Our Blog

Your business may gain substantial tax benefits with a cost segregation study, but they’re not right for everyone. Here’s how this strategy can help accelerate depreciation tax deductions on the building that houses your operation.

Have you bought or sold business assets in an M&A deal in 2021 or are in the process of a transaction? If so, you must report the details to the IRS. The tax agency may then compare what both parties report to ensure they match.

Buried in the infrastructure law that was just enacted is a change in the way cryptocurrency transactions are reported to the IRS.

Claiming depreciation deductions for a passenger automobile can involve complex calculations. Here are the basic rules.

Employer-provided life insurance is a coveted fringe benefit. However, if group term life insurance is part of your benefit package, and the coverage is higher than $50,000, there may be undesirable income tax implications.

More than 43 million student borrowers are in debt with an average of $39,351 each, according to the research group EducationData.org. If you have student loan debt, you may wonder if you can deduct the interest you pay. The answer is yes, subject to certain limits. However, the deduction is phased out if your adjusted gross income exceeds certain levels — and they aren’t as high as the income levels for many other deductions.

If your child is fortunate enough to be awarded a scholarship, you may wonder about the tax implications. Fortunately, scholarships (and fellowships) are generally tax free for students at elementary, middle and high schools, as well as those attending college, graduate school or accredited vocational schools. It doesn’t matter if the scholarship makes a direct payment to the individual or reduces tuition.

Many people have seen their home values increase recently. Be aware of the tax implications if you sell your home. If you’re selling your principal residence, you can exclude up to $250,000 ($500,000 for joint filers) of gain, if you meet certain requirements. For example, you must have owned the property for at least 2 years during the 5-year period ending on the sale date. If you sell your main home, and you qualify to exclude up to $250,000/$500,000 of gain, the excluded gain isn’t subject to the 3.8% net investment income tax (NIIT). However, gain that exceeds the exclusion limit is subject to the tax if your modified adjusted gross income is over a certain amount. Questions? Contact us.

For eligible individuals, a Health Savings Account (HSA) offers a tax-favorable way to set aside funds (or have an employer do so) to meet future medical needs. Some of the tax benefits: 1) Contributions are deductible, within limits; 2) Earnings on the funds in the HSA aren’t taxed; 3) Contributions an employer makes aren’t taxed to you; and 4) Distributions to cover qualified medical expenses ar en’t taxed. An eligible employee must be covered by a “high deductible health plan.” For 2021, a high deductible health plan has an annual deductible of at least $1,400 for self-only coverage or $2,800 for family coverage. An individual can contribute $3,600 ($7,200 for a family) to an HSA for 2021.

Studies find that more people are gambling online and sports betting. And there are still more traditional ways to gamble. If you’re lucky enough to win, tax consequences go along with your good fortune. You must report 100% of your winnings as taxable income. If you itemize deductions, you can deduct losses but only up to the amount of winnings. You report winnings as income in the year you actua lly receive them. In the case of noncash prizes (such as a car), this would be the year the prize is received. With cash, if you take the winnings in annual installments, you only report each year’s installment as income for that year. These are just the basic rules. Questions? Contact us.