AFS Blog
Use These Tax Strategies and Elections to Increase your 2024 Tax Deductions
These strategies and a few little-known elections can save you money on your 2024 tax returns and/or in future years Make a deductible IRA contribution of up to $7000 per person ($8000 if over age 49) by April 15th, 2025 for 2024 and deduct it on your 2024 tax return....
Year-End Tax Strategies for Individuals
Add a side or small business. Some personal expenses can be converted to business deductions. This often reduces taxable income in the first phase of business growth. Most important is to actually start your business. If you don't have an actual business,...
WHEN MORTGAGE DEBT ANALYSIS SEEMS WRONG
Once or twice a year, a tax client comes to me exasperated because their mortgage broker is not including all of their income in their debt analysis. The most recent situation was one where the broker didn't understand that a shareholder of an S Corp will typically...
Tax Myth – the 1 capital gain exclusion once every 2 years myth
Everyone knows that you can only use the capital gain exclusion once every 2 years, right? Wrong. Qualified taxpayers generally can only use the whole exclusion once every 2 years, but in some cases, you can take a partial exclusion within the 2 year period after you...
Tax Myth- the $500,000 maximum gain exclusion myth
MYTH - The maximum capital gain exclusion on the sale of a personal residence is $500,000. Everyone knows that the maximum deferred capital gain on the sale of a home is $500,000, right? Well, actually that's wrong. That's the maximum excludable gain for a married...
Tax Credits for Electric Vehicles-An Introduction
The new clean vehicle tax credits along with the commercial clean vehicle tax credits can be used for 'qualifying' fully electric cars, hybrids and fuel cell vehicles. There are 4 ways to benefit from these credits for EV's placed in service in 2023 or later: Purchase...
Crypto Currency Update 2023
Some crypto currencies lost a lot of their value in 2022 and 2023 while a smaller number have recovered some losses in 2023. This update is a review on how to handle both gains and losses on your tax returns and also discusses a couple of new IRS announcements...
THE MOST COMMON DEDUCTIONS THAT MOST BUSINESSES HAVE
Here are deductions we see in nearly every business return we prepare. They are so common that I usually ask the taxpayer if they’ve forgotten something when I don’t see expenses in these categories. Business meals – for 2022 the deduction is back down to 50%. The...
Common Mistakes in Business Startups
New businesses make mistakes that can cost them money, sometimes a lot of money. Here are the most common ones I see every year. Lack of good records – this leads to multiple errors, such as missing deductions, problems with cash flow, difficulties or...
DO YOU HAVE COLLEGE SAVINGS PLAN MONEY LEFT OVER? HERE’S A USE FOR IT
Now you can do something with the college savings plan money that wasn’t spent on education. Maybe your child or grandchild didn’t choose college. Or maybe they received a scholarship. There’s an opportunity here to put that money back into your own...
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