The Path to Decent Home Loan Interest Rates Through Family Loans
Here’s some information on how you can help a family member buy a home by making a loan to them while ensuring that you and the family member benefit from a tax-smart loan structure. With the current national average interest rates for 30-year and 15-year fixed-rate mortgages at 6.81 percent and 6.13 percent, respectively, family […]
The Latest IRS Update on Tax Credits for Electric Vehicles
The IRS has issued new information about tax credits for electric vehicles. Now there are four ways you can possibly benefit from a federal tax credit for an electric vehicle that start being serviced in 2023 or later: Purchase an electronic vehicle, then claim the clean vehicle credit. Lease an electronic vehicle, then benefit from […]
Can Your Kids Get Tax-Free Education Benefits if You Hire Them?
If your children work in your business, consider giving them tax-free education fringe benefits. Doing this right creates tax deductions for the business, and tax-free fringe education benefits for the child. You can accomplish this without a Section 127 plan when your child needs the education to do the job for your business or comply […]
How to Avoid Exposure by Wrongly Using the $75 Rule
The $75 rule applies to certain business expenses where you do not need a receipt. But I emphasize that this rule does not apply to all tax deductions. Many taxpayers mistakenly apply the $75 rule to all their tax deductions, which can result in a significant loss of deductions and penalties. I encourage you to […]
Avoid This Family Member S Corporation Health Insurance Mistake
I’m reaching out to remind you of two important issues related to health insurance deductions for S corporations. First If you own more than 2 percent of an S corporation and provide health insurance coverage, there are three steps you need to follow to claim a deduction: Step 1. The cost of the insurance must […]
How to Avoid Retirement Account Early Withdrawal Penalties
The government does not want you to withdraw money from your IRAs and other retirement accounts before age 59 1/2. To deter early withdrawals, the government imposes a 10 percent penalty tax, in addition to regular income tax in the case of tax-deferred accounts. But what if you want to access your retirement funds before […]
Overview of 2023 Business Meals and Entertainment
We want to provide you with the latest updates on the business meal deduction for 2023 and beyond. As you may already know, there have been some significant changes to business meal deductions for 2023 and beyond. The deduction for business meals has been reduced to 50 percent, a significant change from the previous 100 […]
SECURE 2.0 Act Creates New Tax Strategies for RMDs
As you are likely aware, if you have an IRA or other tax-deferred retirement account, you must start taking required minimum distributions (RMDs) once you reach a certain age. The SECURE 2.0 Act raises the age at which RMDs must first be taken, from age 72 to age 75, over the next 10 years. Specifically, the […]
Plan Your Passive Activity Losses for Tax-Deduction Relevance
In 1986, lawmakers drove a stake through the heart of your rental property tax deductions (The Tax Reform Act of 1986). That stake, called the passive-loss rules, causes myriad complications that now, 37 years later, are still commonly misunderstood. The Trap In 1986, lawmakers made you shovel your taxable activities into three basic tax buckets. Looking […]
An Update on 2023 Health Insurance for S Corporation Owners
We are writing to update you on the latest developments in 2023 health insurance for S corporation owners. As a more-than-2-percent S corporation owner, you are entitled to some good news when it comes to your health insurance. 3 Helpful steps for Health Insurance for S corporation owners To ensure that your health insurance deductions […]