Effective January 1, 2024, the tax credit for electric vehicles (EVs) will be available at the car dealership—at the time of purchase. This is very exciting news for those who are considering purchasing an EV. The current process of claiming an EV credit (for a vehicle placed in service during tax years 2023 and before)… [Read More].
The extremely tight margin of the controlling party in the House of Representatives has led to some interesting, historic, and some might say chaotic outcomes on U.S. government operations this year. Legislation involving the basic functions of our government has become significantly more difficult to pass. We narrowly avoided a national debt default this past… [Read More].
Given that many of you are now in the process of engaging for 2022 tax preparation, for this month’s blog I thought it was important to prepare clients for what to potentially expect for 2022, as compared to 2021. There were many tax benefits that were in place for tax year 2021 (due to the… [Read More].
Because the vast majority of small businesses operate on the cash basis of accounting (meaning that expenses are deducted when paid), it can be critical from a tax standpoint whether a transaction occurs on December 31 versus January 1. Generally, a transaction that occurs on December 31 (i.e. before the calendar year closes) is reportable… [Read More].
Last week, Hurricane Ian wreaked havoc upon the states of Florida, North Carolina, and South Carolina. My sincerest thoughts and prayers are with everyone who has experienced loss of life, health, property, and security associated with this hurricane and other recent disasters. Most readers of my blog are aware that I live in North Carolina,… [Read More].
Christmas has come a bit early this year for millions of taxpayers who filed late tax returns for tax years 2019 and 2020. The IRS recently announced in Notice 2022-36 that it will be providing automatic penalty relief to individuals and businesses who failed to file a timely tax return. This relief applies to 2019… [Read More].
If you invest in stocks, bonds, mutual funds, ETFs, cryptocurrency, real estate, or other assets that produce income and gains, then you definitely know how tough it can be to achieve a successful result. This is especially true in 2022—many analysts have described the recent downtown in the crypto markets as a “crypto crash” and… [Read More].
Now that Tax Day has passed, after the initial relief that you may feel in getting your tax return filing accomplished, you may wonder what you should do next. Many of you are familiar with the typical next steps such as setting up estimated tax payments, engaging in a comprehensive tax plan, and resolving to… [Read More].
Each year I provide a tax organizer document for each of my tax preparation clients to complete. It requests demographic information and answers to several questions about the client’s tax situation. These questions ask about the client’s income and deductions and seek information to determine the client’s tax reporting obligations. One question that appears on… [Read More].
One of the most tedious and cumbersome tasks that many small business owners undergo in the new year is filing Forms 1099-MISC and Forms 1099-NEC. These forms are commonly required to report rent paid to landlords and compensation paid to independent contractors for the previous year. As a general rule, payments of $600 or more… [Read More].