Secure 2.0 makes changes for student loan debt payments

Employees paying student loan debt may benefit significantly from a provision of the new SECURE 2.0 law. Beginning after 2023, employers will be allowed to make matching contributions to 401(k) accounts (and certain other retirement plans) with respect to “qualified student loan payments.” This is true even for taxpayers who aren’t contributing to their own […]

FAQs about QuickBooks

Almost 40 years after its launch, QuickBooks® remains the leading accounting software program for small and medium-sized businesses. If you decide to use QuickBooks for your bookkeeping needs, you may have questions about implementation and using it to run your operations. Here are answers to some basic frequently asked questions (FAQs) to help you get […]

Do you qualify for a clean vehicle tax credit?

Are you hoping to qualify for a clean vehicle tax credit? If so, there’s a new list of potentially eligible plug-in electric or fuel cell vehicles purchased after 2022. Manufacturers include Audi, Ford, Nissan, Rivian, Stellantis (Chrysler and Jeep), Tesla, Volkswagen and Volvo. Vehicles on the list don’t automatically qualify for the credit. They must […]

Secure 2.0 add new penalty exception for retirement withdrawals

SECURE 2.0 adds a new exception for taking penalty-free withdrawals from retirement accounts. The tax code imposes a 10% penalty on the taxable amount of withdrawals from accounts such as 401(k) plans and IRAs received before age 59½. There are several exceptions to the penalty. The new law adds an exception for distributions used for […]

How to minimize the S corporation LIFO recapture tax

If you’re considering converting your C corporation to an S corporation, be aware that there may be tax implications if you’ve been using the last in, first out (LIFO) inventory method. That’s because of the LIFO recapture income that will be triggered by converting to S corporation status. We can meet to compute what the […]

Secure 2.0 makes changes to ABLE accounts

The new SECURE 2.0 law makes a favorable change to Achieving a Better Life Experience (ABLE) accounts, although it doesn’t kick in for a few years. Tax-exempt ABLE programs are established by states to help individuals with disabilities. Before the new law, in order to be the beneficiary of an ABLE account, an individual’s disability […]

Renting to a relative? Watch out for tax traps

If you own a home and rent it to a relative, you may be surprised to find out there could be tax consequences. Quick rundown of the rules Renting out a home or apartment that you own may result in a tax loss for you, even if the rental income is more than your operating […]

IRS issues 2023 Mileage Rates

The IRS has issued the 2023 optional cents-per-mile rates used to calculate the tax deductible costs of operating a vehicle. Effective Jan. 1, 2023, the standard mileage rate for the business use of a car (including vans, pickups, and panel trucks) is 65.5 cents per mile. (This is up from 58.5 cents per mile for […]

Key tax and retirement provisions in the Secure 2.0 Act

Key tax and retirement provisions in the Secure 2.0 Act – Journal of Accountancy https://bit.ly/3GEWGWA

Secure 2.0 increases Small Business credit for retirement plan

SECURE 2.0 builds on the provisions of the original SECURE Act by addressing a wide array of areas that make major changes to retirement planning. To incentivize small businesses to establish retirement plans, the new law creates or enhances some tax credits. For example, it increases the startup credit from 50% to 100% of administrative […]