Small Business Owners May Qualify to Deduct Their Home Office Expenses

If you own a small business and “exclusively and regularly” use part of your home as your primary place of doing business, you may be able to deduct some of the expenses of operating your home office on your federal income tax return. Unfortunately, employees are not eligible to claim the home office deduction to the…

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Taxable and Nontaxable Employee Benefits

As the unemployment rate falls from its 2020 high, employees are switching jobs in record numbers. The new stability in the economy means workers have more leeway to shop around for jobs that fit their lifestyles, needs, and values. Now, the onus is on employers to provide an environment that makes their star team members…

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IRS Announces Mileage Rates for 2022

The IRS has issued the 2022 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, 2022, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be: 58.5 cents per mile driven…

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IRS Offers Guidance on ERC

The IRS has issued guidance for employers regarding the retroactive termination of the Employee Retention Credit. The Employee Retention Credit now applies only to wages paid before October 1, 2021, unless the employer is a recovery startup business. This guidance can be found in Notice 2021-65. It applies to employers that paid wages after September 30,…

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Payroll Tax Rates and Contribution Limits for 2022

Below are federal payroll tax rates and benefits contribution limits for 2022. Social Security tax In 2022, the Social Security tax rate is 6.2 percent for employers and employees, unchanged from 2021. The Social Security wage base is $147,000 for employers and employees, increasing from $142,800 in 2021. In 2022 self-employed people must pay 12.4…

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January Tax Due Date Is Approaching

As the year winds down, it’s time for businesses to start preparing for their tax filings. January 31 is the due date for many significant tasks, as shown below. Businesses should keep in mind that state taxing authorities have their own set of due dates. Also, the IRS will grant extensions because of serious weather-related…

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Do You Need a Forensic Accountant?

If you discover money missing from your business, you may need a forensic accountant. Forensic accountants are qualified to investigate the source of missing money and determine whether you were robbed or taken advantage of financially. They’re the people you need when you need to find out where the money went. These experts can research…

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Proposed Tax Changes – Build Back Better

In our October newsletter we ran an article that outlined the proposed tax law changes related to the Build Back Better Act (BBB) released by House Ways and Means in mid-September. On October 28, 2021, the House Rules Committee released a revised version of the BBB. These changes still need to be voted on by the…

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Section 1031 Like-Kind Exchanges: When They Are the Right Choice

In very simple terms, a like-kind exchange is a tax-deferred transaction that allows one asset to be swapped with another, similar asset without generating a capital gains tax liability from the sale of the first asset. Prior to the Tax Cuts and Jobs Act of 2017 (TCJA), the IRS permitted the exchange of certain personal property, intellectual…

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2021 Update on Tax and Education Credits

Taxpayers who have to write big checks for higher education can see tax savings when filing tax returns next year. If you, your spouse, or your dependents are taking postsecondary coursework, there’s a strong chance a tax benefit may be in your future. The credits available are the American Opportunity Tax Credit (AOTC) and the…

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