Here’s your bonus: Depreciation and Section 179 expensing

The year-end is just around the corner, but there’s still time to make some tax-saving moves. If you made any large purchases for your business this year, one strategy is to take advantage of depreciation. Two categories allow 100% depreciation to be taken in the year equipment and fixed assets are purchased or placed in […]

Home sweet home: Do you qualify for office deductions?

If you’re a business owner working from home or an entrepreneur with a home-based side gig, you may qualify for valuable home office deductions. But not everyone who works from home gets the tax break. Employees who work remotely can’t deduct home office expenses under current federal tax law. To qualify for a deduction, you […]

Why donor-advised funds are worth a second look

It goes without saying that 2020 has been a year unlike any other, which makes relying on your trusted business and tax adviser for year-end tax planning even more important. We have offered 10 year-end tax strategies that you can take advantage of now, but there is one in particular that we want to discuss […]

Looking to the future: Biden’s proposed tax plan

Between a more urgent need for Covid relief, economic stimulus and a narrowly divided Congress, Joe Biden’s proposed tax plan may not get much traction in the early days of his administration. It is important, however, to take a look at the president-elect’s priorities that may inform more targeted legislative actions. Below is a snapshot […]

IRS clarifies position on PPP loan expenses

Please remember: Covid-19 pandemic is an unprecedented event and the PPP loans are a unique response to this crisis. Therefore, there is no prior precedent for taxability and the IRS is establishing its rationale for its decision. The IRS has issued a ruling this week that clarifies its position that expenses paid with PPP loan funds will […]

Electric Honda, Volvo models eligible for vehicle credit

Electric vehicles are becoming more popular, and the IRS has added several 2021 model year Honda and Volvo vehicles to the already growing list of vehicles eligible for the plug-in electric drive motor vehicle credit. A tax credit of $2,500, plus an additional amount based on battery capacity, up to $7,500 is offered for qualified […]

5 things to know about bonus depreciation

Year-end tax planning is underway, and you may be eligible for a bonus. New and most used property placed in service in 2020 may be eligible for 100% bonus depreciation. In the past, used property did not qualify for bonus. It currently qualifies unless the taxpayer previously used the property and the property was acquired […]

Why it’s important to plan for income taxes as part of your estate plan

As a result of the current estate tax exemption amount ($11.58 million in 2020), many estates no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. Now, because many estates won’t be subject to estate tax, more planning can be devoted […]

Year-end tax planning goes to the movies

Year-end tax planning is a bit more complex this year as many of our clients received loans through the Paycheck Protection Program. While the loan proceeds are not taxable, word is still out whether the business expenses paid for with the loan will be deductible. Therefore, we are preparing tax projections with two scenarios in […]