More Savings!
If you missed the announcement of higher retirement plan limits for 2020, heres another look at some of them. WORK PLANS The annual limit for defined benefit plans rose from $225,000 to $230,000, while the combined (employer/employee) annual limit for 401(k), 403(b) and most 457 plans rose $1,000 to $57,000. The latter limit includes a […]
Big Income, Big Taxes
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 […]
February 2020 Q & A
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) […]
Changes to Retirement Rules
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 […]
Tax Extenders
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 […]
179D (Section 179 Energy Efficient Commercial Building Deduction) is Back!
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 […]
Tax Tips For Businesses
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 […]
Tax Tips For Individuals
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 […]
February 2020 Client Profile
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 […]
Tax Numbers to Know
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 […]