Newsletters
IRS Increases Mileage Deduction Rate
Posted July 2022
On June 9, 2022, the IRS implemented a mid-cycle increase to the mileage deduction rate for vehicles used for business purposes. The increase to 62.5 cents per mile, up from the current rate of 58.5 cents per mile, will take effect July 1 and remain for the rest of 2022.
Gift, Estate and Generation-Skipping Transfer Tax Changes for 2022
Posted July 2022
After remaining the same for four years, the annual gift tax exclusion has increased from $15,000 to $16,000 for gifts made on or after January 1, 2022. The exclusion is the most you can give away for the benefit of a single person within a calendar year without the need to file a federal gift tax return or reduce your lifetime exemption. If you are married, you can elect to “split” these gifts with your spouse, which essentially doubles the annual exclusion.
Rules on Inherited IRAs and Other Post-Death IRA Issues
Posted July 2022
When you are the named beneficiary of an individual retirement account (IRA) and the owner of the IRA dies, you receive as an inheritance the amount in the IRA. Under current tax law, the inheritance passes to you tax-free, that is you do not pay taxes at the time the IRA ownership passes to you. But you are still required to take distributions from the account, which may be taxable. We will briefly explore the different type of IRA accounts and their taxability to the beneficiary of that account.
Tax Filing Reminders – July 2022
August 1st
August 15th
September 15th
September 30th
October 17th
Things to do After You File Your Tax Return
Posted May 2022
You have filed your tax return, or your preparer has done so on your behalf, so what is next?
1. If you have a refund coming, you can check the status of your refund within 24 hours after the IRS accepts your return. The best way to do this is to use the tool “Where’s my Refund” located on the IRS.gov website. In order to use the tool, you will need your Social Security Number, filing status and the exact amount of refund shown on your tax return.
Fiscal year 2023 Treasury Tax Proposals
Posted May 2022
On March 29, 2022 the U.S. Treasury Department issued “General Explanations of the Administration’s Fiscal Year 2023 Revenue Proposals, ” otherwise known as the Greenbook. The paper outlines the details of the Biden Administration’s tax policy proposals for Fiscal Year 2023. The proposals coincide with the Biden Administration’s budget proposals.
Individual Estimated Tax Payments
Posted May 2022
Many taxpayers, especially those who do not have taxes withheld from their paycheck, are required to make quarterly estimated tax payments. Estimated payments for individual taxpayers are due April 15, June 15, September 15 and January 15 of the next year.
Amortization of R&E expenditures
Posted April 2022
Effective for amounts paid or incurred in tax years beginning after Dec. 31, 2021, taxpayers may no longer deduct, as a current year expense, research and experimental (R&E) expenditures, but must amortize them over five years or longer. This change was one of the provisions of the Tax Cuts and Jobs Act (TCJA) enacted in late 2017.
Sales of NFTs Create Taxable Income
Posted April 2022
It is one of the hottest segments of the crypto world: NFTs or non-fungible tokens. It is a market that has ballooned to over $44 billion in sales annually.
WHEN INCOME FROM SHORT-TERM RENTALS IS SELF-EMPLOYMENT INCOME
Posted April 2022
The IRS released Chief Counsel Advice 202151005 in late 2021. The advice addresses when short-term rental income is subject to self-employment taxes.