The 6,000 lb. Gross Vehicle Weight Tax Deduction
In a previous blog post, we discussed how Section 179 of the tax code allows business owners to accelerate deductions for tangible business assets. Today we’ll explore one strategy for further maximizing tax efficiency by increasing the weight of vehicles used for business. Under the IRS’s depreciation provisions, different rules apply between smaller vehicles such […]
“I filed an extension. Why do I have to pay penalties now?”
This is one of the most frequently asked questions we receive around the extended October deadline! In the spring, we just as frequently hear, “I have an extension. Why do I need to make an estimated payment?” Unfortunately, even though an extension grants you additional time to file, it does not give you additional time […]
Business Owners: Are you deducting your health insurance premiums?
With the high cost of healthcare coverage, self-employed taxpayers may find relief by taking advantage of tax deductions for health insurance premiums. Self-employed taxpayers include sole proprietors, members of LLCs, partners, and owners of S-corporations. Who is not eligible? You may not take the deduction if you were eligible to participate in an employer-subsidized plan. […]
Cost Segregation Studies for Rental Real Estate
Introduction Last week we discussed how Section 179 depreciation generates upfront cashflow for businesses by deducting the full cost of an asset in the year it is purchased. And while the tangible property we discussed had a useful life for tax purposes of 5 to 7 years, the life for residential rental real estate is […]
Section 179 Deductions
Tangible business assets include vehicles, equipment, and furniture. Depreciation is an accounting method used to allocate the cost of a tangible asset over its useful life. Depreciation ties the cost of using an asset with the benefit gained over its useful life. The IRS specifies the useful life of many types of assets under the […]
U.S. Energy Investments
Overview While many potential tax saving strategies are limited to business owners, oil and gas deductions can benefit high-earning W-2 employees as well. Energy investments avoid the phased-out deductions for real estate losses that investors face between $100,000 and $150,000 in income. These investments offer large tax deductions in the first year followed by attractive […]
Overview of the Inflation Reduction Act of 2022
Background The Inflation Reduction Act that was signed into law in August is a remnant of the “Build Back Better Plan.” The original $6 trillion dollar proposal was supported by President Biden and essentially comprised his domestic agenda. While most of the original proposal died in legislation, a very limited portion of the plan was […]
Catch-Up Retirement Contributions
Experts recommend investing for retirement early and often. When life gets in the way, however, that ideal may not be achievable. The government has provisions in place to help employees over the age of 50 either get on track or augment already solid savings. The retirement account contribution limits for employees over 50 is larger […]
1031 Exchanges
Introduction If you purchased an investment property a few years ago, you were probably thrilled to see the skyrocketing prices in the Phoenix valley and across the country recently. For those that sold properties at top dollar, however, their excitement about their profits might have been dampened by the blow of a big tax bill. […]
Charges Filed in First Insider Trading Case Involving Crypto
In July of 2022, the Department of Justice charged three individuals in the first-ever insider trading case concerning cryptocurrency. This move reflects the US government’s increasingly aggressive commitment to regulating crypto. What We Know 3 individuals charged with wire fraud conspiracy and wire fraud 1 of the individuals is a former employee at Coinbase Estimated […]
