IRS had announced annual inflation adjustments for more than 50 tax provisions for tax year 2017, following are items of greatest interest to most taxpayers: Standard deduction for married filing jointly rises to $12,700 for tax year 2017, up $100 from the prior year. For single taxpayers and married individuals filing separately, the standard deduction rises to $6,350 in 2017, up from $6,300 in 2016, and for heads of … Read more
The election of Donald Trump as President of the United States could result in major tax law changes in 2017. Proposed changes spelled out in Trump’s tax reform plan released earlier this year that would affect businesses include: Reducing the top corporate income tax rate from 35% to 15%, Abolishing the corporate alternative minimum tax, Allowing owners of flow-through entities to pay tax on business income at the proposed 15% … Read more
The home office deduction is one of the most popular deductions for self-employed taxpayers who have an office in the home. If you work from home, you may be entitled to above the line deductions for the following: The “direct expenses” of the home office include depreciation deductions for equipment, furniture, and fixtures directly related or used in the home office. The costs of painting or repairing the home office … Read more
Crowdfunding and Kickstarter campaigns have become very popular over the last few years for entrepreneurs, inventors, individuals, and companies to raise funds to support their endeavors. If you are new to crowdfunding, an entrepreneur will ask for money via an online platform and anyone throughout the world can donate money for their cause. While the IRS has not provided much guidance on funds raised from crowdfunding and Kickstarter campaigns there … Read more
Why An Estimated Tax Checkup May Be Necessary It’s not a major disaster if you owed some money when you filed your return-after all, you’d rather have the use of the funds for as long as possible. But what you want to avoid is having to pay the IRS a penalty for underpaying your taxes during the year. If you owe the estimated tax underpayment penalty, which is nondeductible, you’re … Read more
2 Extended Credits Can Save Businesses Taxes on 2015 returns The Protecting Americans from Tax Hikes Act of 2015 (PATH Act) extended a wide variety of tax breaks, in some cases making them permanent. Extended breaks include many tax credits — which are particularly valuable because they reduce taxes dollar-for-dollar (compared to deductions, for example, which reduce only the amount of income that’s taxed). Here are two extended credits that … Read more
7 highly suggested last-minute tax-saving tips The year is quickly drawing to a close, but there’s still time to take steps to reduce your 2015 tax liability — here are some tips you must act on by December 31: Pay your 2015 property tax bill that’s due in early 2016. Make your January 1 mortgage payment. Incur deductible medical expenses (if your deductible medical expenses for the year … Read more
Save tax- or at least defer it- by carefully timing business income and expenses The first step to smart timing is to project your business’s income and expenses for 2015 and 2016. With this information in hand, you can determine the best year-end timing strategy for your business. If you expect to be in the same or lower tax bracket in 2016, consider: Deferring income to 2016. If your business … Read more
Two Tax Consequences to consider if you’re refinancing a home Now may be a great time to refinance, because mortgage rates are still low but expected to increase. Before deciding to refinance, however, here are a couple of tax consequences to consider: Cash-out refinancing. If you borrow more than you need to cover your outstanding mortgage balance, the tax treatment of the cash-out portion depends on how you use the … Read more
