about your spending and […]

If your business has co-owners, you probably need a buy-sell agreement

Are you buying a business that will have one or more co-owners? Or do you already own one fitting that description? If so, consider installing a buy-sell agreement. A well-drafted agreement can do these valuable things: Transform your business ownership interest into a more liquid asset, Prevent unwanted ownership changes, and Avoid hassles with the […]

A Coke and a frown?

In a U.S. Tax Court case, The Coca-Cola Company agreed to pay the IRS approximately $6 billion in taxes and interest. However, the beverage company announced it will appeal the decision to the 11th Circuit. “Coca-Cola strongly believes the IRS and the Tax Court misinterpreted and misapplied the applicable regulations involved in the case and […]

Storm Season is a good time to review disaster relief options

With hurricane and tropical storm season here, it’s a good time to review possible tax relief for victims. The IRS offers several types of tax relief for individuals and businesses affected by hurricanes or other federally declared disasters. For example, victims often get extensions to file tax returns and pay taxes. They may also be […]

College expense may generate a tax credit

Students will soon be heading off to college or trade school. Higher education is expensive, but taxpayers who take post-high school coursework in 2024 (or who have dependents taking such courses) may qualify for one of two tax credits that can reduce their tax bills. The Lifetime Learning Credit tops out at $2,000 per tax […]

Do you have a required minimum distribution from your IRA?

With the year more than half over, now’s the time to consider ways to lower your 2024 tax bill. If you own or are a beneficiary of an IRA and you’re at least 70½, here’s one option: Make donations of up to $100,000 to IRS-approved charities directly from your IRA (or $200,000 for a married […]

What are AUP engagements — and does your business need one?

In certain circumstances, businesses may need to hire CPAs to perform agreed-upon procedures (AUPs) instead of (or in addition to) a review or an audit. AUPs are a type of attestation engagement “in which a practitioner performs specific procedures on subject matter and reports the findings without providing an opinion or conclusion,” according to the […]

Bill to fix research credit and add Child Credit fails

A bill that would have expanded the Child Tax Credit and increased business research tax breaks failed to pass the U.S. Senate on Aug. 1, 2024. The vote was 48-44, with only three Republican senators voting in favor. The bill, which also provided tax relief to disaster victims, passed the U.S. House overwhelmingly in January. […]