Are scholarships tax-free or taxable?

With the rising cost of college, many families are in search of scholarships to help pay the bills. If your child is awarded a scholarship, you may wonder about how it could affect your family’s taxes. Good news: Scholarships (and fellowships) are generally tax-free for students at elementary, middle and high schools, as well as […]

An Update on the ERC program

Recently, the IRS halted processing of claims for the Employee Retention Credit (ERC), due to a high volume of fraudulent claims. The moratorium is through at least the end of 2023. ERC claims that were already filed are now subject to longer processing, including heightened scrutiny to weed out fraud. The IRS is creating a […]

Timing bonuses for a tax deduction

Businesses planning to pay employees year-end bonuses can time their payments to reduce tax. For example, if your business operates on the cash basis, you must deduct bonuses in the year they’re paid. So you could pay bonuses either in late 2023 or early 2024, whichever makes the most tax sense. Accrual-basis businesses must pay […]

Business automobiles: How the tax depreciation rules work

Do you use an automobile in your trade or business? If so, you may question how depreciation tax deductions are determined. The rules are complicated, and special limitations that apply to vehicles classified as passenger autos (which include many pickups and SUVs) can result in it taking longer than expected to fully depreciate a vehicle. […]

EV tax credits

For many car buyers, new electric vehicles (EVs) are priced out of reach, even when tax credits are applied. But it still may be possible to buy an affordable EV and qualify for a credit. Previously owned EVs and fuel cell vehicles purchased from a licensed dealer on or after Jan. 1, 2023, for $25,000 […]

What is your marital status?

Major life changes can greatly affect your tax situation. This is especially true if you get married or divorced. If you experienced one of these events, be sure to address it with your tax advisor as part of your year-end tax planning. Indeed, your marital status for the entire year is determined as of Dec. […]

Shareholder advances: Debt or equity?

From time to time, owners of closely held businesses might need to advance their companies money to bridge a temporary downturn or provide funds for an expansion or another major purchase. How should those advances be classified under U.S. Generally Accepted Accounting Principles (GAAP)? Depending on the facts and circumstances of the transaction, an advance […]

Year-end tax planning season is here

Year-end tax planning season is here. The up-and-down financial markets this year may provide you the opportunity to harvest your losses. This tried-and-true tax strategy may be an option if you’ve realized adjusted net capital gains and are now facing a high tax bill as a result. To soften the tax blow, review your portfolio […]

IRS grants tax relief for most California residents and businesses

The IRS has granted most California residents and businesses extra time to file their 2022 taxes and pay any tax due. During the past year, 55 of California’s 58 counties have been declared federal disaster areas. Indeed, all counties except Lassen, Modoc and Shasta qualify for the tax filing relief. Affected taxpayers now have an […]

How much can businesses deduct per business mile driven?