Deducting Disaster Losses for Individuals

Deducting Disaster Losses for Individuals

We seem to be living in an age of natural disasters. Floods, fires, hurricanes, tornados, and other disasters often dominate the news. If a disaster strikes you, the tax law may help. When defined as such by the tax code, a disaster loss may qualify for deduction from...
Business Tax Breaks Thanks to the Recently Enacted CAA

Business Tax Breaks Thanks to the Recently Enacted CAA

When you operate a business, you have a variety of tax breaks available. The recently enacted CAA extends and expands some of the breaks. We bring the following selection of them to your attention as a tax-strategy buffet. You can deduct 100 percent of your business...
COVID-19 Tax Relief Measures

COVID-19 Tax Relief Measures

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) made many temporary changes in the tax law. The new Consolidated Appropriations Act (CAA) adjusted some of these and left others to die on December 31, 2020. Below are insights into some of the...
Multiply Your Net Worth with a SEP IRA or Solo 401(k)

Multiply Your Net Worth with a SEP IRA or Solo 401(k)

How do you multiply your net worth? Let the government help. Here’s how: with both the SEP IRA and the solo 401(k) retirement plans, your investment in your tax-favored retirement • creates tax deductions for the money you invest in the plan, • grows tax-deferred...
Tax Extenders Passed with the COVID-19 Relief Law

Tax Extenders Passed with the COVID-19 Relief Law

The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted on December 27, 2020, deals with the annual tax extenders. Congress made some of them permanent, while others got short- or long-term extensions. These are the big five Form 1040 tax breaks that were...
IRS Penalty Forgiveness Using Reasonable Cause

IRS Penalty Forgiveness Using Reasonable Cause

The IRS can waive penalties it assessed against you or your business if there was “reasonable cause” for your actions. The IRS permits reasonable cause penalty relief for penalties arising in three broad categories: 1. Filing of returns 2. Payment of tax 3. Accuracy...