Big losses claimed by real estate professionals get scrutiny. Real estate pros must spend over half of their working hours and more than 750 hours a year materially participating in realty to beat the passive-activity loss rules. Joint filers can’t combine their hours. A couple took a $24,000 loss for cabins they rehabbed for rental. …
Learn the warning signs of Employee Retention Credit scams Businesses and tax-exempt organizations should watch out for telltale signs of misleading claims involving the Employee Retention Credit. Scammers and unscrupulous promoters continue to run aggressive broadcast advertising, direct mail solicitations and online promotions for the credit. Many of these ads wildly misrepresent and exaggerate who can …
Itemizers have the most flexibility in shifting write-offs, as shown here. Home interest. If you pay your Jan. 2023 mortgage bill before year-end, you can deduct the interest portion on Schedule A of your 2022 income tax return. State and local taxes. If under the $10,000 cap and your locale allows it, pay the property …
Some popular tax provisions are expiring at year-end. Unless Congress acts to extend the breaks for another year or so, the last time you can take them is on your 2022 business or individual tax return that you will file next year. Among the expiring extenders: The ability of businesses to write off 100% of …
Here is a list of the items to that you will need to have your 2021 tax returns processed efficiently and accurately. Original form(s) W-2 Original form(s) 1099R (pensions/retirement documents) All 1099s – interest and dividend (brokerage) statements (include any 1099s for dependents) Social Security Statements (forms SSA-1099 or RRB-1099) 1099G – New York State …
Look at your investment portfolio. You have lots of tax-savings opportunities in the coming months as the year’s end approaches. Consider getting rid of poor performers. Capital losses you incur can offset your capital gains plus up to $3,000 of other income. Any excess losses are carried forward and can help offset future gains. If …
There are steps people, including those who received stimulus payments or advance child tax credit payments, can take now to make sure their tax filing experience goes smoothly in 2022. They can start by visiting the Get Ready page on IRS.gov. Here are some other things they should do to prepare to file their tax …
What taxpayers can do now to get ready to file taxes in 2022 Read More »
There are lots of breaks for buyers of business vehicles under the tax laws. The annual depreciation caps for passenger autos rise a bit in 2021. If bonus depreciation is claimed, the first-year ceiling is $18,200 for new and used cars first put in service this year. The second- and third-year caps are $16,400 and …
Tax Update September 30, 2021 – Business Tax Breaks and the Self Employed Read More »
Clients who requested extensions to file their 2020 tax returns of the upcoming Oct. 15 due date. People who asked for an extension should file on or before the extension deadline to avoid the penalty for filing late. The third batch of advance Child Tax Credit payments for the month of September, totaling about $15 …
Businesses can deduct 100% of restaurant meals in 2021 and 2022. The late 2020 stimulus law provides temporary relief from the 50% haircut that normally applies to the business meals write-off. The easing applies only to food and beverages purchased at a restaurant for takeout or dining in at the establishment. Client meals and meals …
