Batley CPA Tax & Business Alert January 2023

6 key tax Q&As for 2023

Right now, taxpayers may be more concerned about their 2022 tax bills than about how to handle their personal finances in the new year. However, as they deal with their annual tax filing, it’s a good idea to also familiarize themselves with pertinent tax-related amounts that may have changed in 2023. This article poses six key questions about such amounts, including those related to retirement planning and the itemized deduction.

Batley CPA Tax & Business Alert December 2022

What’s your taxpayer filing status?

For many people, December 31 means a New Year’s celebration. However, from a tax perspective, it means thinking about which filing status a taxpayer will use for that year’s tax return. This article reviews the five statuses. A sidebar looks at whether a married person can file as “head of household.”

Batley CPA Tax & Business Alert November 2022

Year-end gifts and the gift tax annual exclusion

Many people want to make gifts of cash and stocks to loved ones during the holidays and at year-end. If properly used, the annual exclusion allows you to give to family members and loved ones and reduce the size of your taxable estate, within limits. This article provides details.

Batley CPA Tax & Business Alert October 2022

Renting out your vacation home? Know the tax implications

What are the tax implications when a taxpayer who owns a vacation home rents it out? The answer depends on various factors, such as the amount of time rented out and the number of days used by the owner. The calculation of taxable income can be complex. This article explains.

Batley CPA Tax & Business Alert September 2022

Offset nursing home costs with possible tax breaks

Long-term care — including nursing home care — is expensive. Generally, tax issues aren’t top of mind when someone enters a nursing home. But for those who pay the bills, there may be tax breaks that help offset the cost, such as the ability to deduct expenses that exceed a certain level. This article and a sidebar provide details.

Batley CPA Tax & Business Alert August 2022

When is employer-provided life insurance taxable?

Employer-provided life insurance can be a great benefit, with the cost of part of it excluded from an employee’s taxable income. Participating employees need to be aware that this exclusion only applies to the first $50,000 in coverage, and the employer-paid cost of the excess will be reported on the employee’s Form W-2. This is true even if the life insurance is never received. A sidebar reveals how the value of that taxable income is determined.

Batley CPA Tax & Business Alert July 2022

Using alternative energy for business can bring tax benefits

Business owners may be wondering whether alternative energy technologies can help them manage their business energy costs. A valuable federal income tax benefit — in the form of a business energy credit — applies to the acquisition of many types of alternative energy property. The credit is intended primarily for business users of alternative energy. This article provides details.

Batley CPA Tax & Business Alert June 2022

Can you deduct the costs of a self-managed portfolio?

Many taxpayers incur significant investment-related expenses, which might include payment for financial service subscriptions, clerical support and home office maintenance. Under current tax law, these expenses aren’t deductible through 2025 if they’re considered investment expenses to produce income. If they’re considered trade or business expenses, however, they are deductible. This article explains the difference between a trader and an investor. A brief sidebar describes a court case to illuminate that difference.

Batley CPA Tax & Business Alert May 2022

Hiring your minor children for summer jobs

Business owners may be able to hire their minor children this summer and get tax breaks and other nontax benefits. While owners save on payroll taxes and lower some costs, the kids also benefit. They can gain on-the-job experience, learn practical skills and at the same time learn how to manage money. A sidebar notes that earned income can help young workers get an early start on funding a retirement plan.

Batley CPA Tax & Business Alert April 2022

Could you be hit with the Trust Fund Recovery Penalty?

There’s a harsh tax penalty that business owners could have to pay personally if they own or manage a business with employees. It’s called the Trust Fund Recovery Penalty and it applies to the Social Security and income taxes required to be withheld by a business from the wages of its employees. This article looks at the risk and explains how business owners, managers and other involved parties can avoid incurring the penalty.