Category: Tax
Appraisal requirement may cause some to rethink charitable donation of cryptocurrency
In January 2023, the IRS advised that taxpayers will be denied a charitable contribution deduction for a donation of digital assets in excess of $5,000 without a qualified appraisal. While digital assets may have a value listed on an exchange...
Department of Defense offers free tax filing resources for military members
Active military service can make tax filing challenging, especially if the service member is deployed or on an intensive training mission. MilTax is a Department of Defense program designed to lessen the burden on service members by offering free tax return...
Tax benefits (and pitfalls) of hiring your minor children as a small business owner
School breaks can be a great time to enlist minor children to work in your small business. As long as they're doing legitimate work for your business, you can hire your child tax-free and pay each of them up to...
Corporate Transparency Act reporting requirements coming in 2024
A new law intended to help prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activity will affect millions of American businesses when it goes into effect on January 1, 2024. Broadly speaking, new regulations created...
Tax issues when operating a business as a married couple
One of the advantages of operating one's own business is hiring family members. However, the employment tax requirements for family employees may vary from those that apply to other employees. The IRS points out some issues to consider when operating...
Law changes to IRS Code Section 174 create uncertainty around R&D deductions
The Tax Cuts and Jobs Act of 2017 enacted a series of new provisions to the Internal Revenue Code. A change to Section 174, enacted in 1954 to allow businesses to deduct the costs of research and experimental expenditures, has...
Inheritance or gifts from foreign persons may require Form 3520 reporting
Although a gift or inheritance doesn’t generate any U.S. income tax reporting, it may generate other filing responsibilities for the recipient. As related to inheritances and gifts from foreign persons to a U.S. citizen or U.S. resident, Form 3520 (Annual...
Permanently idled property cannot be depreciated
The IRS recognizes a distinction between temporarily-idled property and permanently retired property, and the point when you stop depreciating the asset lies within the distinction. You always stop depreciating property when you have fully recovered your cost or other basis. You...
Michigan state income tax rate decreasing by .20% in 2023 only
Michigan’s state income tax will decrease from 4.25% to 4.05% for one year, equating to a savings of approximately $50 for the average Michigan taxpayer. In 2015, Michigan enacted a law requiring a temporary reduction of the state income tax...
Compliance risk for people and businesses claiming Employee Retention Tax Credit improperly
The Internal Revenue Service today issued a renewed warning urging people to carefully review the Employee Retention Credit (ERC) guidelines before trying to claim the credit as promoters continue pushing ineligible people to file. The IRS and tax professionals continue...