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Tax Saving Tips 2022 Year-End Planning

Tax Saving Tips 2022 Year-End Planning   December 2022 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, […]

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 […]

Estate Taxes and Planning for The changes to Come

Currently, there are estate tax credits that will shelter your estate from tax of $12.06 Million of estate valuation and that is per spouse. Most taxpayers are not affected by estate taxes as only about 1% of Americans have an estate of $10 million or more, however, in 2026 that changes. The exemption goes back […]

Claim Your 2020 and 2021 ERC Now (Yes, in 2022)

During much of 2020 and 2021, you may have qualified for the Employee Retention Credit (ERC). Lawmakers created this tax credit in response to the COVID-19 pandemic. With the ERC, you found (or could find) tax credits of up to $26,000 per employee. That’s a lot. With 10 employees, that’s $260,000. Key point. If you […]

Self-Employment Tax Basics July 2022

July 2022 Self-Employment Tax Basics If you own an unincorporated business, you likely pay at least three different federal taxes. In addition to federal income taxes, you must pay Social Security and Medicare taxes, also called the self-employment tax. Self-employment taxes are not insubstantial. Indeed, many business owners pay more in self-employment taxes than in […]

Client Tax Tips Letter June 2022

THE WHALEN GROUP Tax-Saving Tips June 24, 2022 Alert: A Massive New FinCEN Filing Requirement Is Coming Do you own a corporation, limited liability company (LLC), limited partnership, limited liability partnership, limited liability limited partnership, or business trust? Or are you planning to form one of these entities? If so, be alert. There’s a new […]

Tax Savings Tips Letter May 2022

THE WHALEN GROUP, INC. Tax-Saving Tips May 2022 Donor-Advised Funds: A Tax Planning Tool for Church andCharity Donations Do you give money to 501(c)(3) charities? Do you get a tax benefit from those donations? Recent changes in the tax code have done much to destroy your benefits from church and other tax-deductible 501(c)(3) donations. But […]

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 […]

TAX TIP LETTER – PRIMARY HOME SALE

Dear Client:                                                                                                            October 21, 2021 The $250,000 ($500,000, if married) home sale gain exclusion break is one of the great tax-saving opportunities. Unmarried homeowners can potentially exclude gains up to $250,000, and married homeowners can potentially exclude up to $500,000. You as the seller need not complete any special tax form to take advantage. To […]

Client Tax Tip Letter September 2021

Save Your Employee Retention Credit In what clearly must have been a mistake, the IRS issued Notice 2021-49 to deny the employee retention credit (ERC) on the wages paid to most C and S corporation owners. According to the IRS: Your corporation can qualify for the ERC on the wages paid to a more than […]