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Update on Retirement Account Required Minimum Distributions
If you have a tax-favored retirement account, including a traditional IRA, you’ll become exposed to the federal income tax required minimum distribution (RMD) rules after reaching a certain age.
Keep Reading this post - Update on Retirement Account Required Minimum Distributions
California Top Tax Rate for Wage Earners Increased to 14.4%
In the state of California, if you are the sole shareholder (other than your spouse) and officer of a corporation, you could save over $1,300 by electing to exclude your corporate wages from State Disability Insurance (SDI) withholding.
Keep Reading this post - California Top Tax Rate for Wage Earners Increased to 14.4%
Coordinating Sec. 179 Tax Deductions With Bonus Depreciation
Your business should generally maximize current year depreciation write-offs for newly acquired assets. Two federal tax breaks can be a big help in achieving this goal: first-year Section 179 depreciation deductions and first-year bonus depreciation deductions. These two deductions can potentially allow businesses to write off some or all of their qualifying asset expenses in Year 1. However, they’re moving targets due to annual inflation adjustments and tax law changes that phase out bonus depreciation. With that in mind, here’s how to coordinate these write-offs for optimal tax-saving results.
Keep Reading this post - Coordinating Sec. 179 Tax Deductions With Bonus Depreciation
Keep These Three Issues in Mind After You File Your Return
The tax filing deadline for 2023 tax returns is April 15 this year. If you need more time, you can file for an extension until October 15. In either case, once your 2023 tax return has been successfully filed with the IRS, there may still be some issues to bear in mind. Here are three considerations.
Keep Reading this post - Keep These Three Issues in Mind After You File Your Return
New Option for Unused Funds in a 529 College Savings Plan
With the high cost of college, many parents begin saving with 529 plans when their children are babies. Contributions to these plans aren’t tax deductible, but they grow tax deferred. Earnings used to pay qualified education expenses can be withdrawn tax-free. However, earnings used for other purposes may be subject to income tax plus a 10% penalty.
Keep Reading this post - New Option for Unused Funds in a 529 College Savings Plan
Maximize the QBI Deduction Before It’s Gone
Is your business depreciating over 30 years the entire cost of constructing the building that houses your enterprise? If so, you should consider a cost segregation study. It may allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow.
Keep Reading this post - Maximize the QBI Deduction Before It’s Gone
Tax-Wise Ways to Take Cash from Your Corporation While Avoiding Dividend Treatment
Is your business depreciating over 30 years the entire cost of constructing the building that houses your enterprise? If so, you should consider a cost segregation study. It may allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow.
What’s the Best Accounting Method Route for Business Tax Purposes?
Businesses basically have two accounting methods to figure their taxable income: cash and accrual. Many businesses have a choice of which method to use for tax purposes.
Keep Reading this post - What’s the Best Accounting Method Route for Business Tax Purposes?
If You Gave to Charity in 2023, Check to See That You Have Substantiation
Did you donate to charity last year? Acknowledgment letters from the charities you gave to may have already shown up in your mailbox. But if you don’t receive such a letter, can you still claim a deduction for the gift on your 2023 income tax return? It depends.
Keep Reading this post - If You Gave to Charity in 2023, Check to See That You Have Substantiation