The IRS announced many inflation adjustments for the 2023 tax year. IRS Revenue Procedure 2022-38 provides details about these amounts. Because inflation is high, many of the amounts for 2023 will change more than they have in recent years. Here are some of the tax amounts for 2023, as compared with 2022. Tax Item 2023 2022
New Rules for EV Tax Credits Under the IRA
You’ve probably heard that the newly enacted Inflation Reduction Act of 2022 (IRA) includes a package of measures to fight climate change, including tax incentives for both consumers and businesses. Among other things, the law extends and revises a tax credit for buying a “clean vehicle” through 2032. This was previously referred to as the electric
What you Need to Know About Taxes and Gig Work
The COVID-19 pandemic has seen an expansion of the so-called “gig economy,” also known as the sharing or access economy. According to the Pew Research Center, 16% of U.S. workers have ever earned money through an online gig program, such as Uber, DoorDash, or Instacart. The opportunity to be your own boss or simply to make
Small Business Alert: Take Advantage of the WOTC for New Hires
In today’s tight labor market, small businesses may need to think outside the box to find employees to fill open positions. In some cases, you may have to sweeten the deal with higher salaries or extra benefits. But you may be able to offset higher compensation costs with a lucrative federal tax credit for hiring
Consider Taxes Before Selling a Highly Appreciated Vacation Home
Real estate markets are still surging in many parts of the country, especially in some popular travel destinations. If you’re thinking about selling a vacation home that’s increased dramatically in value, you might be rightly concerned about the tax hit. While the limited federal income tax gain exclusion break is still on the books it’s only
Spring Cleaning Your Personal Tax Files
The general rule for retaining federal tax records is three years. That’s because the statute of limitations for the IRS to audit your tax return is typically three years. The statute of limitations starts on the latter of 1) the due date for your tax return or 2) the date on which you file your taxes.
Tax Angles for Landlords Today
The economic fallout from the COVID-19 pandemic caused some rental real estate properties to run up tax losses in 2020 and 2021, as tenants struggled to pay rent. If you’re a landlord, you may have had to negotiate lease modifications that were unfavorable to you in order to help tenants. To make matters worse, more
Take Advantage of Tax Breaks for Small Businesses
If you own a small or medium-sized business, it may be eligible for some significant tax breaks that aren’t available for larger entities. Here are three examples to consider as you file your tax return for 2021 and plan for 2022. 1. QBI Deduction The qualified business income (QBI) deduction was a centerpiece of the Tax
5 Categories of Interest Expense: What’s Deductible?
People often ask: Is the interest paid during the year deductible on my federal income tax return? The answer is, “It depends.” Generally, the interest you incurred must be allocated among the following five “baskets” for tax purposes. Based on how the interest is classified, it may be nondeductible, partially deductible, or fully deductible. Other special
Do LLC Members Owe Self-Employment Tax?
The federal tax code’s self-employment tax provisions were enacted long before the existence of limited liability companies (LLCs). As LLCs became increasingly popular, an important question arose: How do the self-employment tax rules apply to LLC members? Despite IRS attempts to make the issue go away, that question still exists for LLCs with several members, which