The heat is on…and so are the tax savings

The IRS has advised taxpayers that making specific energy-efficient updates to their homes could qualify them for home energy credits. This guidance comes under the expanded provisions of the Inflation Reduction Act of 2022, aimed at encouraging energy-efficient upgrades. Big deduction Taxpayers who installed qualifying energy-efficient improvements such as exterior doors, windows, skylights, insulation, and …
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C Corp Cash: Dealing With the Tax Implications

C corporation owners often need to take cash out of the business to pay personal expenses or to shield excess cash from creditors. Paying dividends is one way to withdraw cash from the business, but it generally has some significant downsides. Fortunately, additional options may be available. Here’s what you need to know: Problems with Dividends …
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Marriage Penalty or Marriage Bonus? It Depends

Print this page   A couple’s tax situation changes when they get married — for better or worse. Here are the most important things to know if you recently tied the knot or you’re planning to get married later this year. Timing Counts Your marital status as of December 31 determines your tax filing options for …
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Understanding the percentage of completion accounting method

A viable option when when construction projects are delayed or stopped In the complex and sometimes chaotic world of long-term construction projects, many contractors find themselves struggling to accurately align the revenue coming in with the expenses being paid out. This is where the percentage of completion method of accounting often comes in handy. When executed …
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Vacation rentals: Avoid tax pitfalls, max out the benefits

Vacation homeowners need to carefully observe all the federal income tax rules for rentals. With some astute tax planning before the summer rental season begins, you can sidestep any potential tax pitfalls — and maximize the tax benefits. The Basics Many vacation homeowners rent out the property at least part of the year to defray …
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Get ready for the 2023 gift tax return deadline

Did you make large gifts to your children, grandchildren or others last year? If so, it’s important to determine if you’re required to file a 2023 gift tax return. In some cases, it might be beneficial to file one (IRS Form 709) — even if it’s not required. Who must file? The annual gift tax …
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Weighing business deductions as tax season arrives

As tax season approaches, businesses across various industries are gearing up to minimize their tax liabilities. Amid this pursuit, an essential avenue for potential savings lies in identifying deductible business expenses. However, not every business expense is eligible for deduction. Here’s a breakdown of what businesses need to know about claiming, or foregoing, deductible business …
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By the numbers: Charting key federal tax changes for 2024

It’s crucial to stay abreast of the latest updates shaping the tax landscape for 2024. From adjustments in Social Security and Medicare tax wage bases to changes in Individual Retirement Account (IRA) contribution limits, the terrain is undergoing shifts that can significantly impact individual planning strategies. Below is a list of key updates ranging from …
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Young adult retirement savings: Traditional vs. Roth IRAs

As more than half of 16-to-24-year-olds are gainfully employed, according to the Bureau of Labor Statistics, it’s crucial to guide the younger generation toward financial responsibility and long-term planning. While a job provides valuable lessons, why not take it a step further and encourage them to start saving for retirement? Young adults with earned income …
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How to properly deal with common payroll tax questions

Navigating the complex landscape of payroll tax rules poses a formidable challenge for businesses, particularly when hiring new employees or when existing employees experience personal changes affecting their tax status. Such circumstances often raise concerns about recordkeeping requirements and withholding obligations. We delve into some of the most common scenarios that have recently drawn the …
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