Tax

Business Interest Expense: How Much Can You Deduct?

The Tax Cuts and Jobs Act (TCJA) imposed a new limitation on deductions of business interest expense by certain companies. And the limit, found in Section 163(j) of the Internal Revenue Code, became even more restrictive in 2022 — especially for capital intensive businesses. As a construction business owner, you should determine whether the deduction…

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Tax Tips: January/February 2023

Now may be the time for a Roth conversion If you’ve watched the value of your retirement accounts shrink in recent months, there may be a silver lining: It’s an ideal time to convert your IRA or 401(k) plan into a Roth account. Roth IRAs and Roth 401(k)s offer many attractive benefits, including tax-free withdrawals…

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Consider the Use of an ILIT To Avoid Estate Tax

Holding a life insurance policy can provide peace of mind if you have concerns about your loved ones’ financial well-being after your death. Whether you “hold” the policy or a trust holds the policy can result in different tax outcomes. In short, if you’re left holding the policy at death, its proceeds will be included…

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Section 179D: Congress Enhances Tax Deduction for Energy-Efficient Buildings

The Inflation Reduction Act (IRA) significantly enhanced the Section 179D deduction for energy-efficient commercial building improvements placed in service after 2022. Among other things, the IRA nearly tripled the maximum deduction to $5 per square foot under certain circumstances and made it easier for improvements to qualify for the deduction. The IRA also expanded eligibility…

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Due Dates in 2023 for 2022 Tax Reporting and 2023 Tax Estimates

Here are the current statutory due dates for tax reporting for the 2022 tax year. For calendar year tax returns reporting 2022 information that are due in 2023, the following due dates will apply. Form 2023 Tax Filing Due Dates (Tax Year 2022) Form W-2 & 1099 NEC (electronic or mail) January 31st Form 1099-Misc…

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Adopting a Child? Tax Benefits Can Help Defray the Cost

If you’re adopting a child, or plan to do so in the future, you know that the process can be expensive. Although expenses are minimal for adoptions through the foster system, the cost of adopting a child through a private agency averages around $43,000 in the United States. Fortunately, there are tax benefits that can…

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SECURE 2.0 law may make you more secure in retirement

A new law was recently signed that will help Americans save more for retirement, although many of the provisions don’t kick in for a few years. The Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0) was signed into law on December 29, 2022. SECURE 2.0 is meant to build on the original…

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Save for retirement by getting the most out of your 401(k) plan

Socking away money in a tax-advantaged retirement plan can help you reduce taxes and help secure a comfortable retirement. If your employer offers a 401(k) or Roth 401(k), contributing to the plan is a smart way to build a substantial nest egg. If you’re not already contributing the maximum allowed, consider increasing your contribution. Because…

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Vehicle Depreciation Tax Planning

Many companies opt to use company-owned vehicles. Whether it be a large cement mixing truck for use on a construction site, a company van sent out with service professionals on work jobs, or a company car for executives, these purchases are important to the practical nature of some businesses and in some cases the image…

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Inflation-adjusted Tax Brackets for 2023

With the issuance of Rev Proc 2022-38, the Internal Revenue Service has released the inflation-adjusted tax brackets for 2023. 2022 saw extended periods of inflation, much more than 2021, and consequently, tax brackets were increased accordingly. As a result, this will change the tax due for any given taxpayer. Also, if a taxpayer’s income has…

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