deduction

There’s A Deduction For Student Loan Interest … But Do You Qualify For It?

If you’re paying back college loans for yourself or your children, you may wonder if you can deduct the interest you pay on the loans. The answer is yes, subject to certain limits. The maximum amount of student loan interest you can deduct each year is $2,500. Unfortunately, the deduction is phased out if your…

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IRS audits

IRS Audits May Be Increasing, So Be Prepared

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 audits these days, that will be little consolation if yours is one of them. Latest statistics Overall, just 0.5%…

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May/June 2021 Tax Tips

Are you eligible for energy-efficiency tax breaks? The Consolidated Appropriations Act (CAA) extended certain tax breaks for energy-efficient buildings that were set to expire at the end of 2020. So, now may be a good time for eligible real estate owners and developers to review the potential benefits. First, the CAA made permanent the Section…

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home office deduction

If You Run a Business from Home, You Could Qualify for Home Office Deductions

During the COVID-19 pandemic, many people are working from home. If you’re self-employed and run your business from your home or perform certain functions there, you might be able to claim deductions for home office expenses against your business income. There are two methods for claiming this tax break: the actual expenses method and the…

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Can I Deduct It?

Can I Deduct It? Expense Considerations for Self-Employed Individuals

2020 was certainly a year that will be remembered decades into the future for a variety of reasons.  COVID-19 completely overtook our lives as it directly and indirectly affected millions.  We saw millions infected, thousands die, and a booming economy crash to earth. As a self-employed individual, to survive, you needed to adapt your business…

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IRS regs on charitable contributions

How Will the IRS’s Regs on Donations for “Consideration” Affect You?

The IRS issued its final regulations on the tax treatment of transfers made to charitable entities in return for “consideration.” Among other things, the rules tackle a recent tax strategy for avoiding the limit on state and local tax deductions imposed by the Tax Cuts and Jobs Act (TCJA). The regs also include an important…

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medical expense

Can You Qualify for a Medical Expense Tax Deduction?

You may be able to deduct some of your medical expense, including prescription drugs, on your federal tax return. However, the rules make it hard for many people to qualify. But with proper planning, you may be able to time discretionary medical expenses to your advantage for tax purposes. Itemizers must meet a threshold For…

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depreciation

Small Businesses: Cash in on Depreciation Tax Savers

As we approach the end of the year, it’s a good time to think about whether your business needs to buy business equipment and other depreciable property. If so, you may benefit from the Section 179 depreciation tax deduction for business property. The election provides a tax windfall to businesses, enabling them to claim immediate…

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landlords tax implicatons

Landlords and COVID-19: What are the Tax Implications?

The COVID-19 pandemic has had a significant impact on landlords. Many tenants have struggled to meet their financial obligations, often resulting in late or unpaid rent or negotiated lease modifications. As the end of 2020 quickly approaches, landlords should review the tax implications of their leasing activities. Cash versus accrual The tax impact of late…

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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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