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.
You May Have Loads of Student Debt, but It May Be Hard to Deduct the Interest
More than 43 million students are in debt with an average of $39,351 each, according to the research group EducationData.org. If you have student loan debt, you may wonder if you can deduct the interest you pay on it. The answer is yes, subject to certain limits....
The Deductibility of Corporate Expenses Covered by Officers or Shareholders
Do you play a major role in a closely held corporation and sometimes spend your personal money on corporate expenses? These costs may wind up being nondeductible both by an officer and the corporation unless the proper steps are taken. This issue is more likely to...
There’s Currently a “Stepped-Up Basis” If You Inherit Property — but Will It Last?
If you’re planning your estate, or you’ve recently inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes. The current rules Under the current fair market value basis rules (also known as the “step-up and step-down” rules), an heir receives a...
Getting a New Business Off the Ground: How Start-Up Expenses Are Handled on Your Tax Return
Government officials are seeing a large increase in the number of new businesses being launched, despite the COVID-19 pandemic. From June 2020 through June 2021, the U.S. Census Bureau reports business applications are up 18.6%. The Bureau measures this by the number...
Who In a Small Business Can Be Hit with the “Trust Fund Recovery Penalty?”
There’s a harsh tax penalty you could be at risk for paying personally if you own or manage a business with employees. It’s called the “Trust Fund Recovery Penalty” and it applies to the Social Security and income taxes withheld by a business from its employees’...
10 Facts About the Pass-Through Deduction for Qualified Business Income
Are you eligible for the qualified business income (QBI) deduction? Here are 10 facts about this valuable tax break, referred to as the pass-through deduction, QBI deduction, or Section 199A deduction. 1. It’s available to owners of sole proprietorships, single member...
IRS Audits May Be Increasing, so Be Prepared
The IRS has released its audit statistics for the 2020 fiscal year and fewer taxpayers had their returns examined compared to prior years. But even though a small percentage of returns are being chosen for audit these days, it won’t be much consolation if yours is one...
Eligible Businesses: Claim the Employee Retention Tax Credit
The Employee Retention Tax Credit (ERTC) is a valuable tax break that was extended and modified by the American Rescue Plan Act (ARPA) in March of 2021. Here’s a rundown of the rules. Background Back in March of 2020, Congress originally enacted the ERTC as part of...
Are You a Nonworking Spouse? You May Still Be Able to Contribute to an IRA
Married couples may not be able to save as much as they need for retirement when one spouse doesn’t work outside the home if for example they need to care for children or elderly parents. In general, an IRA contribution is allowed only if a taxpayer earns...
Seniors May be Able to Write Off Medicare Premiums on Their Tax Returns
Are you age 65 and older with basic Medicare insurance? You may need to pay additional premiums to get the level of coverage you want. The premiums can be expensive, especially if you’re married and both you and your spouse are paying them. But there may be a bright...
Traveling for Business Again? What Can You Deduct?
As we continue to come out of the COVID-19 pandemic, you may be traveling for business again. Under tax law, there are a number of rules for deducting the cost of your out-of-town business travel within the United States. These rules apply if the business conducted...
Tax-Favored Ways to Build Up a College Fund
If you have a college-bound child, you may be concerned about funding future tuition and other higher education costs. So you’ll want to take maximum advantage of tax benefits to minimize your expenses. Here are some possible options. Savings bonds Series EE U.S....