Tag: tax

While the value of virtual currency continues to fluctuate, the IRS’s interest in it has only increased. In 2021, for example, the agency launched Operation Hidden Treasure to root out taxpayers who don’t report income from cryptocurrency transactions on their federal income tax returns. Moreover, the Inflation Reduction Act of 2022, allocated $80 billion to the IRS, most of it designated for enforcement activities. However, the Fiscal Responsibility Act, enacted in May 2023, will claw back $21.39 billion of that amount by the end… Read more ›

Filing for divorce can be a chaotic and emotional time. In this period, valuable information could be glossed over, and key financial details can be missed. To ensure control over the divorce proceedings, you will want to collect all your financial documents and send them to an experienced financial advisor before you file. Before we tell you the financial documents you will need for your divorce proceedings, there are some general rules for collecting information: Now that you know some… Read more ›

The Inflation Reduction Act (IRA) extended and expanded the Section 30D Clean Vehicle (CV) Credit, previously known as the Electric Vehicle (EV) Credit. The credit now covers “clean vehicles,” which include plug-in hybrids, hydrogen fuel cell cars and EVs. On April 17, 2023, the IRS will publish proposed regulations to clarify how a CV can qualify for the credit. The proposed regs effectively limit the number of currently available models that qualify, due to strict sourcing requirements that will apply to CVs that buyers… Read more ›

The U.S. Supreme Court recently weighed in on an issue in the Bank Secrecy Act (BSA) that has split two federal courts of appeal. The 5-4 ruling in Bittner v. U.S. is welcome news for U.S. residents who “non-willfully” violate the law’s requirements for the reporting of certain foreign bank and financial accounts on what’s generally known as an FBAR. FBAR stands for the Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts. FBAR Reporting Requirement The… Read more ›

Debtors typically experience a feeling of relief when a creditor agrees to provide debt forgiveness. But that feeling often is replaced by shock and confusion when they learn they owe taxes on so-called “cancellation of debt” (COD) income. Read on to learn the tax rules for COD income and how they might affect your tax situation. General Rule of Debt Forgiveness Taxes The IRS considers your debt canceled if it’s forgiven or discharged for less than the full amount you owe…. Read more ›

Here’s a tax break you might not have considered: Your business could be eligible for a tax credit for money you spend to meet the requirements of the Americans with Disabilities Act. The law requires companies with 15 or more employees to make reasonable accommodations in the workplace for disabled employees. (Reasonable accommodations must be made on a case-by-case basis and are not required when the cost would cause an undue hardship.) Eligible small businesses can claim a credit equal… Read more ›

Young adults who start their careers weighed down by college debt have a tough time buying a home or maxing out a retirement plan. That’s why, in 1996, Congress added Section 529 to the Internal Revenue Code. It created a new tax-advantaged college saving vehicle. More than two decades later, “529 plans” now collectively hold around $320 billion in assets.A lesser-known alternative, with its own set of pros and cons, is the custodial Roth IRA. Even if you’ve already started… Read more ›

If your not-for-profit focuses most of its fundraising energy on donors who can contribute to your mission and programs now, you may have neglected legacy gifts. Such gifts represent a portion of wealthy donors’ estates that go to your organization on their death. Legacy gifts can help position your nonprofit for sustained growth well into the future. Let’s take a closer look at the hows and the whys. Mechanics of Giving The vast majority of legacy gifts are made through… Read more ›

Business borrowers aren’t just facing higher interest rates today. The terms of new loans have also become more restrictive. Nearly a quarter of senior loan officers reported tighter standards for commercial and industrial loans in the Federal Reserve’s second-quarter survey on bank lending practices. As banks rein in their lending practices, it’s important for business owners to put their best foot forward when they apply for credit. Here’s how to position your business in the best possible light on a… Read more ›

Health Savings Accounts (HSAs) are a popular way to help finance the ever-increasing costs of medical care. They essentially work like this: Individuals and businesses buy less expensive health insurance policies with high deductibles. To qualify in 2022, participants must be enrolled in plans that require them to pay at least the first $1,400 of medical expenses, $2,800 for a family before the insurance begins to pick up the tab (unchanged from 2021). The high deductible health plan is then… Read more ›