Take Advantage of Expanded Tax Breaks for Business Vehicles
The Tax Cuts and Jobs Act (TCJA) expands the first-year depreciation deductions for vehicles used more than 50% for business purposes. Here’s what small business owners need to know to take advantage. Bad News for Employees with Unreimbursed Vehicle Expenses The new tax law isn’t all good news. Under prior law, employees who used their…
Medical Costs: Can I Really Get a Tax Break for That?
It’s difficult for many people to write off medical expenses because of the limits imposed under the tax laws. But you may qualify by including every expense allowed. Some of the qualified procedures may surprise you. ELIGIBLE NOT ELIGIBLE A weight-loss program undertaken at a physician’s direction to treat obesity or a condition such as…
Age Has its Privileges … and Penalties
In an era filled with uncertainty, you can count on one thing: time marches on. Here are some important age-related financial and tax milestones to keep in mind for you and your loved ones: Age 0 to 23. Under the Kiddie Tax rules, part of young person’s investment income can be taxed at the parent’s…
PCI Compliance: Protect Customer Information
The explosion in the use of debit and credit cards is not without a downside. As more and more credit cards are provided to merchants (including nonprofit organizations), the potential that the information will be stolen also increases. Consumers expect their card information will be handled by merchants in a secure manner. When card data…
How Financial Advisors are Compensated
The fees that investors pay to financial advisors for their advice and services come in two basic forms: transaction fees and ongoing fees. While advisors may differ in what fees they charge, they are required to fully disclose them. Transaction Fees These fees are generally one-time fees assessed when a transaction is made. Examples of…
This Is Not Your Grandfather’s Household
For the first time since the U.S. Census Bureau began tabulating family data, the percentage of U.S. households with a traditional husband-and-wife at the helm has dropped below the 50% mark. This “changing of the guard” is corroborated by other statistics. According to recently released results of the 2010 Census, only 48% of all households…
Follow Detailed Recordkeeping Rules for Vehicle Expense Deductions
Many business owners fail to follow the strict tax rules for substantiating vehicle expenses. But if your business is audited, the IRS will most likely ask for mileage logs if you deducted vehicle expenses — and it tends to be especially critical of the amount deducted if you’re self employed or you employ relatives. While…
Do Employers Have to Compensate Hourly Technicians for Travel Time?
The U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) has issued a new Opinion Letter on whether employers must compensate employees for travel time. These letters are issued to help the public better understand compliance with certain federal laws. They’re based exclusively on the facts provided by an employer that asks the agency…
Capital Gains Rates Before and After the New Tax Law
Are you confused about the federal income tax rates on capital gains and dividends under the Tax Cuts and Jobs Act (TCJA)? If so, you’re not alone. Here’s what you should know if you plan to sell long-term investments or expect to receive dividend payments from your investments. Old Rules Prior to the TCJA, individual…
Tax Allocations When a Partner Exits
Let’s say a partner in your law firm exits partway through the firm’s tax year. How are partnership tax items for that year allocated between the departing partner and the remaining partners? There is more than one way to handle this situation. In general, three methods are allowed for making such allocations. Here is a…