Effort to eliminate SALT limit introduced (again…)

The Tax Cuts and Jobs Act capped the state and local tax (SALT) deduction at $10,000 for tax years 2018 to 2025. The result has been a tax increase for many taxpayers. (Previously, there was no cap on the SALT deduction.) Efforts to eliminate the cap are gaining support from a growing number of lawmakers. […]

There’s a favorable “stepped-up basis” if you inherit property

A common question for people planning their estates or inheriting property is: For tax purposes, what’s the “cost” (or “basis”) an individual gets in property that he or she inherits from another? This is an important area and is too often overlooked when families start to put their affairs in order. Under the fair market […]

IRS Tax season update

U.S. Treasury and IRS officials say that early efforts to deploy funds provided by the Inflation Reduction Act have led to a much smoother tax filing season this year. These efforts include expanding electronic filing tools and implementing paper return scanning. IRS Commissioner Danny Werfel reports that the agency is “fully caught up” with tax […]

Who receives an automatic extension?

Certain taxpayers receive an automatic extension to file their tax returns. Most taxpayers must formally request a filing extension (this year to Oct. 16, 2023) on Form 4868 and pay any tax due on April 18, 2023. However, U.S. citizens and resident aliens who live and work outside the U.S. and Puerto Rico receive an […]

Spring cleaning in QuickBooks

Have your company’s accounting records become cluttered with duplicate items and unused accounts? When you need to revise your QuickBooks® lists — such as the chart of accounts, customers and vendors — the software provides methods for deleting, inactivating and merging list entries. Here’s what you can do to help spruce things up. Deleting QuickBooks […]

IRS proposes Clean Vehicle Credit limits

The Inflation Reduction Act (IRA) extended and expanded the Section 30D Clean Vehicle (CV) Credit. However, recently proposed IRS regulations effectively limit the number of CVs eligible for the credit due to strict sourcing requirements. The proposed regs apply to CVs that buyers take delivery of on or after April 18, 2023. The CV Credit […]

Owe the IRS more in tax than expected? These are the next steps for business owners

Owe the IRS more in tax than expected? These are the next steps for business owners – CNBC https://bit.ly/3UWUoI0

M&A market: Looking back, looking forward

What is a substitute return?

If an individual has taxable income but doesn’t file a return, the IRS can prepare one under its “Substitute for Return” program. In one case, a man received $55,738 in retirement payments and $40 in interest one year but didn’t file a return or pay tax. The IRS prepared a return and informed him that […]

Live outside the US, then file by June 15

The IRS is reminding U.S. citizens and resident aliens that worldwide income (including wages, unearned income and tips) is subject to U.S. income tax, regardless of where taxpayers live or earn income. If you live outside the U.S. or Puerto Rico, you have an automatic two-month filing extension to June 15, 2023. But even with […]