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Maximizing Tax Benefits: The Business Use of a Vehicle

An often-overlooked area to optimize financial strategies is the business use of a vehicle, which can offer significant tax advantages if managed correctly.

What constitutes qualifying business use? Generally, the use of a vehicle for business-related activities, such as transportation to client meetings, travel to business-related events, and delivery of goods or services, can be considered for tax purposes.

Embrace a Fresh Start: Welcome to the New Tax Season!

As the calendar resets and a new year is upon us, it’s time to gear up for the upcoming tax season.

This period brings proactive planning, organization and informed decision making to navigate tax obligations efficiently.

The IRS will begin accepting electronically filed returns mid-January and the deadline to file will follow on April 15th.

Understanding 1099 Employment

In the evolving American labor market, 1099 employment has become a significant aspect for many working individuals.

This form of employment represents a category of work that differs from traditional full-time employment.

Understanding 1099 employment is crucial for both workers and employers to understand the responsibilities and expectations of both parties. 

Charitable Donations – Cash Contributions 

If you itemize deductions on your tax return, you may be able to include any charitable contributions made during that filing year. Itemizing donations entitles taxpayers to charitable contribution deductions.

Qualifying organizations, typically 501(c)(3), serve the public, providing a valuable service to the community and do not operate for profit. In general, these organizations are either charitable, religious, educational, scientific or literary.

Valuation of a Business

Similar to getting a real estate appraisal or checking the value of your stock, you can determine what your business is worth by having a valuation prepared by an accounting professional. A business valuation is the analytical process of determining the current or projected worth of a company. It can help determine where a company stands in the market.

There are a number of reasons why one would be interested in getting their business valuated…

What to do in the event of tax identity theft?

Tax identity theft occurs when an identity thief files a fraudulent return using a stolen taxpayer’s social security number to claim the victims tax refund. The thief would use the victims personal and consumer information to file the forged tax return, usually early in the filing season before the victim files themselves. This way, the scammer would likely receive the victims refund before the IRS processes the real filing. They might invent fake wages to submit the information electronically. 

Married Filing Jointly vs Separately

Married taxpayers, who were married on the last day of the tax year, have two filing status options when it’s time to file their annual tax return. The best choice varies depending on each couple’s individual needs.

Married filing jointly offers lower tax rates, but filing separately may be more beneficial depending on the couple’s individual situations.

So, which filing status is best for you? 

Foreign Tax Credit

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

Secure Act 2.0 and 401K Enrollment

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…

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