Tax

If you’re planning your estate, or you’ve recently inherited assets, you may be unsure of the “cost” (or “stepped-up basis”) for tax purposes. The current rules Under the current fair market value basis rules (also known as the “step-up and step-down” rules), an heir receives a basis in inherited property equal to its date-of-death value. […]

Do you have significant investment-related expenses, including the cost of subscriptions to financial services, home office expenses and clerical costs? Under current tax law, these expenses aren’t deductible through 2025 if they’re considered investment portfolios expenses for the production of income. But they’re deductible if they’re considered trade or business expenses. For years before 2018, […]

The IRS just released its audit statistics for the 2020 fiscal year and fewer taxpayers had their returns examined as compared with prior years. But even though a small percentage of returns are being chosen for IRS audits these days, that will be little consolation if yours is one of them. Latest statistics Overall, just […]

Are you eligible to take the pass-through deduction for qualified business income (QBI)? Here are 10 facts about this valuable tax break, referred to as the pass-through deduction, QBI deduction or Section 199A deduction. It’s available to owners of sole proprietorships, single member limited liability companies (LLCs), partnerships and S corporations. It may also be […]

Married couples may not be able to save as much as they need for retirement when one spouse doesn’t work outside the home — perhaps so that spouse can take care of children or elderly parents. In general, an IRA contribution is allowed only if a taxpayer earns compensation. However, there’s an exception involving a […]

The Employee Retention Tax Credit (ERTC) is a valuable tax break that was extended and modified by the American Rescue Plan Act (ARPA), enacted in March of 2021. Here’s a rundown of the rules. Background Back in March of 2020, Congress originally enacted the ERTC in the CARES Act to encourage employers to hire and […]

As we continue to come out of the COVID-19 pandemic, you may be traveling for business again. Under tax law, there are a number of rules for deducting the cost of your out-of-town business travel within the United States. These rules apply if the business conducted out of town reasonably requires an overnight stay. Note […]

Are you age 65 and older and have basic Medicare insurance? You may need to pay additional Medicare premiums to get the level of coverage you want. The premiums can be expensive, especially if you’re married and both you and your spouse are paying them. But there may be a bright side: You may qualify […]

If you’re a parent with a college-bound child, you may be concerned about being able to fund future tuition and other higher education costs. You want to take maximum advantage of tax benefits to minimize your expenses. Here are some possible options for college funds. Savings bonds Series EE U.S. savings bonds offer two tax-saving […]

The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who hire from targeted groups of people who have historically had difficulty in securing employment. These targeted groups include qualified veterans, recipients of Temporary Assistance to Needy Families (TANF), food stamp recipients, ex-felons, and qualified long-term unemployment recipients. Historically, employers apply […]