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!
Thinking About Converting Your Home Into a Rental Property?
In some cases, homeowners decide to move to new residences, but keep their present homes and rent them out. If you’re thinking of doing this, you’re probably aware of the financial risks and rewards. However, you also should know that renting out your home carries potential tax benefits and pitfalls.
Keep Reading this post - Thinking About Converting Your Home Into a Rental Property?
Selling Mutual Fund Shares: What are the Tax Implications?
If you’re an investor in mutual funds or you’re interested in putting some money into them, you’re not alone. According to the Investment Company Institute, a survey found 58.7 million households owned mutual funds in mid-2020. But despite their popularity, the tax rules involved in selling mutual fund shares can be complex.
Keep Reading this post - Selling Mutual Fund Shares: What are the Tax Implications?
The Tax Rules of Renting Out a Vacation Property
Summer is just around the corner. If you’re fortunate enough to own a vacation home, you may wonder about the tax consequences of renting it out for part of the year.
Keep Reading this post - The Tax Rules of Renting Out a Vacation Property
Tax Issues to Assess When Converting From a C Corporation to an S Corporation
Operating as an S corporation may help reduce federal employment taxes for small businesses in the right circumstances. Although S corporations may provide tax advantages over C corporations, there are some potentially costly tax issues that you should assess before making a decision to switch.
Keep Reading this post - Tax Issues to Assess When Converting From a C Corporation to an S Corporation
Subscribe to Tax Insights
Received the latest Tax Insights post, delivered directly to your inbox. New posts are published each week.Subscribe Now