Although home improvements are often expensive, they can also create tax-saving opportunities. But just as renovations involve many details — measurements, materials, specifications and so forth — applicable tax breaks come with rules and limits all their own. Let’s explore some possibilities. Claiming a Mortgage Interest Deduction If you itemize deductions on your return, you
The One Big Beautiful Bill Act (OBBBA) included favorable changes to the federal income tax rules for depreciating business assets. There are annual inflation adjustments to keep track of, as well. Here’s an update on the first-year depreciation rules for yet-to-be-filed 2025 federal income tax returns and the 2026 tax year. 100% First-Year Bonus Depreciation
Home sales often occur during or shortly after a divorce. With real estate values still at or near historical highs in many areas, the federal income tax exclusion for gains on the sale of a principal residence can help. However, divorcing individuals must plan carefully to maximize this tax break. Gain Exclusion Basics An unmarried
Do you know the current rules for claiming tax deductions for business meals and entertainment? Whether you’re wining and dining a prospective customer or taking an employee to lunch, you might be confused about what’s deductible — and you’re not alone. The federal income tax treatment of meals and entertainment expenses has been a moving
The demand for long-term care facilities in the United States continues to rise, along with the costs. Someone who turns 65 today has roughly a 70% chance of eventually requiring long-term care services, according to the latest data from the U.S. Department of Health and Human Services. Moreover, 20% of seniors will need it for
For some time now, individuals age 70½ and older have been able to transfer funds directly from a traditional IRA to an IRS-approved charity. However, with the enactment of the One Big Beautiful Bill Act (OBBBA) earlier this year, these qualified charitable distributions (QCDs) have become an even tax-savvier way to give to charity. If
As the holiday season approaches, you may be thinking about donating your time to a favorite charity. Perhaps you’re organizing a holiday bazaar for a local animal shelter, serving Thanksgiving meals to the homeless, or transporting gifts to needy children. Or maybe you support a cause that’s important to you by volunteering year-round. However many
Significantly fewer taxpayers have owed the alternative minimum tax (AMT) for the last several years. This is because the Tax Cuts and Jobs Act (TCJA) made the individual AMT rules more taxpayer-friendly for 2018 through 2025. The One Big Beautiful Bill Act (OBBBA) contains mixed news about individual taxpayers’ AMT exposure. Here’s an overview of
As the year draws to a close, many businesses look for ways to recognize and thank their employees. From gift cards to holiday treats to service awards, the options are plentiful. But not all gifts are treated equally by the IRS. The tax implications depend on factors such as the type and value of the
As we approach the end of 2025, it’s time to evaluate your year-end tax planning strategies. One important decision is whether you’ll claim the standard deduction or itemize deductions. Thanks to recent changes under the One Big Beautiful Bill Act (OBBBA), this choice carries new weight and can significantly impact your year-end strategies. What’s the
