There are reasons for Medicare to Increase…. Your income is higher. That’s good and we hope your income stays higher. But what if it increase because of an unusual event… can we explain that and get it lowered? Well, yes, kind of and maybe. Check this list. Even if your reason is not on this […]
Category: Income Tax
Wash-Sale Rule and Crypto
Selling securities at a loss, then purchasing substantially identical securities within 30 days prohibits the capital loss write-off. This includes transactions between spouses and closely held corp. Crypto losses are CURRENTLY not considered securities. Therefor the wash-sale rule does not apply. […]
2024 Social Security COLA Increase
Cost of Living Adjustment (COLA) will increase 3.2% for more than 71 million Americans. For more information go to www.ssa.gov It is a good idea to go to www.ssa.gov and make sure the earnings records are correct. When I did it, found 2 missing years. Being that I keep all tax returns I was easily able to provide […]
529 Account to Pay College Debt
Up to $10k distributions from 529 accounts can be used to pay college debt… This is a LIFETIME limit, not an annual limit. 529 distributions exceeding $10k are taxable and subject to !0% penalty. […]
GEORGIA Unborn Heart Beat Detected is Dependent!
In 2022, the Georgia Department of Revenue made changes to the definition of a dependent for the purpose of tax preparation. Georgia House Bill 481 added an unborn child with a detectable heartbeat to the definition of dependent, effective 7/20/22. On Georgia individual income tax returns filed for tax year 2022 where, at any time […]
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2022 Vehicle Mileage Rates
For 2022, the standard mileage rates for cars, vans, pickups or panel trucks) is 58.5 cents per mile driven for business use, up 2.5 cents from the rate for 2021, 18 cents per mile driven for medical, or moving purposes for qualified active-duty members of the Armed Forces, up 2 cents from the rate for […]
2022 Gift Tax
Starting in 2022 the gift tax exclusion is $16,000 per donor in a calendar year. […]
LLC ROADMAP (Operating Business with Rental Activity)
ACCOUNTING (You have TWO businesses) • The bookstore or contracting business (example) is an operating business. Keep revenue and expenses separate from the rental business. This does not mean a separate checking account but it may be easier to maintain records. That is up to you. o The bottom line profit is taxable for income and […]
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Donations for 2020 – new deduction
Nonitemizers can claim an above-the-line deduction max of $300for charitable 2020 cash contributions. Individuals not itemizing Schedule A can take both the standard deductionand a max deduction of up to $300 in cash contributions. This is per return, meaning couples who file jointly can deduct only $300, not $600. The 60%-of-AGI limit on charitable gifts of […]
Mileage Deduction 2020
The 2020 standard mileage rate for business driving falls to 57.5¢ a mile. The mileage allowance for medical travel and military moves declines to 17¢ a mile in 2020. But the charitable driving rate stays put at 14¢ a mile. It’s fixed by law. […]