Tax

IRS Audit

The Easiest Way to Survive an IRS Audit is to Get Ready in Advance

IRS audit rates are historically low, according to the latest data, but that’s little consolation if your return is among those selected to be examined. But with proper preparation and planning, you should fare well. In fiscal year 2019, the IRS audited approximately 0.4% of individuals. Businesses, large corporations and high-income individuals are more likely…

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estate tax

Why It’s Important to Plan for Income Taxes as Part of Your Estate Plan

As a result of the current estate tax exemption amount ($11.58 million in 2020), many estates no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. Now, because many estates won’t be subject to estate tax, more planning can be devoted…

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September/October 2020 Tax Tips

September/October 2020 Tax Tips

Refund opportunity for excess business losses The Tax Cuts and Jobs Act (TCJA) limited the ability of noncorporate taxpayers — such as sole proprietors, partnerships and S corporations — to offset business losses against income from other sources. For 2018 through 2025, the TCJA limits deductions of “net business losses” to $250,000 ($500,000 for joint…

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investor or trader?

Can an Investor Who Manages Their Own Portfolio Deduct Related Expenses?

In some cases, an investor has significant related expenses, such as the cost of subscriptions to financial periodicals and clerical expenses. Are they tax deductible? Under the Tax Cut and Jobs Act, these expenses aren’t deductible through 2025 if they’re considered expenses for the production of income. But they are deductible if they’re considered trade…

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meals and entertainment

Meals & Entertainment Deduction Percentages

Since the passing of the Tax Cuts and Jobs Act at the end of 2017, there has been confusion surrounding what exactly can be deducted as a business expense as it relates to meals and entertainment.  Entertainment on its own is no longer a deductible expense, however there are some occasions where meals are deductible…

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spousal lifetime access trust SLAT

The Spousal Lifetime Access Trust: Uncertain Economic Times Call for Flexibility

One of the many lessons resulting from the COVID-19 pandemic and resulting economic downturn is that it’s imperative to build flexibility into your estate plan. Indeed, many people had been taking advantage of the current, record-high gift and estate tax exemption by gifting assets tax-free to family members. But then circumstances drastically changed earlier this…

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year-end tax planning strategies

Year-End Tax Planning for Investors

For investors, 2020 has been marked by volatility and uncertainty. As we approach the end of the year, it’s a good idea to review your portfolio and consider strategies for reducing your tax bill, improving your cash flow and positioning yourself for future growth. Let’s take a closer look at a few tax planning moves…

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unemployment and working from home tax implications

Tax Implications of Working from Home and Collecting Unemployment

COVID-19 has changed our lives in many ways, and some of the changes have tax implications. Here is basic information about two common situations: working from home and collecting unemployment. 1. Working from home. Many employees have been told not to come into their workplaces due to the pandemic. If you’re an employee who “telecommutes”…

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