Tax Implications of Taking 529 College Savings Plan Withdrawals

Tax-favored Section 529 college savings plans — also known as qualified tuition programs — have been around long enough that many people are now withdrawing money to pay for school. Qualified withdrawals are always federal-income-tax-free and usually state-income-tax-free, too. However, […]

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Federal Tax News

Company president is assessed a penalty. If an employer withholds taxes from employees but doesn't pay them over to the IRS, the employer may face a harsh penalty. The Trust Fund Recovery Penalty (TFRP) equals 100% of the unpaid tax […]

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Protect Your Assets As You Protect Your Loved Ones

You've worked a lifetime to build your wealth and understandably want to pass much of it to loved ones. Your estate plan, therefore, needs to protect and preserve your assets. This article explores several asset protection strategies, including trusts, liability-limiting business entities and using the gift and estate tax exemption.

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7 Valuable Deductions for Self-Employed Individuals

Did you recently launch a small business venture? Being self-employed brings new — and potentially sizeable — tax-saving opportunities that aren't available to traditional W-2 employees. Here are seven common deductions to consider as you plan for the 2021 tax year. But don't wait until the last minute: Frequently, it requires forethought to implement strategies and collect the appropriate supporting documentation.

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Vacation Home Usage Has Tax Implications

If you want your vacation home to qualify as a rental property for federal income tax purposes, you'll need to limit your personal use. But, as the COVID-19 pandemic lingers on, you may want to increase the time spent at your home-away-from-home, rather than rent it out to others. Here's a summary of the federal income tax rules for vacation homes that are classified as rental properties to help you decide what's right for your situation.

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How Virtual Currency Transactions Affect Your Tax Situation

The IRS wants to know about any virtual currency transactions. However, many taxpayers are surprised to learn that Bitcoin and other forms of virtual currency are considered "property" for tax purposes, requiring you to report taxable gain, income, or loss on every exchange of virtual currency for goods, services, U.S. dollars, or a different virtual currency. Here are the details.

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Federal Tax News

Are you thinking about buying a plug-in electric car or truck? Fortunately, a tax credit is available for qualified vehicles. The base amount of the credit is $2,500 per vehicle. The vehicle must be new and have battery capacity of […]

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Federal Tax News

What's a "restaurant" for tax deduction purposes? A recent tax law provides a 100% business deduction (up from 50%) for food and beverage expenses in 2021 and 2022 as long as they're "provided by a restaurant." The IRS has now […]

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Construction Contractors: Fraud Prevention Starts With You

Every contractor should have protocols in place to prevent fraud perpetrated by workers and external parties. As this article explains, these include segregation of accounting duties, annual audits and robust cybersecurity plans. Construction businesses also must periodically review supplier lists to help protect against vendor fraud.

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Big Changes to the Child Credit for 2021

There's good news for certain parents: For 2021 only, under provisions included in the new American Rescue Plan Act, you may be eligible for a significantly larger tax credit for qualifying children. Though the rules have been significantly liberalized, they're complicated. Here are the basics to help determine whether your family qualifies for this potentially valuable, but temporary, tax change.

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