2023 has been a relatively quiet year from both a tax standpoint, and an overall economic standpoint for the United States. After 2022 saw historically high inflation as the economy rebounded from the impacts of the pandemic, inflation has cooled somewhat, and it appears that the chances of a recession have abated. On the tax […]
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Business and Nonbusiness Bad Debts
It is virtually inevitable that at one time or another all of us will incur financial losses in our business and personal lives. One frequently occurring type of loss is a bad debt. Whether made in the course of business, or to a friend or relative, sometimes a loan simply cannot be repaid despite the […]
Eligibility to Elect S Corporation Status
If you are interested in operating your new business as an S corporation, it is important to be aware that only corporations that meet certain criteria are eligible to elect S corporation status. Therefore, here are the basic requirements for eligibility as an S corporation. The corporation must be a domestic corporation (i.e., a corporation […]
2023 Tax Planning: Vehicle Depreciation and Deductions
In general, if you use vehicles in pursuit of a trade or business, you can deduct the ordinary and necessary expenses incurred while operating the vehicle. Taxpayers may use either the standard mileage rate method or the actual cost method to recover vehicle costs. For purposes of these deductions, an “automobile” includes a passenger vehicle, […]
2023 Industry Planning: Rental Real Estate as Qualified Business Income
If you operate a rental real estate business, you may qualify to claim the business income deduction under Section 199A in one of two ways. Qualified Business Income Deduction (QBID) Congress enacted Section 199A to provide a deduction to non-corporate taxpayers of up to 20 percent of the taxpayer’s qualified business income from each of […]
2023 Tax Planning: Basis of Property Acquired Under Code Secs 1031 or 1033
In certain types of transactions there are opportunities for taxpayers to defer gain on the exchange of property, including like-kind exchanges and involuntary conversions. Like-kind exchanges offer tax planning opportunities to defer gain on the exchange real property held for business use or for investment in exchange for similar replacement property. An involuntary conversion is […]
Education Tax Breaks
Tax breaks to help you pay educational expenses are some of the most commonly overlooked federal tax breaks. They shouldn’t be. These are very valuable tax breaks and we can help you maximize your tax savings. Getting the most from the education tax incentives requires careful planning, particularly because of the interrelationship between many of […]