The IRS adds more vehicles to its list of those eligible for a federal tax credit. The tax code provides a credit (of up to $7,500) to purchasers of qualified plug-in electric-drive passenger vehicles and light trucks. Here are the new eligible vehicles, along with their credit amounts: The 2022 Audi e-tron Sportback, Audi e-tron, … Read More
Do you have significant investment-related expenses, including the cost of subscriptions to financial services, home office expenses and clerical costs? Under current tax law, these expenses aren’t deductible through 2025 if they’re considered investment expenses for the production of income. But they’re deductible if they’re considered trade or business expenses. For years before 2018, production-of-income … Read More
The IRS has updated a page on its website that discusses what an individual taxpayer needs to know about taxes and bankruptcy. For example, the IRS tells individuals that before filing a bankruptcy petition under Chapter 13 they should file all required tax returns for tax periods ending within four years before filing the petition. … Read More
Because of the COVID-19 pandemic and the resulting economic turndown in some areas, you may have family members in need of financial support. If you’re interested in lending money to loved ones in need, consider establishing a “family bank.” These entities enhance the benefits of intrafamily loans, while minimizing unintended consequences. Intrafamily loans Lending can … Read More
Taxpayers who wish to challenge the IRS over unpaid taxes can do so by appealing the filing of a Notice of Federal Tax Lien or the issuance of a Notice of Intent to Levy. The appeal goes to the Independent Office of Appeals. The Treasury Inspector General for Tax Administration (TIGTA) has completed its annual … Read More
Although probate can be time consuming and expensive, one of its biggest downsides is that it’s public — anyone who’s interested can find out what assets you owned and how they’re being distributed after your death. The public nature of probate may also draw unwanted attention from disgruntled family members who may challenge the disposition … Read More
The IRS has released more guidance on the temporary premium assistance for COBRA continuation coverage under the American Rescue Plan Act. The issues addressed include the availability of premium assistance to individuals eligible for an extension who hadn’t elected it; whether premium assistance for vision or dental-only coverage ends due to eligibility for other health … Read More
An irrevocable trust has long been a key component of many estate plans. But what if it no longer serves your purposes? Is it too late to change it? Depending on applicable state law, you may have several options for fixing a “broken” trust. How trusts break There are several reasons a trust can break, … Read More
The IRS reported that another 1.5 million taxpayers will receive refunds averaging more than $1,600 as it continues to adjust unemployment compensation from previously filed income tax returns. The American Rescue Plan Act excluded up to $10,200 in 2020 unemployment compensation from taxable income calculations. The exclusion applied to individuals and married couples whose modified … Read More
Many businesses are spending more time and resources addressing issues related to diversity, equity and inclusion (DEI). Thoughtfully designed DEI programs seek to help employees better understand, accept and appreciate differences among everyone on staff. A program can include training courses, seminars, guest speakers, group discussions and social events. If you decide to implement one, … Read More