Since the qualified business income (QBI) deduction first became available in 2018, things have changed dramatically, mainly due to the various effects of the COVID-19 pandemic. Possible tax rate increases and inflation have also entered into the mix. How do these developments affect planning to maximize QBI deductions for your business? The Basics The QBI deduction
Good news: You just found out that your high school senior son or daughter will be receiving a sizeable scholarship at a prestigious university next fall. But what are the tax consequences? In most cases, scholarships awarded to students are exempt from federal income tax, assuming certain conditions are met. Comparable rules apply to fellowships for
Many companies are experiencing a buildup of accounts receivable on their balance sheets as customers – especially large corporate buyers – are stretching out their payment terms. While these bills may eventually be paid, delays are causing a cash flow crunch across many supply chains. Recent Study The CFO/The Hackett Group 2021 Working Capital Scorecard provides
Mutual funds are an attractive investment option, especially for people who are looking for a low-maintenance, long-term way to participate in the securities markets. These funds are managed by professionals who should be well-qualified to judge which securities are attractive bets. Mutual funds also make it easier to maintain a diversified portfolio, which can reduce risk
Exchange traded funds (ETFs) are hot. Last year, $507.4 billion flowed into ETFs listed in the United States, according to Statista, a provider of market and consumer data. Net assets held by ETFs totaled roughly $5.4 trillion in 2020 – up from less than $1 trillion a decade earlier. The trend has apparently continued with a
In many areas, residential real estate markets have surged, and some are still surging. In these sellers’ markets, big home-sale gains are likely. That’s great news if you’re a seller – but will you owe taxes on the profit? If you sell your principal residence for a large profit, you can potentially exclude tax (pay
What’s Happening in Congress with Proposed Tax Laws? The $3.5 trillion “human infrastructure” bill is progressing through Congress. The House Ways and Means Committee voted September 15 to advance legislation that would raise taxes on wealthy Americans and corporations. The proposed law, called the Build Back Better Act, will help fund President Biden’s plans for
Football season will be kicking off soon. Beware: If you participate in fantasy sports leagues for money, there may be tax implications related to these activities. For instance, you may enter fantasy sports competitions offered by sponsors like FanDuel and DraftKings where you can win or lose money daily or weekly based on the performance
Do you own real estate that will produce a big capital gain when you sell it? Fortunately, you may be able to realize significant tax benefits by negotiating an installment sale of the property. However, there are several potential tax traps to avoid. How do you qualify for installment sale reporting? It’s relatively easy. All
With autumn coming up in a couple months, it’s time to think about “harvesting” capital gains or losses from sales of securities. In addition, unfavorable tax law changes proposed in President Biden’s American Families Plan (AFP) may create an added sense of urgency for some taxpayers. The Basics When you sell securities and other capital
