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Posts by Tax Department

IRS Makes Face-to-Face Visits to Taxpayers with Tax Compliance Issues

The IRS has announced that they will begin visiting taxpayers with ongoing tax compliance issues. This campaign will focus on areas where there have been a limited number of IRS officers, with Wisconsin, Arkansas, and Texas among the initial areas to be targeted. IRS revenue officers will make unannounced visits to taxpayers who have been…

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Charitable IRA rollover eases tax pain of RMDs

One downside of contributing to a traditional IRA is that, once you reach age 70½, you must begin taking required minimum distributions (RMDs) — and pay taxes on those distributions — whether you need the money or not. But if you’re charitably inclined, you can use a qualified charitable distribution (QCD) to avoid taxes on…

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Kiddie tax: New hazards, new opportunities

Despite its name, the “kiddie tax” is far from child’s play. And a change made by the Tax Cuts and Jobs Act (TCJA) puts some adult teeth into the tax. Now, children with unearned income may find themselves in a tax bracket higher than that of their parents. At the same time, the TCJA creates…

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Taxable vs. tax-advantaged: Where to hold investments

When investing for retirement or other long-term goals, people usually prefer tax-advantaged accounts, such as IRAs, 401(k)s or 403(b)s. Certain assets are well suited to these accounts, but it may make more sense to hold other investments in taxable accounts. Know the rules Some investments, such as fast-growing stocks, can generate substantial capital gains. These…

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Business Loss Deductions

Excess business loss rule may be unfavorable to you Sole proprietorships and pass-through entity structures, which include partnerships, S corporations and certain limited liability companies (LLCs), provide owners with some valuable tax benefits, such as avoidance of double taxation and the potential ability to deduct losses from the business on their individual tax returns. But…

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Did you repair your business property or improve it?

Repairs to tangible property, such as buildings, machinery, equipment or vehicles, can provide businesses a valuable current tax deduction — as long as the so-called repairs weren’t actually “improvements.” The costs of incidental repairs and maintenance can be immediately expensed and deducted on the current year’s income tax return. But costs incurred to improve tangible…

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Do you need to file gift tax returns?
Avoid these common mistakes

For 2019, the lifetime gift and estate tax exemption has reached a whopping $11.40 million ($22.80 million for married couples). As a result, few people will be subject to federal gift taxes. If your wealth is well within the exemption amount, does that mean there’s no need to file gift tax returns? Not necessarily. There…

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The TCJA limit on interest expense deductions
Does it affect your business?

The Tax Cuts and Jobs Act (TCJA) introduced a variety of tax benefits for businesses. Among other things, it slashed corporate income tax rates, temporarily reduced individual rates and established a new 20% deduction for certain pass-through income. At the same time, the act placed limits on several tax breaks, including the amount of interest…

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WOTC Now Available in Year of Certification

The Work Opportunity Tax Credit (WOTC) is available to employers who hire and pay qualified wages to individuals who are certified members of targeted groups.  The employer must receive certification from the designated local agency in order to claim the credit.  The WOTC has been available only in the year the wages were paid or…

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