New Year, New Form W-4

The new year is upon us, and everyone is hopeful that 2020 will bring change for the better. The IRS has made a significant change that many of us will notice – a redesigned 2020 Form W-4. The W-4 is the familiar form used by employees to help employers calculate the correct amount of Federal…

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2019 Tax Law Change Update

Highlights of spending package’s tax law changes The federal government spending package titled the Further Consolidated Appropriations Act, 2020, does more than just fund the government. It extends certain income tax provisions that had already expired or that were due to expire at the end of 2019. The agreement on the spending package also includes…

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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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