If you’re claiming deductions for business meals or auto expenses, expect the IRS to closely review them. In some cases, taxpayers have incomplete documentation or try to create records months (or years) later. In doing so, they fail to meet the strict substantiation requirements set forth under tax law. Tax auditors are adept at rooting
Joan Ellenbogen
Jun 14, 2023
Keep these DOs and DON’Ts in mind when deducting business meal and vehicle expenses
- By Joan Ellenbogen
- Business
- 0 Comments
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Jun 8, 2023
Ease the burden of being a member of the Sandwich Generation with these action steps
- By Joan Ellenbogen
- Estate
- 0 Comments
If you’re currently taking care of your children and elderly parents, count yourself among those in the “Sandwich Generation.” Although it may be personally gratifying to help your parents, it can be a time-consuming and financial burden. How can you best handle the financial affairs of parents in the later stages of life? Incorporate their
May 25, 2023
The IRS has just announced 2024 amounts for Health Savings Accounts
- By Joan Ellenbogen
- Business
- 0 Comments
The IRS has released next year’s inflation-adjusted amounts for Health Savings Accounts. For 2024, the annual contribution limit for an individual with self-only coverage under a high-deductible health plan (HDHP) will be $4,150. For an individual with family coverage, it will be $8,300. This is up from $3,850 and $7,750, respectively, for 2023. For calendar
May 16, 2023
Use the tax code to make business losses less painful
- By Joan Ellenbogen
- Business
- 0 Comments
Whether you’re operating a new company or an established business, losses can happen. The federal tax code may help soften the blow by allowing businesses to apply losses to offset taxable income in future years, subject to certain limitations. Qualifying for a deduction The net operating loss (NOL) deduction addresses the tax inequities that can
Mar 29, 2023
Data analytics is more accessible than you might think
- By Joan Ellenbogen
- Non-Profit
- 0 Comments
No matter your not-for-profit’s mission, you can probably use data analytics to help uncover root causes of seemingly intractable problems, predict outcomes, boost efficiency and improve transparency. Analysis of certain fundraising data may, for example, make it easier to target potential donors or members. Data analytics can also help develop connections and patterns that lead
Mar 23, 2023
Two important tax deadlines are coming up — and they don’t involve filing your 2022 tax return
- By Joan Ellenbogen
- Taxes
- 0 Comments
April 18 is the deadline for filing your 2022 tax return. But a couple of other tax deadlines are coming up in April and they’re important for certain taxpayers: Saturday, April 1 is the last day to begin receiving required minimum distributions (RMDs) from IRAs, 401(k)s and similar workplace plans for taxpayers who turned 72
Feb 7, 2023
Retirement plan early withdrawals: Make sure you meet the requirements to avoid a penalty
- By Joan Ellenbogen
- Retirement, Taxes
- 0 Comments
Most retirement plan distributions are subject to income tax and may be subject to an additional 10% penalty if you take a withdrawal before age 59½. Fortunately, there are some exceptions to avoid the penalty but there are strict rules. In one case (TC Memo 2023-9), a taxpayer lost his job and took a 401(k)
Dec 28, 2022
Renting to a relative? Watch out for tax traps
- By Joan Ellenbogen
- Taxes
- 0 Comments
If you own a home and rent it to a relative, you may be surprised to find out there could be tax consequences. Quick rundown of the rules Renting out a home or apartment that you own may result in a tax loss for you, even if the rental income is more than your operating
Dec 21, 2022
Annual gift tax exclusion amount increases for 2023
- By Joan Ellenbogen
- Estate
- 0 Comments
Did you know that one of the most effective estate-tax-saving techniques is also one of the simplest and most convenient? By making maximum use of the annual gift tax exclusion, you can pass substantial amounts of assets to loved ones during your lifetime without any gift tax. For 2022, the amount is $16,000 per recipient.
Dec 14, 2022
Computer software costs: How does your business deduct them?
- By Joan Ellenbogen
- Business, Deductions
- 0 Comments
These days, most businesses buy or lease computer software to use in their operations. Or perhaps your business develops computer software to use in your products or services or sells or leases software to others. In any of these situations, you should be aware of the complex rules that determine the tax treatment of the