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Standard Mileage Rate Increased

2022 – 07/15 To help defray the sky-high cost of gas, taxpayers who use their vehicles for business saw the standard mileage rate rise on July 1, from 58.5 cents to 62.5 cents. But you could lose that tax benefit if you neglect to keep good records as you go. In one case, a consultant…

Electric Vehicle Credits

2022 – 07/14 Toyota is the latest auto manufacturer to sell enough plug-in electric vehicles (EVs) to trigger a gradual phaseout of federal tax incentives for specified models sold in the U.S., joining Tesla and General Motors. Toyota reported that it has sold more than 200,000 EVs, meaning that its federal EV credits will begin…

Weathering the storm of rising inflation

2022 – 07/13 Like a slowly gathering storm, inflation has gone from dark clouds on the horizon to a noticeable downpour on both the U.S. and global economies. Is it time for business owners to panic? Not at all. As of this writing, a full-blown recession is possible but not an absolute certainty. And the…

Portability Election Deadline Extended

2022 – 07/12 The IRS has updated the procedure for obtaining an extension to elect “portability.” Making a portability election allows a surviving spouse to apply a deceased spouse’s unused federal gift and estate tax exemption amount toward his or her own transfers during life or at death. To secure these benefits, however, the deceased…

Residential Real Estate Tax Incentives

2022 – 07/12 There are several tax incentives for owning residential real estate. For example, eligible taxpayers can claim home mortgage interest deductions and property tax deductions. If eligible, they can also exclude from gross income up to $250,000 ($500,000 for married couples filing jointly) of gain realized on the sale of a principal residence….

The tax obligations if your business closes its doors

2022 – 07/11 Sadly, many businesses have been forced to shut down recently due to the pandemic and the economy. If this is your situation, we can assist you, including taking care of the various tax responsibilities that must be met. Of course, a business must file a final income tax return and some other…

IRS extends relief for physical presence signature requirement

2022 – 07/06 Under IRS regulations regarding electronic consents and elections, if a signature must be witnessed by a retirement plan representative or notary public, it must be witnessed “in the physical presence” of the representative or notary — unless guidance has provided an alternative procedure. Recently, in Notice 2022-27, the IRS extended, through the…

Divorce and Taxes

2022 – 07/05 If you’re getting divorced, you have one more thing to think about: taxes. When you receive a final divorce decree, update your withholding by filing a new W-4 with your employer. If you receive alimony, you may need to increase withholding or make estimated payments. However, if your divorce was finalized after…

How do taxes factor into an M&A transaction?

2022 – 07/05 Although merger and acquisition activity has been down in 2022, according to various reports, there are still companies being bought and sold. If your business is considering merging with or acquiring another business, it’s important to understand how the transaction will be taxed under current law. Stocks vs. assets From a tax…

Is your cloud provider still meeting your company’s needs?

2022 – 06/29 Like many businesses, yours has probably jumped aboard the cloud computing bandwagon … or “skywagon” as the case may be. How’s that going? Some business owners pay little to no attention to a cloud provider once the service is in place. Others realize, perhaps years later, that they’re not particularly satisfied with…

Voice Bots at the IRS

2022 – 06/28 The next time you contact the IRS by phone, it’s likely that you’ll end up speaking to a voice bot. The IRS launched “authenticated” voice bots this year, and they’re now operating at 100% capacity. The bots, which are powered by artificial intelligence and currently available in English and Spanish, are an…

Summer Jobs and Taxes

2022 – 06/27 Summer is officially here, and for some taxpayers, that might bring new tax implications. Newlyweds should contact several agencies to update their information. Parents who send their dependent kids (under age 13) to summer day camp may be able to deduct it as a work-related expense. Taxpayers who work summer or part-time…

Backup Withholding

2022 – 06/24 Businesses take note: You may be required to withhold 24% of certain payments to individuals if they don’t provide you with their legal names and taxpayer identification numbers (TINs) or the IRS notifies you that a payee’s TIN doesn’t match its records. Types of payments subject to backup withholding include interest, dividends,…

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