Tag: deductions
SR Client Question: Are theft losses deductible?
Theft losses are NOT deductible under the current law, which was enacted as part of President Trump's 2017 Tax Cuts and Jobs Act. If a person is scammed out of their retirement savings, they have to pay taxes on the...
Using the “Cohan Rule” to take record-less deductions
Most taxpayers understand the importance of maintaining thorough records to substantiate tax deductions and credits. These records are not only essential for tax purposes but also play a critical role in various scenarios such as insurance claims, wage disputes, and...
Appraisal requirement may cause some to rethink charitable donation of cryptocurrency
In January 2023, the IRS announced that taxpayers will not be eligible for a charitable contribution deduction if they donate digital assets valued over $5,000 without obtaining a qualified appraisal. Despite digital assets potentially having a value listed on exchanges...
Michigan First-Time Home Buyer Savings Program offers favorable state tax treatment to new homebuyers
The Michigan First-Time Home Buyer Savings Program was created in 2022 to assist first-time home buyers (a Michigan resident who has not owned or purchased a single-family residence during a period of 3 years before the date of the purchase...