Adam’s Tax Blog

The IRS recently announced various 2024 inflation-adjusted federal tax amounts affecting individual taxpayers. Most of the federal income tax rate bracket thresholds are about 5.4% higher than for 2023. This means you can generally have about 5.4% more income next...

The IRS recently announced various inflation-adjusted federal income tax amounts. Here’s a rundown of the amounts most likely to affect small businesses and their owners. Rates and brackets If you run your business as a sole proprietorship or pass-through business...

If you’re facing a serious cash shortfall, one possible solution is to take an early withdrawal from your traditional IRA. That means one before you’ve reached age 59½. For this purpose, traditional IRAs include simplified employee pension (SEP-IRA) and SIMPLE-IRA...

Is your business depreciating the entire cost of constructing the building that houses your enterprise over 30 years? If so, you should consider a cost segregation study. It may allow you to accelerate depreciation deductions on certain items, thereby reducing taxes...

Restricted stock awards are a popular way for companies to offer equity-oriented executive compensation. Some businesses offer them instead of stock option awards. The reason: Options can lose most or all of their value if the price of the underlying stock takes a...

If you’re planning to start a business or thinking about changing your business entity, you need to determine what will work best for you. Should you operate as a C corporation or a pass-through entity such as a sole-proprietorship, partnership, limited liability...

If you’re fortunate to have an employer offering a 401(k) plan, and you don’t contribute to it, you may wonder if you should participate. Generally speaking, it’s a great tax and retirement saving deal! These plans help an employee accumulate a retirement nest egg on...

Perhaps you’ve been in this situation before: You have a financial emergency and need to get your hands on some cash. You consider taking money out of a traditional IRA or 401(k) account but if you’re under age 59½, such distributions are not only taxable but also are...

Are your employees traveling for business and frustrated about documenting expenses? Or perhaps you’re annoyed at the time and energy you put in to reviewing business travel expenses. There may be a way to simplify the reimbursement of these expenses. In Notice...

The Social Security Administration recently announced the wage base for computing Social Security tax will increase to $168,600 for 2024 (up from $160,200 for 2023). Wages and self-employment income above this threshold aren’t subject to Social Security tax. Basic...

With the rising cost of college, families are in search of scholarships to help pay the bills. If your child is awarded a scholarship, you may wonder about how it could affect your family’s taxes. Good news: Scholarships (and fellowships) are generally tax-free for...

Do you use an automobile in your trade or business? If so, you might be wondering how depreciation tax deductions are determined. The rules are complicated, and special limitations applying to vehicles classified as passenger autos (which include many pickups and...