No one wants to take a loss on an investment, but it happens to the best. Fortunately, the government may allow you to deduct your losses on your tax return. Some taxpayers use strategically this write-off to lower their taxable income with a technique called tax loss harvesting. With tax laws constantly changing, it’s important […]
Category: Tax Tips
How Does the EV Tax Credit Work for 2023?
Buying a new vehicle is a large investment that requires careful consideration. Luckily, many electric vehicle buyers can earn an EV tax credit of up to $7,500 on their purchase starting in 2023, thanks to the recently-passed Inflation Reduction Act. The US government offers a federal electric vehicle tax credit to encourage individuals to purchase […]
Capital Loss Tax Deductions for Real Estate
Real estate looks like an attractive investment in today’s high inflation environment, but it comes with risks. If your investment property loses value, you end up with a capital loss. Nobody wants to lose money, but capital losses can provide valuable tax relief when you need it most. However, capital loss benefits have limitations, and […]
IRS Postpones $600 Threshold on Form 1099K Reporting
For 1099k 2022, third-party payment processors were scheduled to issue 1099-Ks if you received over $600 in payments. Form 1099-K reports the payments you receive from third-party processors such as Venmo or PayPal. However, the IRS recently announced it would postpone the new rule by one year. Now, it’s set to take effect in 2023. […]
America’s Progressive Tax System: Explained
The U.S.’s progressive tax system charges higher tax rates for higher earners. This system is designed to ensure taxpayers of various income levels pay a fair tax rate at the end of the year. In this article, we’ll explain how the progressive tax system works and show how tax brackets can influence your effective tax […]
What to Know About Filing 2023 Taxes
With a new year comes new changes to the tax rules. We’ve outlined some of the most impactful items on your 2023 taxes. Note that since the year has just begun, there may be additional changes throughout the year. Income Tax Brackets Changes Tax brackets change each year to reflect inflation. For example, the […]
Bookkeeping Rules for Prepaid Expenses
Expenses on the cash basis of accounting are simple. For example, if you write a check or charge something on your credit card, you’ve created an expense. But if your business uses the accrual basis of accounting, determining when you get to deduct an expense is more complicated. When you pay expenses for future accounting […]
IRS Underpayment Penalties and How to Avoid Them
Did you know that if you owe the IRS money and you don’t pay them by the deadline, they will charge you a penalty? In this blog post, we’ll explain the possible penalties you may be charged for underpaying your taxes, and we’ll also give you some tips on how to avoid them. What is […]
New IRS Tax Brackets for 2023: Explained by Pros
In a season when inflation is eating away at incomes, there may be some relief in the new guidelines issued by the U.S. Internal Revenue Service (IRS) for 2023 filings. In addition to new tax brackets, 2023 also promises revisions in minimum tax, exemptions, credits, and limitations that may benefit taxpayers. Lower taxable incomes and […]
Top-7 Tips for Smooth Corporate Accounting
Businesses of all sizes need reliable accounting and bookkeeping systems to track their finances, including corporations. Whether it’s a Wall Street PubCo or a small C-Corp, every corporate business’s accounting practices must comply with regulations. However, corporate accounting doesn’t have to be complicated. Your corporate accounting system is well on its way to success if […]