If your small business is planning for payroll next year, be aware that the ‘Social Security wage base’ is increasing. The Social Security Administration recently announced that the maximum earnings subject to Social Security tax will increase from $137,700 in 2020 to $142,800 in 2021. For 2021,...
October 15 is the deadline for individual taxpayers who extended their 2019 tax returns. (The original April 15 filing deadline was extended this year to July 15 due to the COVID-19 pandemic). If you are finally done filing last year’s return, you might wonder: Which...
Are you wondering if the passive activity loss rules affect business ventures you are engaged in or might engage in? If the ventures are passive activities, the passive activity loss rules prevent you from deducting expenses that are generated by them in excess of their income....
If you file a joint tax return with your spouse, you should be aware of your individual liability. And if you are getting divorced, you should know there may be relief available if the IRS comes after you for certain past-due taxes. What is ‘Joint and...
IRS audit rates are historically low, according to the latest data, but that is little consolation if your return is among those selected to be examined. But with proper preparation and planning, you should fare well. In fiscal year 2019, the IRS audited approximately 0.4 percent...
As a result of the current estate tax exemption amount ($11.58 million in 2020), many estates no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. Now, because many estates will...
Do you buy or lease computer software to use in your business? Do you develop computer software for use in your business or for sale or lease to others? Then you should be aware of the complex rules that apply to determine the tax treatment...
In some cases, investors have significant related expenses, such as the cost of subscriptions to financial periodicals and clerical expenses. Are they tax deductible? Under the Tax Cut and Jobs Act, these expenses are not deductible through 2025 if they are considered expenses for the...
The business use of websites is widespread. But surprisingly, the IRS has not yet issued formal guidance on when Internet website costs can be deducted. Fortunately, established rules that generally apply to the deductibility of business costs, and IRS guidance that applies to software costs, provide...
COVID-19 has changed our lives in many ways, and some of the changes have tax implications. Here is basic information about two common situations. Working From Home Many employees have been told not to come into their workplaces due to the pandemic. If you are...