Time is running out on a tax planning technique that can reduce 2023 tax return liability. If a taxpayer qualifies, they can deduct their contributions to a traditional IRA, but the rules are tricky. Background: The maximum amount you can contribute to a traditional IRA for the 2023 tax year is the lesser of 100% [...]
The popularity of electric vehicles (EVs) continues to grow. According to the Energy Information Administration, it is estimated that EVs will have comprised 16.3% of all U.S. new car purchases in 2023 (up from 12.5% in 2022). Hybrid, plug-in hybrid and battery-electric vehicles reached 17.9% of all new light-duty vehicle sales in the second half [...]
NOVEMBER 2023 Dear Clients and Friends: The end of the year is often an optimal time for tax planning, but you must be careful to avoid potential pitfalls along the way. Notably, any year-end tax strategies you implement should take all the latest tax developments into account. Congress has enacted significant tax legislation in [...]
If there is one question we get more than any other it's, "How do I lower my taxes?" So, we did a #podcast on that exact topic. This week's episode focuses on maximizing tax deductions, which can potentially lower your tax bill. The topics include recent rule changes for meals and entertainment, dues, and automobile deductions. We also [...]
Do you receive income other than regular wages during the year? Notably, you may be required to pay quarterly installments of “estimated tax” for this year, especially if you are self-employed or retired and living mainly on investment income. The due date for the next installment—the third one for the 2023 tax year—is September 15, [...]
In a new IRS Fact Sheet (FS-2023-18, 8/8/23), the IRS has announced that it is close to going paperless. The IRS still receives about 76 million paper tax returns and forms and 125 million pieces of correspondence, notice responses and non-tax forms each year. It also has more than one billion historical documents, which costs [...]
We get a lot of questions throughout the year on common personal tax return questions, like what is and isn't deductible or home gain exclusions. If that sounds like you, we have the podcast for you. If you have questions about the Form 1040 aka the US Individual Income #tax return, then we have answers. [...]
Thanks to Alabama Act 2023-554 in the last legislative session, Alabama will start reducing the state’s portion of sales tax on food/groceries (“grocery tax”) on September 1, 2023 from 4% to 3%. In September 2024, the state’s portion will go from 3% to 2%, assuming the ETF grows by more than 3.5%. In total, that [...]
When you exchange real property used for business or held as an investment solely for other business or investment property that is the same type or “like-kind”, it is known as a like-kind exchange under United States tax law. It is also known as a 1031 exchange. The swap transactions, when structured properly, allows for [...]
First, Congress approved the Setting Every Community Up for Retirement Enhancement (SECURE) Act in 2019, affecting qualified retirement plans and IRAs. Now the president has signed into law “SECURE Act 2.0” as part of a spending measure. Following are several key provisions in this new legislation. RMD age threshold: Generally, participants in qualified plans and [...]