Debt agreement impacts to the budget

The U.S. Senate has passed the Fiscal Responsibility Act (FRA) and President Biden signed it last weekend. It suspends the debt ceiling until 2025 and makes several changes related to domestic spending. Among the discretionary spending cuts, the IRS will lose some of its $80 billion funding provided by the Inflation Reduction Act. The FRA […]

Keep these DOs and DON’Ts in mind when deducting business meal and vehicle expenses

If you’re claiming deductions for business meals or auto expenses, expect the IRS to closely review them. In some cases, taxpayers have incomplete documentation or try to create records months (or years) later. In doing so, they fail to meet the strict substantiation requirements set forth under tax law. Tax auditors are adept at rooting […]

Identity unknown?

Identity unknown? If the IRS suspects a person with unknown identity of tax violations, it may ask a court for permission to serve a “John Doe summons” to obtain information. At the same time, the U.S. Dept. of Justice states that cryptocurrency transactions have an “inherently pseudo-anonymous aspect” and may be used to hide taxable […]

Living Overseas?

Attention Americans living and working abroad: The clock is ticking toward the deadline to file your federal income tax return. The due date is June 15 if your tax home and residence are outside the U.S. and Puerto Rico, or you’re serving in the military outside the U.S. and Puerto Rico on the regular tax […]

Benefits of a living trust for your estate

You may think you don’t need to make any estate planning moves because of the generous federal estate tax exemption of $12.92 million for 2023 (effectively $25.84 million if you’re married). However, if you have significant assets, you should consider establishing a living trust to avoid probate. Probate is a court-supervised legal process intended to […]

Benefits of a living trust for your estate

If you have significant assets, you should consider establishing a living trust to avoid probate. Probate is the legal process intended to make sure a deceased person’s assets are properly distributed. However, going through probate typically means red tape, legal fees and your financial affairs becoming public information. You can avoid this with a living […]

Debt Bill passes

On May 31, the U.S. House of Representatives passed a bill to suspend the debt ceiling through Jan. 1, 2025. The Fiscal Responsibility Act will limit non-defense federal spending, and according to the Congressional Budget Office, would reduce federal budget deficits by $1.5 trillion over the next 10 years. Among other provisions, the bill will […]

Student Loan Debt

Tax relief may be available for student loan debtors, but only if they meet income requirements. Individuals with qualified student loans can deduct on their federal income tax return up to $2,500 of interest annually if their modified adjusted gross income is $75,000 or less ($155,000 for married couples filing jointly). If they earn more, […]

FASB votes to exempt private companies from disaggregation of income statement project

Private companies can breathe a sigh of relief: The Financial Accounting Standards Board (FASB) and the Private Company Council have agreed to give them a pass on a coming proposal that, if approved, would require expanded footnote disclosures about expenses. The reason for the exemption is that the projected costs of complying with the proposal […]

Which medical expenses are tax deductible?