Tax-Exempt organizations get AMT filing relief for 2023

Good news for tax-exempt organizations: You don’t have to file Form 4626 for tax year 2023. This form is used to report liability for the corporate Alternative Minimum Tax (AMT), created by the Inflation Reduction Act. There has been some ambiguity about whether tax-exempt organizations can be considered corporations subject to the corporate AMT. Regulations […]

How the U.S. election changes the outlook for taxes

The outcome of the November 5 election is likely to significantly impact taxes. Many provisions in President-elect Donald Trump’s signature tax legislation from his first time in the White House, the Tax Cuts and Jobs Act (TCJA), are scheduled to expire at the end of 2025. Now, there’s a better chance that most provisions will be […]

IRS issues proposed regulations for Energy Efficient Home Improvement Credit

The IRS has issued proposed regulations for the Energy Efficient Home Improvement Credit, which became effective in 2023. Homeowners who place qualified property into service can claim a federal tax credit equal to 30% of the amount they paid for qualified products or for a home energy audit. However, the maximum credit amount is $3,200. […]

Guidance Issued for the Advanced Manufacturing Production Credit

The IRS has issued final regulations to provide guidance for the Advanced Manufacturing Production Credit created by the Inflation Reduction Act (IRA). The tax credit is for producing and selling statutorily specified eligible components to unrelated persons. Such eligible components include solar and wind energy components, inverters, qualifying battery components and 50 applicable critical minerals. […]

Unlock your child’s potential by investing in a 529 plan

If you have a child or grandchild planning to attend college, you’ve probably heard about qualified tuition programs, also known as 529 plans. These plans, named for the Internal Revenue Code section that provides for them, allow prepayment of higher education costs on a tax-favored basis. There are two types of programs: Prepaid plans, which allow […]

Due dates for disaster extension recipients

Taxpayers who’ve received disaster extensions to file their 2023 tax year returns have varying deadlines based on their locations. For example, taxpayers in the entire states of Alabama, Florida, Georgia, North Carolina and South Carolina, as well as those in parts of Tennessee and Virginia, have until May 1, 2025, to file 2023 returns. For […]

Should I give a gift?

As the year winds down, you may want to combine smart estate tax planning with tax savings using the annual gift tax exclusion. You can give cash or property (up to a specified value) to an unlimited number of family members or friends each year without gift tax implications. That specified amount is subject to […]

Advantages of keeping your business separate from its real estate

Does your business require real estate for its operations? Or do you hold property titled under your business’s name? It might be worth reconsidering this strategy. With long-term tax, liability and estate planning advantages, separating real estate ownership from the business may be a wise choice. How taxes affect a sale Businesses that are formed […]

Tax breaks may be available for adoption of children

Adopting a child is expensive. Fortunately, there may be tax breaks to help adoptive parents offset some of the costs. In 2024, a credit of up to $16,810 is available for qualified expenses, with phaseouts for higher-income parents. In 2025, the credit will rise to $17,280. The credit is nonrefundable, which means it’s limited to […]

Cannabis remains a scheduled drug not allowing tax deductions

Recently, a California-based medical cannabis dispensary was denied federal tax deductions for business expenses and charitable contributions. Even though the dispensary is licensed in California and its trade is legal under California law, “trafficking marijuana” is illegal under federal law. In denying the deductions, the U.S. Tax Court referenced IRC Sec. 280E, which prohibits deductions […]