Taxes

Tax Implications of Student Loan Debt Relief

Many people have incurred student loan debts. But some are fortunate enough to have their loans discharged or paid off by employers. If you’re one of the lucky ones, be aware that cancellation of student loan debt will result in taxable income, unless an exception applies. Here’s an overview of the federal income tax rules that apply in these situations.

Do LLC Members Owe Self-Employment Tax?

Authoritative IRS guidance on whether members of multi-member limited liability companies (LLCs) owe self-employment tax is lacking. Here’s an overview of the existing guidance and a U.S. Tax Court decision on this issue. For owners of single-member LLCs, the question isn’t in doubt — but the answer isn’t taxpayer friendly.

Federal Tax News for Businesses

Reporting by Third-Party Settlement Organizations Is Changing If you run a business and receive payments through third-party settlement organizations (TPSOs), expect significant changes in 2022. To improve voluntary tax compliance, the American Rescue Plan Act (ARPA) now requires TPSOs to significantly increase reporting of financial…

Unlock 8 Tax Breaks for Home Ownership

Home ownership can be a financially rewarding investment, especially when you factor in the potential tax savings opportunities. This article summarizes various federal tax breaks that sweeten the deal for homeowners today, including the home sale gain exclusion, itemized deductions for mortgage interest and property taxes, credits for certain “green” home improvements and more.

IRS reporting requirements for cash payments received in a trade or business

Section 6050I of the Internal Revenue Code requires that any trade or business that receives more than $10,000 in cash in one or more related transactions must report this information to the IRS on Form 8300.

Feast on Bigger Tax Deductions for Business Meals

Wining and dining customers can provide tax deductions. In fact, the deduction for business meals has been doubled from 50% to 100% of the cost of restaurant-provided food and beverages for the 2021 and 2022 tax years. The temporary deduction includes sales tax, delivery charges and tips. Recent IRS guidance extends this favorable tax treatment to the meal portion of travel per diems paid or incurred for the 2021 and 2022 tax years.

Close-Up on the Individual AMT

Are you at risk for this dreaded tax? Here’s a refresher on the AMT rules that apply to individual taxpayers for 2018 through 2025.

Navigating the Tax Angles for ETFs

Before you jump on the ETF bandwagon, it’s important to understand the federal income tax rules that apply to dividend payments, as well as gains and losses on sales of ETF shares using a taxable brokerage firm account. Here are the details.

4 Big Charitable Tax Breaks for 2021

Charitable giving is often rewarded with federal income tax breaks. Recent legislation includes four temporary expansions of the breaks for individuals and businesses that donate to qualified charities through the end of 2021. Here’s an overview of these provisions, which Uncle Sam hopes will encourage you to make additional charitable contributions during the COVID-19 pandemic.

Refresher on the Home-Sale Gain Exclusion Tax Break

Before you sell your home or a vacation home, it’s important to review the basics of the federal income tax home-sale gain exclusion. If you qualify, the gain exclusion is one of the most valuable tax breaks on the books. Here’s an overview of how this break works.