Who doesn’t want to pay less taxes, as long as it’s legally permitted? Here are nine tips to consider taking action on before 2020 comes to a close. 1. Maximize Retirement Contributions Through Your Employer’s 401(k) Plan This type of plan allows you to contribute pre-tax dollars to retirement, and contributions directly reduce taxable wage […]
Deduction Limitations on Business Interest Expense: Final Regulations Are Released
Treasury and the IRS recently released final regulations under Section 163(j) of the Tax Code, which relates to limitations on the deduction of business interest expense. This section was revised as part of the 2017 Tax Cuts and Jobs Act (TCJA) and was further modified as part of the CARES Act provisions. Background As part […]
Tax Considerations of a Chapter 11 Bankruptcy Filing
Chapter 11 bankruptcy is a form of bankruptcy that can be filed by businesses or individuals. Its goal is to give the filer time to reorganize and reduce their debt rather than discharge it. Under this type of bankruptcy, businesses can continue to operate, and individuals can keep certain assets that might otherwise be sold […]
Are You Withholding Taxes on Your State Unemployment Compensation?
Many people erroneously believe that state unemployment compensation is not considered taxable income, resulting in quite an unpleasant surprise at tax time when they realize their mistake. With a record number of Americans filing for unemployment benefits due to the Covid-19 pandemic and struggling to make ends meet, it’s important to plan ahead in order […]
Real Estate Enterprise: How to Qualify for a Section 199a Deduction
At the end of 2019, the IRS issued updated guidance on a new rental real estate safe harbor rule which allows certain rental real estate to be considered an “enterprise” eligible for a Section 199a deduction. What is Section 199a deduction? Section 199a gives owners of pass-through business entities an extra deduction of up to […]