Feeling charitable?

If charitable giving is on your mind, consider a tax reduction strategy called “bunching.” Only donations to IRS-approved charities are deductible, and only if you itemize. However, itemizing is less common since the standard deduction nearly doubled (for 2018-2025, unless extended by Congress). Bunching may allow you to benefit from the standard and itemized deductions […]

SCOTUS declines to review bankruptcy case

The U.S. Supreme Court has declined to review a decision in which a taxpayer who filed for Chapter 7 bankruptcy sought to discharge his tax liabilities. According to the Bankruptcy Code, tax debts are dischargeable only if a debtor has filed a “return.” This taxpayer, however, didn’t file timely IRS returns for any of the […]

Now what? Assessing the likely tax impacts of the 2024 election

President-Elect Donald Trump will return to the White House in 2025 — a year that already was expected to see significant activity on the federal tax front. A projected unified GOP Congress is poised to help him notch early legislative tax victories. (Republicans have won back a majority in the U.S. Senate and are projected […]

IRS update

Tax collection is one of the many government functions likely to be affected by the upcoming Republican “trifecta” (control of the presidency, U.S. Senate and U.S. House). The Inflation Reduction Act secured nearly $80 billion for the IRS to increase compliance rates, upgrade technology and make new hires through 2031. But Republicans have repeatedly called […]

The nanny tax: What household employers need to know

Hiring household help, whether you employ a nanny, housekeeper or gardener, can significantly ease the burden of childcare and daily chores. However, as a household employer, it’s critical to understand your tax obligations, commonly called the “nanny tax.” If you hire a household employee who isn’t an independent contractor, you may be liable for federal […]

Reminder – BOI reporting is due by January 1st

Many companies created or registered to do business before Jan. 1, 2024, must e-file their initial beneficial ownership information (BOI) reports by Jan. 1, 2025. This generally means reporting the names and other information about those who own or control the company. Exceptions and special rules apply. The report is filed with the U.S. Treasury […]

Lame-duck Session may address some minor tax bills

Republicans are set to take control of both chambers of Congress next January. The consensus on Capitol Hill is that there’s little chance of major tax legislation being passed until then. However, there may be an opportunity during the rest of the lame-duck session to consider minor tax bills. According to Eric LoPresti, tax counsel […]

From flights to meals: A guide to business travel tax deductions

As a business owner, you may travel to visit customers, attend conferences, check on vendors and for other purposes. Understanding which travel expenses are tax deductible can significantly affect your bottom line. Properly managing travel costs can help ensure compliance and maximize your tax savings. Your tax home Eligible taxpayers can deduct the ordinary and […]

Charitable Giving

With the holiday season kicked off, many are turning their thoughts to making charitable donations. Suppose you own or are a beneficiary of an IRA and you’re at least 70½ years old. In that case, you can make qualified charitable distributions (QCDs) of up to $105,000 in tax-free charitable donations during 2024. That’s up from […]

RMDs due by December 31st

Taxpayers born before 1951 need to take required minimum distributions (RMDs) by Dec. 31, to avoid penalties. RMDs are the mandatory withdrawals from many retirement plans and IRAs, including SIMPLE IRAs and SEPs. Roth IRAs aren’t subject to RMDs during the owners’ lifetimes. RMDs are taxable income and can incur penalties if not withdrawn on […]