Expenses Deductions

Getting a New Car for Business? Buy or Lease? Part 2: Tax Consequences

This blog will address the tax consequences of both leased and owned vehicles used for business purposes. Hopefully, it will offer some insight into the decision as to what is best for your business: buying or leasing?

With both owned and leased cars, any related expenses may be deducted using the standard mileage rate or the total amount of actual expenses. If the vehicle is owned, you may choose the standard mileage rate in the first year and switch to the actual expense method in a later tax year. If a vehicle is leased, you may also choose the standard mileage rate in the first year but once you the standard mileage rate is chosen, it must be used for the life of the lease.

Getting a New Car for Business? Buy or Lease? Part 1: Leased Vehicles

Many business owners rely on transportation to achieve the goals and purposes of their business. A car purchased for use in a business has certain tax advantages for the owner. However, many business owners are now leasing cars for business use. More Americans lease autos than ever before because of attractive monthly costs and the ability to change cars frequently to keep up with new technology and safety features. But what’s better for your business, an owned or leased car?

Most Confusing Parts Of The Income Tax Code, Part 4: Education Tax Incentives

Many provisions of the Internal Revenue Code are complicated. Proper interpretation of the rules and regulations contained in these provisions requires the assistance of an experienced and knowledgeable tax professional. The fourth part of our series about the most confusing provisions of the Internal Revenue Code addresses education tax incentives.

Why Is It Confusing?

  • There are a large list of incentives from which to choose
  • New stricter requirements to establish eligibility for some incentives
  • Determining eligibility is a complicated, arduous, lengthy process
  • Difficulty in determining the correct and appropriate benefit

Seven Deadly Tax Sins

7 Deadly Tax Sins

When it comes to the IRS, some bad acts are worse than others.  We have compiled below the top ones to avoid at all costs.  However, if you should find yourself in the middle of one, you should certainly call tax attorneys to get you out of the bad situation (yes, it is a bad situation).

Tax Benefits of Supporting Your Parents

Did you know you could be responsible for your parents’ unpaid bills? Ever heard of Filial Responsibility Laws?  Well, these are laws obligating you to provide financial support for your indigent parents.  Yes, obligated under law.  According to the National Center for Policy Analysis, 21 states across the country (including states like Connecticut, New Jersey and Massachusetts) allow for a civil action to obtain financial support for indigent parents.   At least 12 states may impose criminal penalties on children who refuse to support their parents.  Though rarely enforced, these laws may be dusted off by states looking to save money on Medicaid bills.

Start Your Year-End Tax Saving Moves Now – Here’s How Part 2

It’s already fall and before you know it, another year wil be upon us. It’s never too early to plan ahead to minimze your tax bill. An experienced and knowledgeable tax professional can help any individual or business make the right year-end savings moves with important advice and assistance. Here is the second part of a two-part series on some things to ponder when considering potential tax moves between now and the end of 2016:

  1. Accelerate deductions

Start Your Year-End Tax Saving Moves Now – Here’s How Part 1

It’s already fall and before you know it, another year will be upon us. It’s never too early to plan ahead to minimize your tax bill. An experienced and knowledgeable tax professional can help any individual or business make the right year-end savings moves with important advice and assistance. Here is the first part of a two part series on some things to ponder when considering potential tax moves between now and the end of 2016:

  1. Make time to plan

The Most Overlooked Tax Deductions, Part 9

This is the ninth part of our series of blogs on the most overlooked tax deductions. In this blog, we will attempt to summarize the second half or group of prior articles in the series. For a more a detailed overview, see the blogs themselves!

HEALTH, CHILD CARE, AND CHARITY DEDUCTIONS

Deduction of Medicare Premiums for the Self-Employed
Self-employed individuals who continue to operate their own businesses after qualifying for Medicare can deduct their Medicare Part B and Medicare Part D premiums, plus the cost of supplemental Medicare policies or the cost of a Medicare Advantage plan, regardless of whether or not he or she itemizes.

Passive Activities – What is A Rental Activity?

There are two kinds of passive activities: trade or business activities in which the taxpayer does not materially participate during the year; and rental activities, even if the taxpayer does not materially participate in them, unless the taxpayer is a real estate professional. Many taxpayers have heard the term “passive activity” in relation to a rental activity and wondered exactly what it means.

An activity is a rental activity if real or personal tangible property is used or held for use by a taxpayer and gross income or expected gross income from the activity represents amounts paid or to be paid primarily for the property’s use, whether pursuant to a lease, service contract, or other agreement.

The Most Overlooked Tax Deductions, Part 8

This is the eighth part of our series of blogs on the most overlooked tax deductions. In this blog, we will attempt to summarize the first half or group of prior articles in the series. For a more a detailed overview, see the blogs themselves!

JOB & MOVING DEDUCTIONS

Job Search Expenses

As long as the position of employment sought is in the same line of work as a current or most recent job, job search expenses may be deducted as miscellaneous expenses if itemized.

Moving Expenses for a First Job

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