Tax credits and deductions can mean more money in a taxpayer’s pocket. Here are a few facts about credits and deductions that help taxpayers with their year-round tax planning:
Teachers and other educators should remember that they can deduct certain unreimbursed expenses such as classroom supplies, training, and travel — even when schools switched to hybrid or remote learning models during the pandemic last spring. Deducting these expenses helps reduce the amount of tax owed when filing a tax return.
Employees and small business owners often have questions about what to do with an employee’s home – and what the tax consequences might be – when they move to a new job location. Here are some answers:
Have you missed partying and having business meals with your prospects, customers, and employees? Well, get ready to start again. Soon, COVID-19 will be behind us, and that could be just a few short months away! To help you get …
You take Bill, your best customer, to the local country club and treat him to 18 holes of golf. The golf produces a zero deduction.
You take your employees and their spouses and children to the local country club, where they play golf and tennis; swim; and enjoy lunch, dinner, and snacks.
The cost of the country club meals and activity produces a 100 percent tax deduction.1
In this article, you will learn the following:
- What it takes to qualify an employee party for the 100 percent deduction
- What types of employee entertainment qualify for this 100 percent deduction
- How tax law defines entertainment that’s primarily for the benefit of employees
Many parents are looking for ways to save for their child’s education, and a 529 Plan is an excellent way to do so. Even better is that thanks to the passage of tax reform legislation in 2017, 529 plans are now available to parents wishing to save for their child’s K-12 education as well as college (two and four-year programs) or vocational school.
If you’re self-employed and use your car for business, you can deduct certain business-related car expenses. There are two options for claiming deductions:
Beginning January 1, 2021, and extending through December 31, 2022, businesses can claim 100% of their food or beverage expenses paid to restaurants as long as the business owner (or an employee of the business) is present when food or beverages are provided, and the expense is not lavish or extravagant under the circumstances.
As a quick reminder, the purchase of personal protective equipment, such as masks, hand sanitizer, and sanitizing wipes, for the primary purpose of preventing the spread of coronavirus are deductible medical expenses.
If you donate a car to a qualified charitable organization and intend to claim a deduction, you should be aware of the special rules that apply to vehicle donations.