Category: Taxation-Individuals

Negotiations continue in Washington, D.C., over the future of President Biden’s agenda. Tax law changes may be ahead under two proposed laws, the Build Back Better Act (BBBA) and the Bipartisan Infrastructure Bill (BIB), also known as the Infrastructure Investment and Jobs Act. The final provisions remain to be seen, but the BBBA and, to a lesser extent, the BIB, contain a wide range of tax proposals that could affect individuals and businesses. It’s also unclear when the tax changes… Read more ›

The days of classic “tax shelters”— such as cattle breeding or oil drilling deals — are long gone. But at least one major tax shelter is still standing: Your home. If you own your principal residence, you can cash in on a bevy of tax breaks, saving thousands of tax dollars or even more. Accordingly, here are six ways your home can provide tax shelter. 1. Home sale exclusion. Let’s begin with the biggest tax payoff for homeowners. If you… Read more ›

An important payroll tax deadline is coming up for certain employers. To provide relief from the economic ravages of COVID-19, the CARES Act allowed employers to defer their share of Social Security tax from March 27 through Dec. 31, 2020. Those employers must now pay 50% of the deferred tax by Dec. 31, 2021, and the balance by Dec. 31, 2022. In guidance, the IRS Office of Chief Counsel states that to avoid penalties, deposits must be made of “all… Read more ›

Estate planners often tout the virtues of owning property jointly — and with good reason. Joint ownership generally offers several advantages for surviving family members. But this shouldn’t be viewed as a panacea for every estate planning concern. You must also be aware of all the implications. Title Wording Matters – Joint Ownership in Estate Planning Joint ownership requires interests in property by more than one party. The type of joint ownership depends on the wording of the title to… Read more ›

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business. A necessary expense is one that’s helpful and appropriate for your business. The IRS sometimes challenges deductions claimed for certain types of business expenses. In doing so, an examiner might claim that payments made by a corporation to a shareholder for personal items or that are above or below fair market value constitute… Read more ›

DC metropolitan-area shoppers looking for a deal should consider taking advantage of tax-free shopping in Virginia and Maryland starting tomorrow. Below are details for those anticipating purchases in such areas as back-to-school shopping and preparation for the fall season. Virginia (Tax-Free Weekend, August 6-8) School supplies under $20 can be purchased tax-free Apparel/footwear under $100 can be purchased tax-free Additionally, Virginia has made several hurricane and emergency preparedness product purchases available tax-free including: Portable generators less than $1,000 per item… Read more ›

Solar panel technology is nothing new. However, advancing technology and a concern for the environment created a wide push to adapt to more renewable energy sources. Many electric utility companies are developing or relying more heavily on wind farms, water-powered energy, and farms of solar panels. Some of them are offering credits to consumers for installing solar panels on their property and allowing them to buy any excess energy generated. As a car dealership, there are several benefits to converting… Read more ›

The 2021 advance child tax credit (CTC) payments, which were established under a recent law, will begin being made on July 15, 2021, the IRS announced. The tax agency also stated that “roughly 39 million households — covering 88% of children in the United States — are slated to begin receiving monthly payments without any further action required.” Background Taxpayers are allowed a child tax credit for each qualifying child. The credit was temporarily expanded and made refundable for 2021 by… Read more ›

President Biden recently announced his $1.8 trillion American Families Plan (AFP), the third step in his Build Back Better policy initiative. The announcement followed the previous releases of the proposed $2.3 trillion American Jobs Plan and the Made in America Tax Plan. These plans propose major investments in various domestic initiatives, such as expanded tax credits for families, offset with tax increases on high-income individual taxpayers and corporations. American Families Plan: Proposed tax changes for the wealthy The American Families… Read more ›

President Biden’s proposals for individual taxpayers were outlined in an April 28 address to Congress and in an 18-page fact sheet released by the White House. The “American Families Plan” contains tax breaks for low- and middle-income taxpayers and tax increases on those “making over $400,000 per year.” Here’s a summary of some of the proposals. Extended tax breaks – American Families Plan Extend the Child Tax Credit (CTC) increases in the American Rescue Plan Act (ARPA) through 2025 and… Read more ›