The IRS has issued updated deprecation limits. For luxury passenger cars, SUVs, trucks, and vans placed in service in 2021; the depreciation caps are as follows: $10,200 for the first year without bonus depreciation $18,200 for the first year with bonus depreciation $16,400 for the second year $9,800 for the… Read More»
What are the Advance Child Tax Credit payments? For the year 2021, half of the annual Child Tax Credit will be received in the form of 6 monthly cash payments from July 2021 to December 2021. How do I receive the Advance Child Tax Credit Payments? File your 2020 tax… Read More»
Under the Tax Cuts and Jobs Act, only individuals who are self-employed are allowed to deduct expenses that relate to their home office.
Required Minimum Distributions are back in 2021. Distributions must be made by December 31, 2021. Business meals provided by restaurants are 100% deductible for 2021 and 2022. Meals purchased from an establishment that sells primarily prepackaged foods or beverages not requiring immediate consumption are not eligible. Also, meal purchases from… Read More»
Employers with an average of 50 full-time and full-time equivalent employees or less are small businesses and not required to provide group health insurance covered to their employees in 2021. Small Employers (average of 50 or less full-time employees) May be eligible to buy coverage through the Small Business Health… Read More»
Beginning in 2019, the Tax Cuts and Jobs Act has eliminated the penalty imposed on individuals who are not covered by a health care plan that provides at least minimum essential coverage, as outlined in the Affordable Care Act. Be aware of state mandates, however. Some states are enacting their… Read More»
The value of a business is often determined by the expected future cash flows. Attributes that also help determine the value of a business include: History of cash flows Growth potential The age of the business Market share Barriers to entry Competition Location Risk of the industry Financial condition Regulatory… Read More»
After 2019, the Section 179 limit is $1,000,000, for qualified property. 100% Bonus depreciation expires December 31, 2022. These deductions may be limited for state income tax purposes.
The estate tax exemption is $11.70 and $11.58 million for 2021 and 2020 respectively. The annual exclusion for gifts is $15,000 for both 2021 and 2020.
Several common tax “things” to be aware of include: The FICA wage base for 2021 is $142,800. The standard deduction amounts for 2021 are as follows: Married filing joint – $25,100 Head of household – $18,800 Single – $12,550 An additional $1,350 standard deduction is available for taxpayers who are… Read More»
