What To Do with an Overfunded 529 College Savings Account
You can accumulate federal income-tax-free earnings with a Section 529 college savings plan account. Then, you can take federal-income-tax-free withdrawals to cover qualified education expenses, usually for college. Great! But what if your designated account beneficiary decides not to attend college? What are your options, and what are the federal income tax consequences for those […]
2023 Last-Minute Retirement Deductions
The clock continues to tick. Your retirement is one year closer. You have time before December 31 to take steps that will help you fund the retirement you desire. Here are five things to consider for 2023 last-minute retirement deductions. 1. Establish Your 2023 Retirement Plan First, a question: Do you have your (or your […]
2023 Last-Minute General Business Income Tax Deductions
Here are six powerful business 2023 last-minute deduction strategies you can easily understand and implement before the end of the year. 1. Prepay Expenses Using the IRS Safe Harbor You just have to thank the IRS for its tax-deduction safe harbors. IRS regulations contain a safe-harbor rule that allows cash-basis taxpayers to prepay and deduct […]
Switch from the Milage-Rate to the Actual-Expense Method
Is the mileage rate sticking it to you? Could you increase your tax deductions by switching from the IRS mileage rate to the actual-expense method? If so, you will be happy to learn you can make that switch. When you choose the mileage rate, you elect out of the actual-expense method and also elect out […]
Ways Rental Property Owners Can Avoid the Net Investment Income Tax
The federal income tax tables do not give you your “true” tax rates. Here’s one example: the net investment income tax (NIIT). It’s a hefty 3.8 percent on top of what you pay according to the table rates. If you own rental property, you’re one of the NIIT’s prime targets. You pay the NIIT only […]
How to Deduct Business Travel Expenses by Different Transportation Methods
Say you are going to travel from your home in Washington, D.C., to San Francisco. Will the tax law allow you to travel to San Francisco by car, train, plane, or boat, your choice? Answer. Yes. But special rules apply. You need to know these rules to guarantee your business travel expenses. Travel by Car […]
New 2024 Businesses and Rentals Initiate FinCEN Filings
After years of delays, the first stage of the Corporate Transparency Act (CTA) goes into effect on January 1, 2024. It imposes a new federal filing requirement for most corporations and limited liability companies (LLCs) formed in 2024 and later. The CTA’s purpose is to prevent the use of anonymous shell companies for money laundering, […]
Know What the IRS Say About Deducting More Than One Vehicle
Contrary to popular belief, the IRS does not limit business owners to claiming deductions on only one business vehicle. Here are some resources and information on deducting more than one vehicle. Small businesses might maximize tax benefits by using multiple vehicles for business purposes. This is particularly true when the vehicles are used predominantly (more […]
Moving to the United States? Tax Info for Foreigners
Say you have a friend who moved to the U.S. from Greece. Here is a high-level look at eight U.S. foreigner tax considerations your friend needs to know: Tax residency. A foreign individual’s income tax obligation in the U.S. hinges on their tax residency status—whether they are a resident alien or non-resident alien. Resident aliens […]
Tax Obligations for U.S. Citizens Working or Living Abroad
Many employees take opportunities to live and work in various parts of the world but may have concerns about their U.S. tax obligations for working or living abroad. We want to alert you to the tax implications you might encounter as a U.S. citizen living or working abroad. We’re going to use Switzerland in our […]