Category: Deductions

  • Strategies for Investors to Cut Taxes as Year-End Approaches

    Strategies for Investors to Cut Taxes as Year-End Approaches

    The overall stock market has been down during 2022 but there have been some bright spots. As year-end approaches, consider making 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 subject to tax at a rate as high as…

  • Businesses Can Show Appreciation — and Gain Tax Breaks — with Holiday Gifts and Parties

    Businesses Can Show Appreciation — and Gain Tax Breaks — with Holiday Gifts and Parties

    With Thanksgiving just around the corner, the holiday season will soon be here. At this time of year, your business may want to show its gratitude to employees and customers by giving them gifts or hosting holiday parties again after a year of forgoing them due to the pandemic. It’s a good time to brush…

  • The Tax Score of Winning

    The Tax Score of Winning

    Studies have found that more people are engaging in online gambling and sports betting since the pandemic began. And there are still more traditional ways to gamble and play the lottery. If you’re lucky enough to win, be aware that tax consequences go along with your good fortune. Review the tax rules Whether you win…

  • Seniors May Be Able to Write Off Medicare Premiums on Their Tax Returns

    Seniors May Be Able to Write Off Medicare Premiums on Their Tax Returns

    Are you age 65 and older, and do you have 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 side: You may…

  • Working in the Gig Economy Results in Tax Obligations

    Working in the Gig Economy Results in Tax Obligations

    Before the COVID-19 pandemic hit, the number of people engaged in the “gig” or sharing economy had been growing, according to several reports. And reductions in working hours during the pandemic have caused even more people to turn to gig work to make up lost income. There are tax consequences for the people who perform…

  • Small Businesses: Cash in on Depreciation Tax Savers

    Small Businesses: Cash in on Depreciation Tax Savers

    As we approach the end of the year, it’s a good time to think about whether your business needs to buy business equipment and other depreciable property. If so, you may benefit from the Section 179 depreciation tax deduction for business property. The election provides a tax windfall to businesses, enabling them to claim immediate…

  • ESOPs Offer Businesses a Variety of Potential Benefits

    ESOPs Offer Businesses a Variety of Potential Benefits

    Wouldn’t it be great if your employees worked as if they owned the company? An employee stock ownership plan (ESOP) could make this a reality. Under an ESOP, employee participants take part ownership of the business through a retirement savings arrangement. Meanwhile, the business and its existing owner(s) can benefit from some tax breaks, an…

  • IRS Announces Per Diem Rates for Business Travel

    IRS Announces Per Diem Rates for Business Travel

    In Notice 2020-71, the IRS announced per diem rates that can be used to substantiate the amount of business expenses incurred for travel away from home on or after October 1, 2020. Employers using these rates to set per diem allowances can treat the amount of certain categories of travel expenses as substantiated without requiring…