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2023 Year-End Planning

BUSINESS TAX ISSUES Prepay Expenses Using the IRS Safe Harbor You have to thank the IRS for its tax-deduction safe harbors. IRS regulations contain a safe-harbor rule that allows cash-basis taxpayers to prepay and deduct qualifying expenses up to 12 months in advance without challenge, adjustment, or change by the IRS. Under this safe harbor, […]

Is Catching a Ball Estimated at $2 Million A Taxable Event?

When Aaron Judge’s record-breaking 62nd home run ball was snagged by Cory Youmans, he may have captured a plus $2 million payday according to experts in sports memorabilia.  So with that in mind, when does he owe tax on this windfall, and at what rate? Possible scenarios: He keeps the ball until he dies.  No […]

YEAR-END TAX PLANNING FOR 2021

November 2021 BUSINESS TAX ISSUES Prepay Expenses Using the IRS Safe Harbor   You just have to thank the IRS for its tax-deduction safe harbors.  IRS regulations contain a safe-harbor rule that allows cash-basis taxpayers to prepay and deduct qualifying expenses up to 12 months in advance without challenge, adjustment, or change by the IRS, (IRS […]

YEAR-END TAX PLANNING FOR 2020

BUSINESS TAX ISSUES   Prepay Expenses Using the IRS Safe Harbor   You just have to thank the IRS for its tax-deduction safe harbors.  IRS regulations contain a safe-harbor rule that allows cash-basis taxpayers to prepay and deduct qualifying expenses up to 12 months in advance without challenge, adjustment, or change by the IRS, (IRS Reg. […]

THE WHALEN GROUP YEAR-END TAX PLANNING FOR 2019

BUSINESS TAX ISSUES Prepay Expenses Using the IRS Safe Harbor   You just have to thank the IRS for its tax-deduction safe harbors.  IRS regulations contain a safe-harbor rule that allows cash-basis taxpayers to prepay and deduct qualifying expenses up to 12 months in advance without challenge, adjustment, or change by the IRS, (IRS Reg. 1.263(a)-4(f).  […]

YEAR-END TAX PLANNING 2018

THE WHALEN GROUP INDIVIDUAL TAX ISSUES Individuals who are 70 ½ years of age or older in this calendar year must take a Required Minimum Distribution (RMD) from their IRA by December 31st.  There is a 50% penalty tax for forgetting this provision.  The only exception to this rule is the first year you turn […]