IRS challenges related party rental deduction

The IRS challenged a group of individuals who rented their homes to an S corporation (owned by them) for meetings and deducted the rental expenses. The IRS stated that the taxpayers hadn’t substantiated all of the meetings and didn’t present written documentation. But the U.S. Tax Court sided with the taxpayers, at least in part. […]

Guaranteeing a loan to your corporation? There may be tax implications

Let’s say you decide to, or are asked to, guarantee a loan to your corporation. Before agreeing to act as a guarantor, endorser or indemnitor of a debt obligation of your closely held corporation, be aware of the possible tax implications. If your corporation defaults on the loan and you’re required to pay principal or […]

Energy credits in the Inflation Reduction Act

The Inflation Reduction Act (IRA) established an energy investment credit program that incentivizes companies to build solar or wind energy facilities in low-income communities. The IRS has issued final regs and guidance (Revenue Procedure 2023-27) that provide definitions and requirements for the program. An increase in the credit for solar and wind facilities that receive […]

Overhead allocations: Rising costs require a fresh, disciplined mindset

From utilities and interest expense to executive salaries and insurance, many overhead costs have skyrocketed over the last few years. Some companies have responded by passing along the increases to customers through higher prices of goods and services. Is this strategy right for your business? Before implementing price increases, it’s important to understand how to […]

Application to be tax-exempt is a process

Organizations that are considering applying for tax-exempt status should understand that it’s a process. For starters, according to the IRS, the organization must be operated exclusively for charitable, religious, educational, scientific or other similar purposes. Organizations applying for recognition of tax-exempt status under IRC Section 501(c)(3) must complete and file a Form 1023-series application. Some […]

When can you deduct business debt from income tax?

At 30%, Solar Panel Tax Credits Are at a High Point for Now

At 30%, Solar Panel Tax Credits Are at a High Point for Now – The New York Times https://bit.ly/47NGZrx

Do you owe the IRS but haven’t received a notice lately?

If an individual owes back taxes and thinks the IRS has forgotten about it, he or she should think again. Taxpayers with balances due may not have received collection notices for the last 18 months, National Taxpayer Advocate, Erin Collins said recently. Some processes, such as the sending of notices were put on hold due […]

CBO releases budget review

The Congressional Budget Office (CBO) has released its budget review for the first 10 months of fiscal year 2023. The federal budget deficit was $1.6 trillion, “more than twice the shortfall” for the same period in 2022. This is the result of a 10% drop in revenues, possibly due to smaller capital gains taxes. An […]

Biden Administration Unveils New Crypto Tax Reporting Rules

Biden Administration Unveils New Crypto Tax Reporting Rules – U.S. News & World Report https://bit.ly/3KVJQFe