You may qualify for an adoption tax credit

Adopting a child can be expensive. Fortunately, there may be tax benefits to help adoptive parents defray some of the costs. For 2023, a credit of up to $15,950 ($16,810 for 2024) is available for qualified expenses, with phaseouts for higher-income parents. The credit is nonrefundable, which means it’s limited to your tax liability. But […]

The 2024 cost-of-living adjustment numbers have been released: How do they affect your year-end tax planning?

The IRS recently issued its 2024 cost-of-living adjustments for more than 60 tax provisions. With inflation moderating slightly this year over last, many amounts will increase over 2023 amounts but not as much as in the previous year. As you implement 2023 year-end tax planning strategies, be sure to take these 2024 adjustments into account. […]

For a tax deduction, what is ordinary and necessary?

Taxpayers can generally deduct the ordinary and necessary costs to run a business if they can prove them. Records of vehicle costs must be contemporaneous and detailed. One taxpayer filed two Schedule C business returns, one for computer consulting, which showed a profit. The other was for construction, and resulted in a net loss, mostly […]

Happy Thanksgiving

“Now, therefore, I do recommend and assign Thursday, the 26th day of November next, to be devoted by the people of these States to the service of that great and glorious Being who is the beneficent author of all the good that was, that is, or that will be.” –George Washington’s Thanksgiving Proclamation, October 3, […]

The 2024 Foreign earned income exclusion

One of the amounts the IRS recently adjusted for inflation is the foreign earned income exclusion amount. This is the amount U.S. citizens or resident aliens who live in foreign countries for at least one uninterrupted tax year can exclude from their foreign earned income. Citizens and resident aliens taxed by the United States on […]

11 Exceptions to the 10% penalty tax on early IRA withdrawals

If you’re facing a serious cash shortfall, one possible solution is to take an early withdrawal from your traditional IRA. That means one before you’ve reached age 59½. For this purpose, traditional IRAs include simplified employee pension (SEP-IRA) and SIMPLE-IRA accounts. Here’s what you need to know about the tax implications, including when the 10% […]

How to keep Thanksgiving under budget — despite rising prices

A cost segregation study may cut taxes and boost cash flow

Is your business depreciating over 30 years the entire cost of constructing the building that houses your enterprise? If so, you should consider a cost segregation study. It may allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow. Depreciation basics Business buildings generally have a 39-year depreciation period […]

Small Business accelerated depreciation election

Under Section 179 of the Internal Revenue Code, companies can “expense” the full cost of qualifying fixed assets to reduce their taxable income. This means they can deduct the purchase amount currently rather than having to depreciate the asset over many years. Both new and used fixed assets can qualify. The election is available for […]

Are you ready for year-end inventory counts?

As year end approaches, it’s time for some calendar-year businesses to perform physical inventory counts. This activity is more than a time-consuming chore; it’s an opportunity to improve your company’s operational efficiency. Here are some best practices as you prepare to count your inventory, as well as guidance on how to get more from these […]