If you’ve recently bought an electric or hybrid vehicle, you could be eligible for a federal income tax credit of up to $7,500. There might be additional state tax breaks and other incentives available to you depending on where you live. However, the tax break is subject to a complex phaseout rule based on sales made by a given manufacturer. The phaseout may reduce or eliminate the tax credit. Vehicles … Read more
If you recently established a new business, or you are contemplating starting one, you are now in a hectic, exciting time. Generally, with startup costs, one must spend a lot of money before opening their business. Expenses often go towards training workers, paying for rent, utilities, marketing and more. What first-time business owners often don’t know is that many expenses cannot be deducted right away. The way you handle some of … Read more
To save more for retirement, you can make a deductible traditional IRA contribution for the 2018 tax year. This will be between now and the tax filing deadline. This will allow you to claim the write-off on your 2018 return. You can also contribute to a Roth IRA and avoid paying taxes on future withdrawals. In order to qualify, you must have a 2018 earned income from jobs, self-employment or alimony … Read more
If you made significant gifts to your children or grandkids last year, it’s important to know whether you’re required to file a 2018 gift tax return or whether filing one would be beneficial. When you should file a gift tax return? Usually, you must file one for 2018 if, during the tax year, you made gifts: You’ll only owe tax to the extent an exclusion doesn’t apply, and you’ve used up … Read more
The good news is that it’s not just businesses that can deduct vehicle-related expenses. Vehicle expense deduction for taxpayers also can deduct them in select circumstances. The bad news is the Tax Cuts and Jobs Act (TCJA) might reduce your deduction compared to what you claimed on your 2017 return. For 2017, miles driven for business, moving, medical and charitable purposes were potentially deductible. For 2018 through 2025, business and moving miles … Read more
While the Tax Cuts and Jobs Act (TCJA) reduces most income tax rates and expands some tax breaks. It limits or eliminates several itemized deductions that have been valuable to many individual taxpayers. Here are five important deductions you may see reduced or eliminated when you file your 2018 income tax return: State and local tax deduction. For 2018 through 2025, your total itemized deduction for all state and local taxes combined — including property tax … Read more
What to consider for 2018 taxes Typically, commercial buildings and improvements are depreciated over 39 years. This means you can deduct a portion of the cost every year over the depreciation period. (This excludes land- you cannot devalue it.) However, specific real estate investments have different tax breaks. Which allow you to implement deductions more rapidly. Many tax laws were revised by the Tax Cuts and Jobs Act (TCJA) to provide a … Read more
According to the IRS Data Book, the IRS audited nearly 1.1 million tax returns in 2017. That is approximately 0.5 percent of all returns. Although it may not seem like a considerable number, don’t raise your glass in victory too soon. The IRS has a few folks on their radar, and sometimes it is not because one did anything wrong. Why the IRS may audit you The IRS not only collects … Read more
While most provisions of the Tax Cuts and Jobs Act (TCJA) have gone into effect last year and either apply through 2025 or are permanent. There are two significant tax changes under the act for 2019. Here’s a quick overview. 1. Deductions on medical expenses It is no secret that health care costs increase every year. Therefore, claiming any tax breaks related to health care is essential. However, there are requirements on how … Read more
