2023 foreign housing cost exclusion issued

The IRS has issued the 2023 foreign housing cost exclusions. A U.S. citizen or U.S. resident alien living abroad can elect to exclude the foreign earned income and housing cost amount from gross income (with limitations). This exclusion is calculated based on the number of days physically present in the foreign location. In addition, the […]

Do you have a profit motive?

Taxpayers who are in business to make a profit can generally deduct related expenses on their tax returns. If the IRS doubts a genuine profit motive exists, the activity may be deemed a hobby, limiting the ability to deduct costs. In one case, partners operated a farm that bought, sold, bred and raced Standardbred horses. […]

Proposed Budget faces pressure

President Biden’s $6.9 trillion proposed budget faces fierce headwinds from Republicans. In a March 15 hearing, Republicans on the Senate Budget Committee said the proposals would result in more taxes, more debt, less opportunity and fewer resources for essential government services. The director of the Office of Management and Budget testified that the proposals would […]

Medicare enrollees could see lower costs on 27 Part B drugs in April – CNBC https://bit.ly/3LxmZAV

Renewable energy and efficiency related tax credits

The Inflation Reduction Act (IRA) features several renewable energy and efficiency-related tax credits that may benefit homeowners and businesses in 2023. These include extending the Energy Efficient Home Improvement Credit through 2032 and increasing the amount of the credit from 10% to 30% for installing qualified equipment. Similarly, the Residential Clean Energy Tax Credit has […]

Happy St. Patrick’s Day

“May your troubles be less, your blessings be more, and nothing but happiness come through your door.” Happy St. Patrick’s Day!

ERC Credit in the annual Green Book

The Treasury Department recently released its annual “Green Book,” which explains proposed items in President Biden’s 2024 budget. These include proposals involving the employee retention credit (ERC), which was enacted early in the pandemic to encourage employers to retain employees. The IRS has stated that some companies are filing returns for businesses claiming the ERC, […]

IRS to increase focus on transfer pricing

As part of the IRS’s hiring initiatives, increased staff will focus on transfer pricing noncompliance issues. The tax agency will do this by using sophisticated data analytics, according to Jennifer Best, deputy commissioner of the IRS’s Large Business and International (LB&I) Division. These actions are intended to support the U.S. government’s ongoing efforts to curtail […]

Budget battle continues…Here is the latest.

The battle over President Biden’s proposed 2024 budget continues in Washington. During a recent appearance before the House Ways and Means Committee, Treasury Secretary Janet Yellen bore the brunt of the GOP-controlled committee’s frustrations toward the administration’s spending agenda. Yellen reiterated that the budget’s tax proposals, such as the 25% “billionaire” wealth tax and increasing […]

Where’s My Tax Refund?

Where’s My Tax Refund? https://bit.ly/3JmMKkC