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Deducting Business Use of a Car
If you use your car in your business and you use it only for that purpose, you may be able to deduct its entire cost of operation. However, if you use the car for both business and personal purposes, you may deduct only the cost of its business use and you must keep records to…
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Tax Law Changes Affect Every Taxpayer
Here’s a brief run-down of the tax changes for 2018. Tax rates were lowered for 2018. There are seven income tax brackets now, ranging from 10 percent to 37 percent. The Standard Deduction nearly doubled over last year. For 2018, the basic standard deduction is $12,000 for singles, $18,000 for heads of household and $24,000…
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During the last few years, Congress has showed renewed interest in examining and improving the operations of the IRS.
The House Ways and Means Subcommittee on Oversight has held several hearings to consider “IRS reform,” and the House passed the Taxpayer First Act of 2018 by a unanimous vote of 414-0 last April.
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Child Tax Credit and Credit for Other Dependents
Child Tax Credit Beginning with Tax Year 2018, you may able to claim the Child Tax Credit if you have a qualifying child under the age of 17 and meet other qualifications. The maximum amount per qualifying child is $2,000. Up to $1,400 of the credit can be refundable for each qualifying child as the…
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The First Week of March Presents an Opportunity
for new clients to get in to see us. I routinely say there are two basic groups of tax filers; 1) those who want to come in and file as soon as possible, and 2) those who want to put it off as long as possible. The result is a lull or dip in activity…
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Lack of Disclosure of IRS Chief Counsel Legal Advice
Over several decades, the IRS has contested lawsuits seeking public access to various forms of legal guidance. In 2007, it settled a case seeking access to legal advice the Office of Chief Counsel provides to national office program managers known as “Program Manager Technical Advice” (PMTA). Yet the Office of Chief Counsel releases relatively few…
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Constructively Received Income
You are generally taxed on income that is available to you, regardless of whether it is actually in your possession. A valid check that you received or that was made available to you before the end of the tax year is considered income constructively received in that year, even if you do not cash the…
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Married Couples in Business
One of the advantages of operating your own business is hiring family members. However, the employment tax requirements for family employees may vary from those that apply to other employees. How spouses earn Social Security benefits A spouse is considered an employee if there is an employer/employee type of relationship, i.e., the first spouse substantially…
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Obtaining Answers to Tax Law Questions
In 2014, the IRS implemented a policy under which it is only answering tax-law questions during the filling season (January through mid-April). It also narrowed the scope of questions it is answering during the filing season by expanding its list of “out-of-scope” topics. The IRS justified these restrictions as a cost-saving step. The National Taxpayer…
