Donate Appreciated Stock for Twice the Tax Benefits
A tried-and-true year’s end tax strategy is to make charitable donations. You can claim a charitable deduction as long as you itemize and your gift qualifies. But did you know that you can enjoy an additional tax benefit if you donate long-term appreciated stock instead of cash? 2 benefits from 1 gift Appreciated publicly traded stock you’ve held more than one year is long-term capital gains property. If you donate it to a qualified charity, you may be able to enjoy two tax benefits: 1. If you itemize deductions, you can claim a charitable deduction equal to the stock’s fair market value,...
Read MoreResearch Credit Available to Some Businesses for the First Time
The federal tax credit for “increasing research activities” didn’t change under the Tax Cut and Jobs Act (TCJA), but several TCJA provisions have an indirect impact on the credit. As a result, the research credit may be available to some businesses for the first time. AMT reform Previously, corporations subject to alternative minimum tax (AMT) couldn’t offset the research credit against their AMT liability. This erased the benefits of the credit (although they could carry unused research credits forward for up to 20 years and use them in non-AMT years). By eliminating corporate AMT for tax...
Read MoreCould “Bunching” Medical Expenses Into 2018 Save You Tax?
If you itemize deductions, and have enough expenses to exceed the applicable floor for deductibility, some of your medical expenses may be tax deductible. You may also be able to time controllable medical expenses to your tax advantage with proper planning. The Tax Cuts and Jobs Act (TCJA) could make bunching such expenses into 2018 beneficial for some taxpayers. At the same time, because of the TCJA’s increase to the standard deduction, certain taxpayers who’ve benefited from the deduction in previous years might no longer benefit. The changes Various limits apply to most tax deductions,...
Read MoreConsider All the Tax Consequences Before Making Gifts to Loved Ones
Whether it’s to reduce the size of their taxable estate, to help out family members, or simply to see their loved ones enjoy the gifts; many people choose to pass assets to the next generation during life. If lifetime gifts are something you’re considering, be aware that which assets you give can produce substantially different tax consequences. Multiple types of taxes Federal gift and estate taxes generally apply at a rate of 40% to transfers in excess of your available gift and estate tax exemption. Under the Tax Cuts and Jobs Act, the exemption has approximately doubled through...
Read MoreNow’s the Time to Review Your Business Expenses
Now that we’re in the last quarter of the year, it’s a good idea to review the deductibility of your business’s expenses. It’s also a good time to consider whether your business would benefit from accelerating certain expenses into this year. Be sure to evaluate the impact of the Tax Cuts and Jobs Act (TCJA), which reduces or eliminates many deductions. In some cases, it may be necessary or desirable to change your expense and reimbursement policies. What’s deductible, anyway? There’s no master list of deductible business expenses in the Internal Revenue Code (IRC). Although some deductions...
Read MoreIRS Tax Payment Plans Make It Easier to Face Your Tax Bill
If you should find yourself in a position where you owe the IRS a good deal of money – don’t panic. You’re not alone. There are a lot of people who face the same situation. It could be because they didn’t have the cash available to pay the bill at the time, forgot to file tax returns in past years, or simply filed incorrectly. Luckily, the IRS has a simple way for you to pay your tax debt through their installment agreement plans. These IRS tax payment plans can help you avoid any unnecessary penalties and interest. The first step before requesting a payment plan from the IRS is to file all...
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