Section 179 depreciation election limits for 2023

Heads up: Under Sec. 179, your business may be able to currently deduct eligible property you’ve placed into service in 2023. This generally includes new and used machinery, equipment, off-the-shelf software, roofs, improvements to building interiors and HVAC, as well as fire, security and alarm systems. For 2023, you can expense a maximum of $1,160,000. […]

Court rulings highlights the importance of due dates

A new U.S. District Court ruling highlights the importance of following rules regarding IRS filing dates. A taxpayer who inherited the proceeds of a variable life insurance policy claimed that he and his wife were overtaxed in 2011 and requested a refund. In 2017, he submitted a payment for 2011 tax due that didn’t include […]

How To Get an IRA Tax Deduction: Rules, Eligibility and More

How To Get an IRA Tax Deduction: Rules, Eligibility and More – USA TODAY https://bit.ly/3Mnzsa3

401(k) limit increases to $23,000 for 2024, IRA limit rises to $7,000

401(k) limit increases to $23,000 for 2024, IRA limit rises to $7,000 … – IRS https://bit.ly/3u0Edjt

Common Sense Recommendations for the Application of Tax Law to Digital Assets

Developing guidance regarding the taxation of digital assets hasn’t been easy for the U.S. Senate Finance Committee. The committee sought comment from the public and a group of 30 tax law academics responded by compiling “common sense” answers in a recent report. The report makes two general points that are deemed “central to any coherent […]

IRS extends acceptance of digital signatures

The IRS announced it has extended the acceptance of digital signatures indefinitely “until more robust technical solutions are deployed.” In addition, the use of encrypted email when working directly with IRS personnel has been extended until Oct. 31, 2025. The IRS originally allowed taxpayers and CPAs to use digital signatures and encrypted email during the […]

Facing a future emergency? Two new tax provisions may soon provide relief

Perhaps you’ve been in this situation before: You have a financial emergency and need to get your hands on some cash. You consider taking money out of a traditional IRA or 401(k) account but if you’re under age 59½, such distributions are not only taxable but also are generally subject to a 10% penalty tax. […]

Does the IRS evaluate employees by how much they collect?

The IRS isn’t allowed to evaluate its enforcement employees by using any record of tax enforcement results (ROTERs) and certain other factors. In a recent audit, the Treasury Inspector General for Tax Administration (TIGTA) examined whether the IRS complied with the requirements. The IRS defines ROTERs as data, statistics, compilations of information, or other numerical […]

What is ordinary and necessary, when it comes to deductions?

Tax law generally allows deductions for ordinary and necessary business expenses incurred in carrying on a trade or business. However, an activity must be conducted with continuity and regularity and with the primary purpose of realizing income or profit. In one new case, the U.S. Tax Court found an individual didn’t conduct an activity in […]

The Social Security wage base for employees and self-employed people is increasing in 2024

The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $168,600 for 2024 (up from $160,200 for 2023). Wages and self-employment income above this threshold aren’t subject to Social Security tax. Basic details The Federal Insurance Contributions Act (FICA) imposes two taxes on employers, employees and self-employed […]