Adam’s Tax Blog
Note: Tax advice, articles, and content contained on this site are intended for informational and educational purposes only. They are not a substitute for professional advice. Tax matters are can be extremely complex and vary greatly for each individual or company. Please click here to read our complete disclosure and disclaimer for the information presented on this site.
Intangible Assets: How Must the Costs Incurred Be Capitalized?
Most businesses have at least some intangible assets. The tax treatment of these assets can be complex. What makes intangibles so complicated? IRS regulations require the capitalization of costs to: Acquire or create an intangible asset, Create or enhance a separate,...
Strategies for Investors to Cut Taxes as Year-End Approaches
Overall the stock market has been down during 2022 but there have been some bright spots. As year-end approaches, consider some moves to make the best tax use of paper losses and actual losses from your stock market investments. Tax rates on sales Individuals are...
Year-End Giving to Charity or Loved Ones
The holiday season is here and many people plan to donate to their favorite charities or give money or assets to their loved ones before the end of the year. Here are the basic tax rules involved in these transactions. Donating to charity In 2022, in order to receive...
How Savings Bonds Are Taxed
Many people have savings bonds that were purchased many years ago. Perhaps they were given to your children as gifts or maybe you bought them yourself. You may be wondering how the interest you earn is taxed. And what action do you need to take to ensure there’s no...
Computer Software Costs: How Does Your Business Deduct Them?
Today, most businesses buy or lease computer software to use in their operations. Or perhaps your business develops computer software to use in your products or services or sells or leases software to others. In any of these situations, you should be aware of the...
Adopting a Child? Bring Home a Tax Break Too
Two tax benefits are available to offset the expenses of adopting a child. In 2022, adoptive parents may be able to claim a credit against their federal tax for up to $14,890 of “qualified adoption expenses” for each child. This will increase to $15,950 in 2023....
2023 Limits for Businesses that Have HSAs or Want to Establish Them
Business owners don’t need to be reminded the cost of employee health care benefits keeps going up. One way to provide some of these benefits is through an employer-sponsored Health Savings Account (HSA). For eligible individuals, an HSA offers a tax-advantaged way to...
How Inflation Will Affect Your 2022 and 2023 Tax Bills
The effects of inflation are all around us. You’re probably paying more for gas, food, health care and other expenses than you were last year. Are you wondering how high inflation will affect your federal income tax bill for 2023? The IRS recently announced next...
Inflation Means You and Your Employees Can Save More for Retirement in 2023
How much can you and your employees contribute to your 401(k)s or other retirement plans next year? In Notice 2022-55, the IRS recently announced cost-of-living adjustments that apply to the dollar limitations for pensions and other qualified retirement plans for...
You May Be Liable for “Nanny Tax” for all Types of Domestic Workers
You’ve probably heard of the “nanny tax.” But it may apply to you even if you don’t employ a nanny. Hiring a house cleaner, gardener, or other household employee (who isn’t an independent contractor) may make you liable for federal income and other taxes. You may also...
Employers: In 2023, the Social Security Wage Base Is Going Up
The Social Security Administration recently announced the wage base for computing Social Security tax will increase to $160,200 for 2023 (up from $147,000 for 2022). Wages and self-employment income above this threshold aren’t subject to Social Security tax. Basics...
Plan Now to Make Tax-Smart Year-End Gifts to Loved Ones
Do you typically feel generous at year end? Taxpayers can transfer substantial amounts free of gift taxes to their children or other recipients each year through the proper use of the annual exclusion. The exclusion amount is adjusted for inflation annually, and for...