The IRS announced today that Tesla, Inc. has sold more than 200,000 vehicles eligible for the plug-in electric drive motor vehicle credit during the third quarter of 2018. This triggers a phase out of the tax credit available for purchasers of new Tesla plug-in electric vehicles beginning Jan. 1, 2019. Qualifying vehicles by the [...]
The Internal Revenue Service today issued the 2019 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: • 58 [...]
Despite the government shutdown, the Internal Revenue Service today confirmed that it will process tax returns beginning January 28, 2019 and provide refunds to taxpayers as scheduled. “We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown. I appreciate the hard work of the employees and their commitment to the [...]
A bunching strategy is when you time your donations to shift them into a single tax year. Because of the new higher standard deductions and limitation on state tax deductions, there will be more people without enough deductions to itemize. For example, if your filing status is married filing joint and you have $18,000 [...]
If you expect to have taxable capital gains in 2018, a good strategy to employ is “loss harvesting”. Loss harvesting is selling investments such as stocks and mutual funds that realize losses. These losses can be used to offset any taxable gains you have realized during the year, and any losses greater than your [...]
Did you know you can pay your kids on a W-2 up to $12,000 a year and they don't need to report that income? (Assuming they have no other income that is). If they are under 18, you don't need to pay FICA taxes on their wages, either. If your trade or business is [...]
A qualified charitable distribution, or QCD, is a direct transfer from an IRA to a qualified charity. Benefits Include: Giving money to a worthy charity of your choice. Reducing taxable portion of social security benefits since the QCD amount is excluded from income Reducing impact of certain tax credits and deductions by reducing your [...]
How long you should retain your personal income tax records? You may have to produce those records if IRS (or a state or local taxing authority) audits your return or seeks to assess or collect a tax. In addition, lenders, co-op boards, or other private parties may require that you produce copies of your [...]
Technology is a blessing and a curse. The average working professional receives about 200 email messages per day, each often arriving with a ding that conveys more urgency than most messages deserve. Add to that text messages, phone calls, meetings, and inquiries from colleagues sticking their heads through the open door. Workers are interrupted [...]
Under pre-Tax Cuts and Jobs Act Law, a net operating loss for any tax year was allowed to be carried back two years, and then carried forward 20 years. This carryback provided cash strapped taxpayers a quick refund of previously paid taxes. Under the new law, losses may only be carried forward so taxpayers [...]