Subscribe to Tax Insights
Received the latest Tax Insights post, delivered directly to your inbox. New posts are published each week.
Subscribe Now
How Do Taxes Factor Into an M&A Transaction?
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.
Keep Reading this post - How Do Taxes Factor Into an M&A Transaction?
IRA Charitable Donations: An Alternative to Taxable Required Distributions
Are you a charitably minded individual who is also taking distributions from a traditional IRA? You may want to consider the tax advantages of making a cash donation to an IRS-approved charity out of your IRA.
Keep Reading this post - IRA Charitable Donations: An Alternative to Taxable Required Distributions
Partners May Have to Report More Income on Tax Returns Than They Receive in Cash
Are you a partner in a business? You may have come across a situation that’s puzzling. In a given year, you may be taxed on more partnership income than was distributed to you from the partnership in which you’re a partner.
Is It a Good Time for a Roth Conversion?
The downturn in the stock market may have caused the value of your retirement account to decrease. But if you have a traditional IRA, this decline may provide a valuable opportunity: It may allow you to convert your traditional IRA to a Roth IRA at a lower tax cost.
Keep Reading this post - Is It a Good Time for a Roth Conversion?
Help When Needed: Apply the Research Credit Against Payroll Taxes
Here’s an interesting option if your small company or start-up business is planning to claim the research tax credit. Subject to limits, you can elect to apply all or some of any research tax credits that you earn against your payroll taxes instead of your income tax. This payroll tax election may influence some businesses to undertake or increase their research activities. On the other hand, if you’re engaged in or are planning to engage in research activities without regard to tax consequences, be aware that some tax relief could be in your future.
Keep Reading this post - Help When Needed: Apply the Research Credit Against Payroll Taxes
Caring for an Elderly Relative? You May Be Eligible for Tax Breaks
Taking care of an elderly parent or grandparent may provide more than just personal satisfaction. You could also be eligible for tax breaks. Here’s a rundown of some of them.
Keep Reading this post - Caring for an Elderly Relative? You May Be Eligible for Tax Breaks
Proposed Regs for Inherited IRAs Bring Unwelcome Surprises
Back in late 2019, the first significant legislation addressing retirement savings since 2006 became law. The Setting Every Community Up for Retirement Enhancement (SECURE) Act has resulted in many changes to retirement and estate planning strategies, but it also raised some questions. The IRS has been left to fill the gaps, most recently with the February 2022 release of proposed regulations that have left many taxpayers confused and unsure of how to proceed.
Keep Reading this post - Proposed Regs for Inherited IRAs Bring Unwelcome Surprises
Valuable Gifts to Charity May Require an Appraisal
If you donate valuable items to charity, you may be required to get an appraisal. The IRS requires donors and charitable organizations to supply certain information to prove their right to deduct charitable contributions. If you donate an item of property (or a group of similar items) worth more than $5,000, certain appraisal requirements apply.
Keep Reading this post - Valuable Gifts to Charity May Require an Appraisal
Want to Turn a Hobby into a Business? Watch Out for the Tax Rules!
Like many people, you may have dreamed of turning a hobby into a regular business. You won’t have any tax headaches if your new business is profitable. But what if the new enterprise consistently generates losses (your deductions exceed income) and you claim them on your tax return? You can generally deduct losses for expenses incurred in a bona fide business. However, the IRS may step in and say the venture is a hobby — an activity not engaged in for profit — rather than a business. Then you’ll be unable to deduct losses.
Keep Reading this post - Want to Turn a Hobby into a Business? Watch Out for the Tax Rules!