Tax Deduction for Home Business

Do you Run Your Business from Home? You Might be Eligible for Home Office Deductions If you are self-employed and work out of an office in your home, you may be entitled to home office business tax deduction. However, you must satisfy strict rules. Eligible taxpayers can deduct the “direct expenses” of the home office such as the costs of home office repairs. This includes the costs of painting or … Read more

Vehicle expense deduction for individual taxpayers

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

Decreased or eliminated deductions for 2018 taxes

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

Why you should talk to your accountant before selling your home

With summer as a peak season for selling homes, it is necessary to understand the tax consequences. If you recently put your home on the market, chances are that you’re probably focused on: However, there is more to consider as far how the selling of your home will affect your tax bill for 2018. Talking to your accountant prior can help you understand the best way to proceed on how … Read more

Tax Cuts and Jobs Act lowers medical expense deduction threshold

With rising health care costs, claiming whatever tax breaks related to health care that you can is more important than ever. But there’s a threshold for deducting medical expenses that may be hard to meet. Fortunately, the Tax Cuts and Jobs Act (TCJA) has temporarily reduced the threshold. What expenses are eligible? Medical expenses may be deductible if they’re “qualified.” Qualified medical expenses involve the costs of diagnosis, cure, mitigation, … Read more

Claiming a federal tax deduction for moving costs

Summer is a popular time to move, whether it’s so the kids don’t have to change schools mid-school-year, to avoid having to move in bad weather or simply because it can be an easier time to sell a home. Unfortunately, moving can be expensive. The good news is that you might be eligible for a federal tax deduction for your moving costs. Pass the tests The first requirement is that … Read more

Coverdell ESAs: The tax-advantaged way to fund school costs

Coverdell ESAs With school letting out you might be focused on summer plans for your children (or grandchildren). But the end of the school year is also a good time to think about Coverdell Education Savings Accounts (ESAs) — especially if the children are in grade school or younger. One major advantage of ESAs over another popular education saving tool, the Section 529 plan, is that tax-free ESA distributions aren’t … Read more

Donating a vehicle might not provide the tax deduction you expect

All charitable donations aren’t created equal — some provide a larger tax deduction than others. And it isn’t necessarily just how much or even what you donate that matters. How the charity uses your donation might also affect your deduction. Take vehicle donations, for example. If you donate your vehicle, the value of your deduction can vary greatly depending on what the charity does with it. Determining your tax deduction … Read more

Saving tax with home-related deductions and exclusions

Currently, home ownership comes with many tax-saving opportunities. Consider both deductions and exclusions when you’re filing your 2016 return and tax planning for 2017: Property tax deduction. Property tax is generally fully deductible — unless you’re subject to the alternative minimum tax (AMT). Mortgage interest deduction. You generally can deduct interest on up to a combined total of $1 million of mortgage debt incurred to purchase, build or improve your … Read more