The Charitable Act

The Charitable Giving Coalition (CGC) has formally asked the U.S. House Ways and Means Committee and Senate Finance Committee to pass the bipartisan Charitable Act. The Tax Cuts and Jobs Act made many taxpayers ineligible to deduct charitable contributions because they must itemize to claim the deduction. The result: widespread declines in donations to charity […]

Happy New Year

“Write it on your heart that every day is the best day in the year.” —Ralph Waldo Emerson Wishing you a safe & happy New Year!

Final Regulations for Premium Tax Credit Issued

The IRS has issued final regulations that modify the definition of a “coverage month” for purposes of calculating the premium tax credit (PTC). The credit helps eligible individuals cover their premiums for health insurance purchased through the Health Insurance Marketplace. The regs clarify that a month qualifies as a coverage month if the amount of […]

How inflation will affect your 2024 and 2025 tax bills

Inflation can have a significant impact on federal tax breaks. While recent inflation has come down since its peak in 2022, some tax amounts will still increase for 2025. The IRS recently announced next year’s inflation-adjusted amounts for several provisions. Here are the highlights. Standard deduction. What does an increased standard deduction mean for you? […]

BOI filings under injunction again

Beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act have been suspended nationwide in a federal court ruling. The case is currently under appeal, and a future ruling could lift the injunction. Affected businesses can voluntarily submit BOI reports, according to the Financial Crimes Enforcement Network (FinCEN). To that end, FinCEN’s system for […]

Last minute tax break?

Can you claim the American Opportunity Tax Credit (AOTC) or Lifetime Learning Credit (LLC) for tuition expenses? If eligible, you may secure a last-minute tax break for 2024 if you pay these expenses by December 31. This is true even if the academic period begins in 2025, but no later than the end of March […]

Goodwill impairment: Is your company at risk?

Goodwill impairment is often a negative indicator. It potentially signals that a business combination failed to meet management’s expectations due to internal or external factors. In recent years, uncertain markets, lingering inflation and high interest rates have caused goodwill impairments to spike. Evaluating impairment trends In 2022, 400 U.S. public companies reported $136.2 billion of […]

What if I donate a car?

Donating a car to your favorite charity helps the organization and may give you a nice tax deduction. But you must itemize deductions and meet strict requirements. You need a written acknowledgment letter from the charity with specific details for a vehicle worth at least $250 but not more than $500. You must have this […]

Tax breaks may help offset business holiday expenses

IRS cracks down on deferred legal fee arrangements

Attorneys and law firms with deferred legal fee arrangements, take note: The IRS is watching. According to the tax agency, some taxpayers have delayed recognizing contingency fees as taxable income by transferring up to 40% of individual case settlements to third parties. In such arrangements, third parties generally hold the transferred fees for at least […]