Contribute IRA Funds to Charity for a Tax Break

Certain older taxpayers may be able to benefit from a unique tax break. Transfer funds directly from an IRA to an IRS-approved charity. Although the charitable contribution isn’t deductible, the distribution from the IRA isn’t taxable. And the payout qualifies as a required minimum distribution (RMD). This strategy is only available to taxpayers over age […]

Consider These Tax-Deductible Commuting Expenses

If you’re self-employed and have resumed work related driving, you may be entitled to deduct some vehicle expenses. Squeeze every last deductible dime out of your business travel. Keep detailed records to back up your claims. For example: Short stops. It may be convenient for you to visit a client on the way tinto work […]

Step Forward to Receive Charitable Deductions for Good Deeds

You can’t deduct the cost of the time and effort you spend on behalf of charity. But that doesn’t mean your good deeds will go for tax naught. Track your out-of-pocket costs. Even though you can’t deduct the value of your endeavors, itemizers can write off actual expenses associated with charitable activities. Furthermore, you don’t […]

4 Ways to Save on Cybersecurity Costs

What’s the biggest threat to your small business? You can choose from several possibilities, but the specter of cyberattacks should be high on your list. Install cybersecurity measures to protect your business. Generally, these costs can be deducted under applicable federal income tax rules. Here are four common examples of write-offs that may be available […]

Business Start Up Expenses

Expenses incurred before a business commences aren’t deductible, an appeals court confirms in this case in which an inventor deducted costs for a venture formed to manufacture and market a device to enhance television viewing. Although time and money were spent developing the device, business hadn’t yet begun. The venture was still in the premanufacturing […]

Lock in Home Sale Gain Exclusion

The home sale gain exclusion might be the “biggest and best” federal income tax break on the books. If you qualify, you can pocket up either a quarter or a half million dollars of profit tax free from the sale of your home – no strings attached. Potential problem: The seemingly generous home sale exclusion […]

Timing is Everything

When should you start taking Social Security benefits? It depends. You’re entitled to receive 100% of the benefits based on earnings history at full retirement age (FRA). FRA ranges from age 66 for folks who reach that age this year to age 67 for those born after 1959. But you can elect to begin taking […]

Could a Tax Torpedo Hit You?

If you’re retiring soon and will be receiving Social Security benefits, or are already retired, you might be hit with an unexpected tax whammy when you file your personal tax return. Watch out for the “tax torpedo.” This is the name given to the increase in our top marginal tax rate under the complex calculation […]

Seize 5 New Tax Law Breaks

The new American Rescue Plan (ARP) Act provides more pandemic relief to beleaguered taxpayers. Below are five tax moves for individuals under the new law. Collect economic stimulus payments. Previously, Congress authorized payments of up to $1,200 and then $600 per person. On this go-round, the payments are larger, but the dollar amount is phased […]

New Child Tax Credit

Here is some information on the new advance monthly payments of the child tax credit. It requires the IRS to make advance payments of the credit each month to qualifying families. The advance payments will account for half of a family’s 2021 child tax credit. The IRS will issue these monthly payments to eligible families […]