Real Estate Professional Status & Passive Losses
Deducting your rental property tax losses against your other income is tricky, as you likely know. You have to get the tax law to treat you—say, a computer engineer—as a tax-code–defined real estate professional (IRS publication 925 discusses passive activity and At-Risk Rules and page 8 further explains Real Estate Professional Status). Let’s say you […]
Tax Planning Updates: Inherited IRAs
If you have inherited an individual retirement account (or may someday inherit) IRAs, the 2025 changes may significantly impact your tax planning. Key Updates Spouses and Special Cases Planning Strategies Strategic withdrawals can help you avoid higher tax brackets. For example, spreading withdrawals evenly over 10 years can minimize tax impact. Timing withdrawals based on […]
Six Things To Know About 529 Withdrawals
The big advantage of 529 plans is that qualified withdrawals are always federal-income-tax-free—and usually state-income-tax-free too. What you may not know is that not all 529 withdrawals are tax-free qualified withdrawals, even in years when you have heavy college costs. Here are six important points to know about 529 withdrawals. Point No. 1: You Usually […]
2024 Last-Minute Tax Tips For Your Stock Portfolio
When you take advantage of the tax code’s offset game, your stock market portfolio can represent a little gold mine of opportunities to reduce your 2024 income taxes. The tax code contains the basic rules for this game, and once you know the rules, you can apply the correct strategies. Here’s the gist: Think of […]
New Tax Credits for Electric Vehicles (EVs)
If you’re in the market for a new car, the federal government would like you to purchase an electric vehicle (EV) or plug-in hybrid EV (PHEV). In 2022, Congress enacted the Inflation Reduction Act, which revamped and expanded tax credits for EVs purchased during 2023 and later. As a result of the new law, there […]
2024 Last-Minute Tax Deductions for Existing Vehicles
December 31 is just around the corner! That’s your last day to find tax deductions available from your existing business and personal (yes, personal) vehicles that you can use to cut your 2024 taxes. Don’t wait, get on this now! 1. Take Back Your Child’s or Spouse’s Car and Sell It We know—this sounds horrible. […]
2024 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 if you want to add to your 2024 retirement deductions. 1. Establish Your 2024 Retirement Plan First, a question: Do […]
2024 Last-Minute Medical Plan Tax Strategies
All small-business owners with one to 49 employees should have a medical plan for their business. Sure, it’s true that with 49 or fewer employees, the tax law does not require you to have a plan, but you should. When you have 49 or fewer employees, most medical plan tax rules are straightforward. Here are […]
2024 Last-Minute Tax-Saving Vehicle Purchases
Here’s an easy question: Do you need more 2024 tax deductions? If the answer is yes, continue reading about last-minute tax-saving vehicle purchases. Next easy question: Do you need a replacement business vehicle? Consider if making last-minute tax-saving vehicle purchases could also be beneficial in this scenario. If so, you can simultaneously solve or mitigate […]
2024 Last-Minute Business Income Tax Deductions
The purpose of this blog post is to reveal how you can get the IRS to owe you money through smart business tax deduction strategies. Of course, the IRS will not likely cut you a check for this money (although in the right circumstances, that will happen), but you’ll realize the cash when you pay […]