Batley CPA Tax & Business Alert October 2022
What are the tax implications when a taxpayer who owns a vacation home rents it out? The answer depends on various factors, such as the amount of time rented out and the number of days used by the owner. The calculation of taxable income can be complex. This article explains.
Batley CPA Tax & Business Alert September 2022
Long-term care — including nursing home care — is expensive. Generally, tax issues aren’t top of mind when someone enters a nursing home. But for those who pay the bills, there may be tax breaks that help offset the cost, such as the ability to deduct expenses that exceed a certain level. This article and a sidebar provide details.
Batley CPA Tax & Business Alert August 2022
Employer-provided life insurance can be a great benefit, with the cost of part of it excluded from an employee’s taxable income. Participating employees need to be aware that this exclusion only applies to the first $50,000 in coverage, and the employer-paid cost of the excess will be reported on the employee’s Form W-2. This is true even if the life insurance is never received. A sidebar reveals how the value of that taxable income is determined.
Batley CPA Tax & Business Alert July 2022
Business owners may be wondering whether alternative energy technologies can help them manage their business energy costs. A valuable federal income tax benefit — in the form of a business energy credit — applies to the acquisition of many types of alternative energy property. The credit is intended primarily for business users of alternative energy. This article provides details.
Batley CPA Tax & Business Alert June 2022
Many taxpayers incur significant investment-related expenses, which might include payment for financial service subscriptions, clerical support and home office maintenance. Under current tax law, these expenses aren’t deductible through 2025 if they’re considered investment expenses to produce income. If they’re considered trade or business expenses, however, they are deductible. This article explains the difference between a trader and an investor. A brief sidebar describes a court case to illuminate that difference.
Batley CPA Tax & Business Alert May 2022
Business owners may be able to hire their minor children this summer and get tax breaks and other nontax benefits. While owners save on payroll taxes and lower some costs, the kids also benefit. They can gain on-the-job experience, learn practical skills and at the same time learn how to manage money. A sidebar notes that earned income can help young workers get an early start on funding a retirement plan.
Batley CPA Tax & Business Alert April 2022
There’s a harsh tax penalty that business owners could have to pay personally if they own or manage a business with employees. It’s called the Trust Fund Recovery Penalty and it applies to the Social Security and income taxes required to be withheld by a business from the wages of its employees. This article looks at the risk and explains how business owners, managers and other involved parties can avoid incurring the penalty.
Batley CPA Tax & Business Alert March 2022
It may not be too late to lower your 2021 tax bill. Qualified individuals can still make deductible contributions to traditional IRAs until the tax filing date of April 18, 2022, and claim the deduction for 2021. This article provides details, including alternate strategies.
Batley CPA Tax & Business Alert February 2022
They say the early bird gets the worm. Early federal income tax filers may get a couple worms. This article discusses two benefits to filing early. A sidebar addresses the idea of not filing a 2021 tax return until one’s delayed 2020 tax refund is issued.
Batley CPA Tax & Business Alert January 2022
Because of the COVID-19 pandemic and other reasons, job upheaval has become common among Americans. If you’ll soon be changing employers, you should handle your retirement plan carefully. This article outlines the four basic options for plan rollovers.
