Seek Tax Aid for Medical Dependent

Suppose you help support an elderly parent or another qualifying relative. Under the Tax Cuts and Jobs Act (TCJA), you cannot claim a dependency exemption deduction for a dependent relative for 2018-2025. But keep reading. Pay your dependent qualifying relative’s medical expenses. You can add those expenses to your own medical expenses for the year. […]

Reap Tax Windfall From Your Home

As Dorothy said in the classic film The Wizard of Oz, “there’s no place like home.” Don’t sleep on the tax breaks associated with home ownership. Not only can you benefit while you are living there, you can reap a tax windfall when you finally sell the place. Here are six ways to go over […]

Juice Up Your Company’s FSA Plan

Due to COVID-19 pandemic, many employees have incurred unexpected health and dependent care costs that go far beyond the usual run-of-the-mill expenses. Give your employees more flexibility. Amend your company’s flexible spending account (FSA) plan to take advantage of liberalized rules. The IRS has just issued new guidelines for FSAs in 2020. (IRS Notice 2020-29, […]

Salvage Tax Break for Property Damage

Does your business have property that has been damaged recently by a natural disaster or vandalism? You don’t have to wait until your company fields its 2020 tax return to obtain tax relief. Amend your company’s 2019 tax return. Under a special tax code provision you can elect to claim a casualty loss for business […]

6 Steps to Contest Property Taxes

Do you pay an exorbitant amount of property tax on your home? You don’t have to accept the status quo. First, find out if your city, town, or county is providing relief due to the COVID-19 outbreak. Some have already extended deadlines or made other adjustments. Others are expected to follow. But that’s not the […]

The American Opportunity Tax Credit

You should know the rules if planning to claim the American Opportunity Tax Credit. It’s worth up to $2,500 per student for each of the first four years of college. The break is based on 100% of the first $2,000 spent on qualifying college expenses and 25% of the next $2,000. For 2019, it begins […]

Does your rental property qualify for the QBI deduction?

Have income from rental properties you own? You may be eligible to take a juicy tax break: The 20% qualified business income deduction. Subject to a litany of rules, self-employed individuals and owners of S corporations, partnerships and LLCs can write of 20% of their qualified business income. QBI is your allocable share of income […]

Opportunity zone program

IRS’s opportunity zone program is under way. It allows taxpayers to defer capital gains from the sale of business or personal property by investing the proceeds in opportunity funds to help development of low-income communities. This incentive was enacted under the new tax law, and many expect the program to be very popular. New IRS […]

How long should you keep individual tax returns?

One question we get asked a lot: How long to keep individual tax returns? You should keep your returns at least three years. As a general rule, that’s how long the Service has to question items on your return and to bill you for any additional tax. It’s also the time frame for you to […]

Can You Deduct Your Real Estate Losses?

The Service continues to eye returns that report large real estate losses…Especially those taken by taxpayers claiming to be real estate professionals. Real estate pros have to satisfy two-time tests to beat the passive activity loss rules and fully deduct their rental losses. They must spend over half of their working hours and more than […]