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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, […]
The Whalen Group Tax-Savings Tips
October 2023 IRS Issue Number: 2023-13 What the IRS is doing and what you can do to avoid Employee Retention Credit scams The IRS shared new steps the agency is taking to prevent honest taxpayers from falling victim to Employee Retention Credit (ERC) scams. The IRS continues to warn small businesses about aggressive promoters encouraging […]
Balance of 2023 Tax Calendar
September 2023 Balance of 2023 Tax Calendar September 15th Corporations: File calendar year Form 1120S if you timely requested a 6-month extension. Corporations: Deposit the third installment of your 2023 estimated tax. Partnerships: File calendar year Form 1065 if you timely requested a 6-month extension. Withholding Agent: File calendar year Form 1042 if you […]
How Important Is It To Keep A Mileage Log For Your Business?
In most court cases, taxpayers lose vehicle expense deductions because they cannot present a credible business mileage log. The IRS code forbids deductions for vehicle expenses when taxpayers cannot prove the mileage and provide an adequate record. Failing to maintain such records could lead to far fewer deductions than the actual business mileage, potentially resulting […]
Tax Credits for Electric Vehicles: The Latest from the IRS
June 2023 Tax Credits for Electric Vehicles: The Latest from the IRS The IRS recently issued new guidance on electric vehicles. There are four ways you can potentially benefit from a federal tax credit for an EV you place in service in 2023 or later: Purchase an EV, and claim the clean vehicle credit. Lease […]
How To Contribute to The Mega-Backdoor Roth
May 2023 How To Contribute to The Mega-Backdoor Roth The “mega-backdoor Roth” is a retirement saving strategy that technically allows individuals to make much larger contributions to certain workplace retirement accounts than the annual elective deferral limits. To use a mega-backdoor Roth, the following must exist: The client must be eligible to contribute to a […]
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 […]