Business deductions of Net Operating Losses

Generally, business taxpayers can deduct a net operating loss (NOL) from income when filing a tax return, but they bear the burden of showing an NOL is valid. Tax law defines an NOL as the excess of deductions over gross income. One couple was denied an NOL deduction on their joint return. Reasons for the […]

Using an IRA for college expenses

As any parent with a child in college knows, higher education is expensive. If you’re paying college costs for yourself or certain other people and money is tight, you might consider tapping your traditional IRA. Generally, if you’re under age 59½, tax law imposes a 10% “early withdrawal” penalty tax, unless an exception applies. One […]

Be careful when dealing with NFTs

Recently, the U.S. Treasury Department released a risk assessment report about nonfungible tokens (NFTs). It warns that NFTs are “highly susceptible” to use in fraud and money laundering schemes. Risk rises for NFT platforms and buyers when cybersecurity and antifraud controls aren’t adequate. Confusing copyright and trademark laws, as well as hype and fluctuating pricing […]

Is your home a money pit?

There’s a reason some homeowners refer to their residences as “money pits.” Owning and maintaining a home can be expensive. So it’s important to keep in mind the tax breaks available to homeowners, starting with the mortgage interest deduction. If you itemize deductions, you generally can deduct interest on up to $750,000 in mortgage debt […]

Guidance issued for clean electricity production credit

The IRS has released proposed regulations that provide guidance for determining and claiming the clean electricity production credit (Section 45Y) and the clean electricity investment credit (Section 48E). The Inflation Reduction Act established the two clean energy credits. Taxpayers may be eligible for a credit on electricity produced from a qualified clean electricity facility or […]

Universal Savings Accounts idea gaining traction

As Congress debates extending provisions of the Tax Cuts and Jobs Act, one concept that’s gaining traction is the use of Universal Savings Accounts (USAs). Speaking before the Senate Finance Committee, Veronique de Rugy, a senior research fellow at George Mason University, said if enacted, “[USAs] will allow workers to save in one simple account […]

Planning for next year’s tax return

Summer’s almost here, and the April tax season is in the rearview mirror. But a few simple tax planning steps during the year can take the stress out of filing your next tax return. You might even be able to improve your next refund or lower your next tax bill. Before heading to the beach, […]

Clean Vehicle Credits

The IRS has issued final regulations to clarify and modify the tax credits for new and previously owned clean vehicles. The credits are part of the Inflation Reduction Act, which allows a maximum credit of $7,500 for a new clean vehicle that meets certain requirements. The credit for previously owned clean vehicles is up to […]

Credit for Summer Camp Expenses

Once kids are out of school for the summer, many will head to summer camp. Although camp can be a costly proposition for parents, day camp costs may count as an expense toward the federal child and dependent care credit. This credit ranges in value from 20% to 35% of day camp expenses, depending on […]

Billiionaire tax rejected

Recently, U.S. Treasury Secretary Janet Yellen rejected a proposal made by Brazil’s finance minister and other Group of 20 (G20) countries to implement a 2% global minimum tax on billionaires. The proposal would tax 3,000 of the world’s wealthiest taxpayers, similar to the Organization for Economic Co-operation and Development’s Pillar Two tax on the world’s […]