IRS reminds taxpayers that gambling winnings are taxable

The football season has kicked off, and betting on college and NFL games is hotter than ever. Not to spoil the fun, but the IRS Criminal Investigation (IRS-CI) unit reminds taxpayers to gamble legally and report winnings on their tax returns even if they don’t receive a Form W-2G for gambling winnings. IRS-CI Chief Guy […]

Trump Tax proposal

Donald Trump, Republican presidential nominee, is promising workers he’ll eliminate tax on overtime wages if he’s elected. Overtime pay is defined as time-and-a-half paid for the time employees work over 40 hours in a single work week. Trump has also proposed to extend temporary tax cuts included in the Tax Cuts and Jobs Act (TCJA) […]

State Tax Ballot Measures to Watch in 2024 https://bit.ly/3zmTM84

Harris tax proposal

U.S. Democratic presidential nominee Kamala Harris recently announced that if elected, she’ll push for a higher tax deduction for new business costs. Currently, companies can deduct $5,000 in start-up costs, including expenses related to market research, advertising and salaries for employees who are being trained. To help encourage entrepreneurs, Harris says she’ll work to raise […]

Next year the reporting threshold for card payments resets to $600

IRS Form 1099-K, Payment Card and Third Party Network Transactions, is an information return that reports payments from payment apps or online marketplaces (also known as third-party settlement organizations). These include apps such as Paypal, Venmo and eBay. For 2024, the reporting threshold is $5,000. In 2025, the threshold is scheduled to be reduced to […]

Working remotely is convenient, but it may have tax consequences

Many employees began working remotely during the pandemic and continue doing so today. Remote work has many advantages for employers and employees, and as a result, it’s here to stay in many industries. But it may also lead to some tax surprises, especially if workers cross state lines. Double taxation may occur It’s not unusual […]

IRS waives penalties related to CAMT

The Inflation Reduction Act established a corporate alternative minimum tax (CAMT), which imposes a 15% minimum tax on the adjusted financial statement income (AFSI) of large corporations. The CAMT generally applies to large corporations with average annual AFSI exceeding $1 billion. Newly proposed regulations from the IRS provide definitions and general rules for determining and […]

Selling your residence?

The residential real estate market is surging in many areas. If you’re considering selling your principal home, keep in mind that you might owe taxes on the profit, especially if you’ve lived there a while. Here are two ways you may be able to reduce your taxable gain: 1) List the eligible costs when you […]

Cash or accrual accounting: What’s best for tax purposes?

Your businesses may have a choice between using the cash or accrual method of accounting for tax purposes. The cash method often provides significant tax benefits for those that qualify. However, some businesses may be better off using the accrual method. Therefore, you need to evaluate the tax accounting method for your business to ensure […]

Recieve a notice from the IRS?

Let’s say you receive an IRS collection notice. What should you do? Don’t panic, but don’t ignore the letter. The National Taxpayer Advocate warns that ignoring the notice can make the situation worse and more expensive. First, confirm the accuracy of the notice using an online account at https://bit.ly/4en0t8W. This will allow you to see […]