Adopting a child is expensive. Fortunately, there may be tax breaks to help adoptive parents offset some of the costs. In 2024, a credit of up to $16,810 is available for qualified expenses, with phaseouts for higher-income parents. In 2025, the credit will rise to $17,280. The credit is nonrefundable, which means it’s limited to […]
Read More Tax breaks may be available for adoption of childrenRecently, a California-based medical cannabis dispensary was denied federal tax deductions for business expenses and charitable contributions. Even though the dispensary is licensed in California and its trade is legal under California law, “trafficking marijuana” is illegal under federal law. In denying the deductions, the U.S. Tax Court referenced IRC Sec. 280E, which prohibits deductions […]
Read More Cannabis remains a scheduled drug not allowing tax deductionsIn recent years, the accounting rules have undergone significant changes, including updated standards for reporting revenue, leases and credit losses. While business owners and managers often express frustration over the complexity of these rules, they’re more than an exercise in compliance. They help promote investor confidence and efficient capital markets. Here’s an overview of why […]
Read More The evolution of financial reportingEmployers and employees, take note: The IRS has released 2025 inflation-adjusted limits for employee health benefits. Workers who defer earnings to health flexible spending arrangements can contribute as much as $3,300 in 2025 (up from $3,200 in 2024). And for plans that allow carryover of unused amounts, the 2025 carryover maximum will be $660 (up […]
Read More Employee health benefit limits updated for 2025The premium tax credit (PTC) helps eligible individuals cover their premiums for health insurance purchased through the Health Insurance Marketplace. It was “enhanced” for the 2021 and 2022 tax years to allow taxpayers with incomes over 400% of the federal poverty line to claim a portion of the credit. The Inflation Reduction Act extended the […]
Read More The Premium Tax CreditThe IRS has announced inflation adjustments for 2025. The 2025 standard deduction for single taxpayers and married individuals filing separately will be $15,000, an increase of $400 from 2024. For married joint filers, it will be $30,000, an increase of $800 from 2024. For heads of households, the standard deduction will be $22,500, an increase […]
Read More 2025 Inflation adjustments announcedPotential estate tax relief for family businesses
Read More Potential estate tax relief for family businessesBusiness owners can generally deduct ordinary and necessary business expenses if they have proof. But one married couple that owned six LLCs claimed they had too much proof to present in court. After they failed to file tax returns for several years, the IRS created substitute returns. In U.S. Tax Court, the taxpayers relied mostly […]
Read More Couple claims they have too much proof to present in courtTaxpayers who give the IRS Whistleblower Office (WBO) credible, specific tips about unpaid taxes may qualify for cash awards. Several conditions must be met, including: The IRS must take action based on a tip provided. Also, proceeds must be derived by the WBO based on the action taken. One tipster alleged that a tax-exempt entertainment […]
Read More No award given in recent whistleblower caseThere’s still time to reduce your 2024 tax bill with these strategies – CNBC https://bit.ly/3AihVgw
Read More There’s still time to reduce your 2024 tax bill with these strategies
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