Learn the Tax Law Changes for Electric Vehicle Purchases

Thanks to the newly enacted Inflation Reduction Act, there is much to consider when buying an electric vehicle or a plug-in hybrid. Significant Changes in the Electric Vehicle Credit for 2022 Applying to both business and non-business vehicles, the $7,500 maximum credit for fully electric cars or plug-in hybrid electric vehicles remains in place through … Read more

More on the Series I Bonds from the US Treasury

If a Series I bond is purchased from now through October 31, 2022, it can earn 9.62 percent for six months, guaranteed.  The Treasury Department at the end of six months: adds the interest earned to the principal, and pays interest on the new principal balance at the new rate that is determined on November … Read more

Buy Series I Bonds Now and Earn 9.62 Percent Tax-Deferred

Series I bonds pay 9.62 percent interest until the end of October 2022. Until the end of October 2022, it is possible to purchase Series I bonds that pay 9.62 percent interest. The 9.62 percent interest rate is applicable for 6 months from the time of purchase.  The interest earned for the first six months … Read more

Eight Common Mistakes in a Like-Kind Exchange and How to Avoid Them

A like-kind exchange is a great idea, but when mistakes occur, a failed exchange places the seller in double trouble.  One of the most tax-favored transactions is the like-kind exchange (also commonly called a 1031 Exchange).  In a like-kind exchange, the sellers of real property may defer the gain of the sale of real estate … Read more

The Benefits of Paying a Child on a W-2

A business owner hired his 15-year-old daughter to work in his single-member LLC business.  She is expected to be paid about $12,000 for the year.  What are the benefits of paying her on a W-2 A single-member LLC is a “disregarded entity” for federal tax purposes.  It is taxed as a sole proprietorship unless corporate … Read more

IRS Provides Some Welcome Relief and Increases the Standard Mileage Rate

When the IRS noticed that gas prices across the country went beyond, $5.00 a gallon, it took action.  Small businesses that use the standard mileage rate can now deduct 62.5 cents per business mile from July 1 through December 31, 2022.  This means additional 4 cents a mile from 58.5. The next question is:  what … Read more

Do Partner and LLC Members Need to Pay Self-Employment Taxes?

The outright answer to the question above is not always clear, even if millions of American businesses legally organize themselves as limited liability companies (LLCs), partnerships, or similar entities.  This article will try to provide the answer. What about General Partnerships? If two or more people own a business together and do not form another … Read more

How to get 100% deduction for business meals in 2021

IR-2021-79, April 8, 2021 WASHINGTON — The Treasury Department and the Internal Revenue Service today issued Notice 2021-25 PDF providing guidance under the Taxpayer Certainty and Disaster Relief Act of 2020. The Act added a temporary exception to the 50% limit on the amount that businesses may deduct for food or beverages. The temporary exception to the business … Read more

Considering a Low-Tax State? Consider more than just Federal Taxes

When choosing a new state, consider all applicable taxes and save taxes when moving. There may be different reasons why a person or family would uproot themselves from their homes and move to another state.  If the move is due to work and the company is giving a choice between two states, it is a … Read more