Question: What’s new for 2024, 2025?
Answer: The following are some of the tax changes for 2024. Maximum net earnings. The maximum net self-employment earnings subject to the social security part of the self-employment tax is $168,600 for 2024. There is no maximum limit on earnings subject to the Medicare part. Bonus depreciation. The bonus depreciation deduction under section 168(k) continues […]
Question: What is the IRS Form 8621?
Question: What is the IRS Form 8621? Answer: The IRS Form 8621 is a two-function form that must be filed by US persons who own an interest in a Passive Foreign Investment Company. The Form both (1) collects information and (2) calculates what is in most cases a special (unfavorable) rate of tax on the […]
Question: If a house is jointly owned by 4 people, and they all use it as principal residence, do each one get 250,000 tax exemption?
Answer: As long as each unmarried co-owner satisfies the two-out-of-five-year ownership and use tests, each gets to exclude up to $250,000 of his or her share of the gain from the sale. (Married couples who file jointly can exclude up to $500,000 of their gain). From the IRS at: https://www.irs.gov/pub/irs-pdf/p523.pdf
Question: Must Small Entities File New Beneficial Ownership Information Reports in 2024?
Answer:
Question: I need some help understanding how I’m supposed to best save money by using the SEP IRA-Solo 401K and properly do it?
Answer: Contributions How much can I contribute to my SEP? The contributions you make to each employee’s SEP-IRA each year cannot exceed the lesser of: These limits apply to contributions you make for your employees to all defined contribution plans, which includes SEPs. Compensation up to $330,000 in 2023 ($305,000 in 2022; $290,000 in 2021; […]
IRS helps taxpayers by providing penalty relief on nearly 5 million 2020 and 2021 tax returns; restart of collection notices in 2024 marks end of pandemic-related pause
WASHINGTON — In a major step to help people who owe back taxes, the Internal Revenue Service today announced new penalty relief for approximately 4.7 million individuals, businesses and tax-exempt organizations that were not sent automated collection reminder notices during the pandemic. The IRS will be providing about $1 billion in penalty relief. Most of […]
Beneficial Ownership Information Registry: This is required for all the business owners to register on FINCEN. MUST DO
By Federal Tax Update StaffThe Financial Crimes Enforcement Network’s BOI reporting portal is now open for business, accordingto a news release. Reports can be filed at https://www.fincen.gov/boiThe Corporate Transparency Act (CTA) requires many entities doing business in the US to reportinformation about the individuals who ultimately own or control them (beneficial owners). Beneficialowner information (BOI) […]
Small Business Quickfinder Handbook 2020 Tab M—Starting a New BusinessStart-up ConsiderationsCorporate Considerations
START-UP CONSIDERATIONS Checklist for Creating a Business Entity 1) Consult an accountant. Compare the tax aspects of entities. See the Entity Comparison Chart.2) Choose a business entity.3) Consult an attorney regarding federal and state laws governing creation, ownership, andoperation of the entity.4) Draft and execute agreement among principals. Target the business start date. See Pre-Incorporation/LLC/Partnership […]
Transformation work continues: IRS expands Business Tax Account access to S corporations, partnerships; adds ability to view business tax transcripts
IR-2023-243, Dec. 18, 2023WASHINGTON — As part of continuing transformation work, the Internal Revenue Service today announced the launch of the second phase of a new online self-service tool for businesses that expands the business tax account capabilities and eligible entity types.As a result, individual partners of partnerships and individual shareholders of S corporation businesses […]
Beneficial Ownership Information Registry Now Accepting Reports
By Federal Tax Update StaffThe Financial Crimes Enforcement Network’s BOI reporting portal is now open for business, accordingto a news release. Reports can be filed at https://www.fincen.gov/boi.The Corporate Transparency Act (CTA) requires many entities doing business in the US to reportinformation about the individuals who ultimately own or control them (beneficial owners). Beneficialowner information (BOI) […]