Deductible medical Expenses?

If you’ve incurred medical expenses this year, you may qualify for a tax deduction. Taxpayers can deduct the amount of unreimbursed medical expenses that exceeds 7.5% of their adjusted gross income. To qualify for the deduction, the expenses must be paid specifically for medical or dental services, prescription drugs, insulin, medical equipment and supplies, medical […]

Consider borrowing from your corporation but structure the deal carefully

If you own a closely held corporation, you can borrow funds from your business at rates that are lower than those charged by a bank. But it’s important to avoid certain risks and charge an adequate interest rate. Basics of this strategy Interest rates have increased over the last couple years. As a result, shareholders […]

The Self Employment Tax Credit

You’ve probably never heard of the “Self Employment Tax Credit.” That’s because it doesn’t exist! However, unscrupulous promoters on social media are peddling the nonexistent credit as a way for self-employed people and gig workers to receive big payments related to the COVID-19 pandemic. In reality, the underlying limited and technical credits referenced in these […]

Ransomware attack on car dealers

Recently, there was a ransomware attack aimed at car dealers. As a result, the IRS is warning individuals and businesses selling cars about evolving phishing and smishing scams. Scammers relentlessly pursue the sensitive financial and personal data of individuals, which they may use to steal identities or assets or install malicious software on victims’ computers. […]

Auditing warehouse operations

When you hear the word “audit,” you might automatically associate it with financial reporting or the IRS. But auditing warehouse operations might also be beneficial for some businesses, such as manufacturers, distributors and retailers. Awkward or repetitive movements by employees, oversized packages and disorganized layouts can slow down productivity and even lead to medical and […]

Should i convert to a Roth IRA?

If you expect the tax rates you pay to rise, you may be able to proactively avoid higher taxes on retirement funds by converting a traditional IRA to a Roth account. This may be a smart tax move but be aware that there’s a current cost. That is, a conversion is treated as a taxable […]

It’s easy to get tripped up by the IRS’s passive activity loss rules

No plans to extend BOI reporting deadline

Recently, several members of the U.S. House Financial Services Committee claimed that many small business owners weren’t aware of the Beneficial Ownership Information (BOI) reporting deadline. They are, according to these members, vulnerable to noncompliance penalties. However, U.S. Treasury Secretary Janet Yellen responded that there are no plans to extend the regulation’s compliance deadline. This means […]

Fact sheet released on clean fuel production credit

The IRS has released a new fact sheet (https://bit.ly/3XUv7BN ) to help businesses that produce clean transportation fuel apply for registration for the clean fuel production credit. The fact sheet clarifies such issues as which entities must apply for registration and what actions disregarded entities should take. This credit (under Code Sec. 45Z) was made […]

SECURE 2.0: Which provisions went into effect in 2024?

The Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act was signed into law in December 2022, bringing more than 90 changes to retirement plan and tax laws. Many of its provisions are little known and were written to roll out over several years rather than immediately taking effect. Here are several important changes that […]