Category: Taxation-Individuals

Virginia filers who experienced a tax liability in 2021 are eligible for a one-time tax rebate. The Virginia Department of Taxation announced that qualifying single filers may receive up to $250 and joint filers may receive up to $500 for the Virginia tax rebate. The Department defines a liability as “the amount of tax you owe throughout the year minus any credits like the credit for taxes you paid to another state or the credit for low-income individuals.” Eligible taxpayers… Read more ›

The IRS recently announced that it’ll increase the standard mileage rate for qualified business driving for the second half of 2022. The adjustment reflects the soaring cost of gasoline this year. In fact, as of June 13, the nationwide average price of regular unleaded gas was $5.01 a gallon, according to the AAA Gas Prices website. This is compared with $3.08 a gallon a year ago. Beginning July 1, 2022, the standard mileage rate for business travel will be 62.5… Read more ›

Have you always wanted to buy rental property and become a landlord? As you can imagine, putting up with some tenants can be a pain in the neck. But the discomfort can be eased by the valuable tax breaks available to rental property owners. In fact, favorable tax laws are one big reason why so many fortunes have been made in real estate. Another big reason is that leveraging real estate investments with mortgages can multiply profits. But for purposes… Read more ›

The IRS’ “Where’s My Refund?” tool has been expanded to share taxpayers’ refund status to the two previous years. The IRS refund tool has provided taxpayers with the status of their refund payment during the current filing year. Now, taxpayers may also review their tax refund for the past two years according to the following details: • Information about a refund from a 2021 tax return will be available 24 hours after e-filing the return • Information about a refund… Read more ›

For 2022, the amount you can sock away into your 401(k), 403(b) and most 457 plans will rise another $1,000 to $20,500. If you’re at least 50 years of age, you can put away up to $27,000 thanks to catch-up contributions. The limit on “total additions” to those plans — that is your deferrals and employer contributions combined — rises to $61,000 in 2022 or $67,500 if you’re at least 50. While you’re contemplating how much to put into your… Read more ›

It’s difficult for many people to write off medical expenses because of the limits imposed under the tax laws. But you may qualify by including every expense allowed. Some of the qualified procedures may surprise you. For example, most insurance plans won’t cover laser eye surgery, such as radial keratotomy or “Lasik,” because they consider it a cosmetic procedure. But it generally qualifies for a medical deduction and as an expense in a flexible spending account. (The IRS used to… Read more ›

Q. When buying a vehicle to use in your business, which type is potentially eligible for 100% bonus depreciation that allows a larger first-year tax write-off? a. Compact car made in the USA b. Plug-in electric sedan c. Hybrid passenger auto d. Large sport utility vehicle (SUV) The answer is d While a compact car, an electric vehicle or a hybrid may save you money in gas and provide some nice tax breaks, a suitably heavy SUV, pickup, or van… Read more ›

The 403(b) plan is often thought of as a 401(k) plan for nonprofits. It’s probably not the only option for your not-for-profit, but it can provide certain advantages over 401(k)s. Following is a brief rundown. Generous Contribution Limits A 403(b) plan is a tax-favored qualified retirement plan set up for employees of not-for-profit organizations, including charities, hospitals, schools and government entities. As with other qualified plans, pre-tax contributions grow tax-free until withdrawals are made. Normally, employee contributions are deducted from… Read more ›

Back in late 2019, the first significant legislation addressing retirement savings since 2006 became law. The Setting Every Community Up for Retirement Enhancement (SECURE) Act has resulted in many changes to retirement and estate planning strategies, but it also raised some questions. The IRS has been left to fill the gaps, most recently with the February 2022 release of proposed regulations that have left many taxpayers confused and unsure of how to proceed. The proposed regs cover numerous topics, but… Read more ›

Mikki Obreja, senior tax manager at CBM, has been quoted in a white paper by CrossTower, a cryptocurrency exchange entitled “Cryptocurrency Donations”. Mikki addresses the impact on a donor’s long-term capital gains rate after the sale of bitcoin based on the donor’s taxable income and filing status. Click here to read the white paper. Councilor, Buchanan & Mitchell (CBM) is a professional services firm delivering tax, accounting and business advisory expertise throughout the Mid-Atlantic region from offices in Bethesda, MD and Washington, DC.