The IRS issued a final ruling explaining how to qualify for a real estate income safe harbor to receive the Qualified Business Income (QBI) deduction. You will need to make this safe harbor determination annually. PAY NOW The alternative minimum tax (AMT), will see its exemption amount rise in 2020 to $72,900 and begin to … Read more
QUESTION: I made a major calculation error in favor of the IRS on last years tax return. Can I file an amended return? ANSWER: You can file an amended return for individual taxes if you make a mistake in either your favor or the IRSs up to three years after the filing date (with extensions) … Read more
Congress has recently made significant changes to retirement plan rules. Previously, traditional IRA contributions werent allowed once you turned 70 ½. Starting in 2020, the new rules allow an individual of any age to make contributions to a traditional IRA, if, he or she has compensation. The new law also increases the age required minimum … Read more
Congress passed last-minute legislation that might favorably affect your tax situation. Many beneficial tax breaks expired at the end of 2017. Recent legislation has retroactively extended over 30 tax provisions, generally through 2020. You might be able to apply some of these provisions to your already filed 2018 tax return. We can work with … Read more
179D is back! Congress recently extended the Section 179D Energy-Efficient Commercial Building Deduction through December 31, 2020, and retroactive for 2018 and 2019. It was previously effective for buildings placed in service through December 31, 2017. Since 2005, Section 179D has provided a tax incentive for the installation of energy-efficient components into commercial buildings with … Read more
If you own a sole proprietorship or a company and you file taxes on a calendar basis, you will want to take all of the deductions to which you are legally entitled. Here are a few: TAKE IT ALL If your business made a qualified large purchase in 2019 and has unpredictable annual income, you … Read more
With time left before the April filing deadline, it makes good financial sense to recheck for dont miss deductions and credits that can lower your tax bill. One caveat: You will have to choose between taking the standard deduction and itemizing individual deductions. BIG BREAKS One big break is the adoption tax credit, which is … Read more
Miriam owns a bakery and her business recently received a tax audit letter from the IRS. How far back will the Internal Revenue Service want to examine her tax returns? What will she need to do to resolve her tax situation? The IRS should spell everything out for Miriam in the letter, but she should … Read more
Throughout these news articles posted on our site, well share numbers you need to know for tax year 2019 and offer a sampling of whats ahead for 2020. STANDARD DEDUCTION The Tax Cuts and Jobs Act that became law in 2017, increased the standard deduction significantly. If you take the standard deduction, you can reduce … Read more
QUESTION: Im getting serious-sounding calls from someone who claims to represent the IRS, insisting my social security number is compromised. Should I trust this? ANSWER: No, no and no! The IRS will typically send you a letter, and usually only after they receive a suspicious tax return filed with your social security number or after … Read more