THE LOGISTICS: PAYING THE SALT WORKAROUND TAX We previously sent you information about the details of the SALT cap work around, or Pass-Through Entity (PTET) on November 8, 2021. Here is a brief recap and a link to the full article: The Franchise Tax Board has now published the PTE Elective Tax Payment Voucher (FTB 3893) on November 1, 2021. The voucher may be used by S corporations and partnerships to … 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
Even if you usually wait to file until closer to the April 15 deadline, this year consider filing as soon as you can. Why? You can protect yourself from tax identity theft — and reap other benefits, too. Don’t wait to file you taxes! Tax Identity Theft Tax identity theft involves someone using your personal information to file a fraudulent tax return to claim your refund. Most discover the fraud when you … 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
By carefully selecting which investments to sell- you may be able to save some money on your 2018 tax bill. Creating equilibrium between gains and losses If you’ve sold investments at a gain this year, consider selling some losing investments to absorb the gains. One tax strategy to balance this gain is by also selling investments at a loss. This method is referred to as “harvesting losses”. If, however, you’ve sold investments at … Read more
The Tax Cuts and Jobs Act (TCJA) loosened the restrictions on the eligibility rules for using the cash method of accounting. This made this method — which is simpler than the accrual method — available to more businesses. Now the IRS has provided procedures a small business taxpayer can use to obtain automatic consent to change its method of accounting under the TCJA. If you have the option to use either … Read more
Since most donations to charity of cash or property are used as a tax deduction. It makes sense to ask if donating one’s time would also be deductible. The quick answer is no. Donations of your time or service is not directly deductible. It doesn’t matter if it’s simple administrative work, such as checking in attendees at a fundraising event, or if it’s work requiring significant experience and expertise that … Read more
Have you thought of investing into “going green” initiatives? It is not only helpful in creating a sustainable earth but can potentially reduce your tax and energy bill. The catch to reap all the tax credit benefits is understanding and verifying they fall under specified requirements. Investing and Saving If you make investments into your home in 2018 or 2019, you could be eligible for a tax credit of 30% … Read more
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
