Did you accrue foreign taxes to a country outside of the US but are subject to US tax on the same income? Did you know that you may be able to qualify for either a credit or a deduction on those taxes? If you meet the following, you might qualify for a Foreign Tax Credit.
-The taxes must be imposed on you
-You must have paid or accrued the tax
-The tax must be the legal and actual foreign tax liability
-The tax must be an income tax
There are two tax types on the money you earn, ordinary tax rates and capital gains tax rates. Capital gains taxes are taxes on the money you’ve earned in your investments, including stocks, bonds, and real estate held for investment. You must report all earnings, but there are ways to minimize the taxes you owe.
What are Capital Gains Taxes?
Capital gains are the profits or the difference between the asset’s price when you bought and sold the investment.
There’s been an update to the original SECURE Act passed in 2019. The original SECURE Act governed how to contribute and withdraw from your IRAs and employer-sponsored retirement accounts.
The SECURE Act 2.0 passed at the end of 2022 and created many changes, especially those that affect employer-sponsored 401K accounts.
Of utmost importance are the requirements for new plans that…
Your CPA is your number one resource for filing your taxes, but there are some things they cannot do (we know, hard to believe!). The IRS protects your privacy and limits what CPAs can do after they’ve filed your taxes.
CPAs are different than accountants. While CPAs are always accountants, it’s not always the other way around. CPAs go through continuing education, are licensed by a governing body, and monitored to ensure they follow all codes of conduct.
Everyone always wants ways to lower their tax liability. It keeps more money in your pocket, making it easier to reach your financial goals.
But you might feel like you’ve minimized your taxes as much as possible with a 401K or IRA, charitable contributions, and itemized deductions, but there’s one more way – a Health Savings Account.
Tax time is almost upon us again, meaning it’s time to look at your finances and see where you can intentionally spend money before the year ends to lower your taxes come April 15th.
It might sound crazy to spend money to lower your taxes, but it’s a great strategy for business owners. Here are five simple ways you can reduce your tax liability this year.
The holiday season is fast approaching and many will soon be thinking about charitable contributions. We’re highlighting charitable contribution deductions and what you should know. Read on for important information.
Each year, the IRS limits how much you can contribute to your tax-deferred retirement accounts. The limits are different for 401K vs. IRAs, as are the tax requirements.
Here’s everything you must know about retirement contributions.
Your home is your pride and joy, and you earn capital gains when it appreciates. This is why many people buy a home versus renting. When you sell your home, the IRS wants its share of the profits earned. But, if the home is your primary residence, meaning you lived there full-time, you may be able to exclude some of your earnings from your taxable income using the primary residence gain exclusion.
Did you know if you earn rental income from a property you own and rent out, you might be eligible for certain tax deductions? The deductions must be for necessary and ordinary expenses to own and maintain the property.
Here are 5 of the most common rental tax deductions you might be able to take.