Tax Planning Archives | Page 2 of 15 | Hutchinson and Bloodgood LLP

Healthy savings: How tax-smart HSAs can benefit your small business and employees

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December 2, 2024

As a small business owner, managing health care costs for yourself and your employees can be challenging. One effective tool to consider adding is a Health Savings Account (HSA). HSAs offer a range of benefits that can help you save on health care expenses while providing valuable tax advantages. You may already have an HSA. […]

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Tax Planning

How inflation will affect your 2024 and 2025 tax bills

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November 27, 2024

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Inflation can have a significant impact on federal tax breaks. While recent inflation has come down since its peak in 2022, some tax amounts will still increase for 2025. The IRS recently announced next year’s inflation-adjusted amounts for several provisions. Here are the highlights. Standard deduction. What does an increased standard deduction mean for you? A […]

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Tax Planning

When can you deduct business meals and entertainment?

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November 25, 2024

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You’re not alone if you’re confused about the federal tax treatment of business-related meal and entertainment expenses. The rules have changed in recent years. Let’s take a look at what you can deduct in 2024. Current law The Tax Cuts and Jobs Act eliminated deductions for most business-related entertainment expenses. That means, for example, that […]

deductions, entertainment, meals

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Tax Planning

Get tax breaks for energy-saving purchases this year because they may disappear

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November 19, 2024

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The Inflation Reduction Act (IRA), enacted in 2022, created several tax credits aimed at promoting clean energy. You may want to take advantage of them before it’s too late. On the campaign trail, President-Elect Donald Trump pledged to “terminate” the law and “rescind all unspent funds.” Rescinding all or part of the law would require action […]

energy, savings, tax

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Tax Planning

Unlocking the mystery of taxes on employer-issued nonqualified stock options

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November 15, 2024

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Employee stock options remain a potentially valuable asset for employees who receive them. For example, many Silicon Valley millionaires got rich (or semi-rich) from exercising stock options when they worked for start-up companies or fast-growing enterprises. We’ll explain what you need to know about the federal income and employment tax rules for employer-issued nonqualified stock […]

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Tax Planning

The nanny tax: What household employers need to know

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November 5, 2024

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Hiring household help, whether you employ a nanny, housekeeper or gardener, can significantly ease the burden of childcare and daily chores. However, as a household employer, it’s critical to understand your tax obligations, commonly called the “nanny tax.” If you hire a household employee who isn’t an independent contractor, you may be liable for federal […]

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Tax Planning

How your business can prepare for and respond to an IRS audit

October 14, 2024

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The IRS has been increasing its audit efforts, focusing on large businesses and high-income individuals. By 2026, it plans to nearly triple its audit rates for large corporations with assets exceeding $250 million. Under these plans, partnerships with assets over $10 million will also see audit rates increase tenfold by 2026. This ramp-up in audits is part […]

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Tax Planning

IRS Targets Partnership Tax-Reduction Tactic

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October 9, 2024

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The IRS recently announced the launch of a new multistage regulatory initiative intended to close what it calls a “major tax loophole exploited by large, complex partnerships.” The IRS’s actions are prompted by its belief that some partnerships are using transactions with related parties to improperly slash their tax bills. Tactic in the IRS Crosshairs The […]

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Tax Planning

Unlock your child’s potential by investing in a 529 plan

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October 8, 2024

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If you have a child or grandchild planning to attend college, you’ve probably heard about qualified tuition programs, also known as 529 plans. These plans, named for the Internal Revenue Code section that provides for them, allow prepayment of higher education costs on a tax-favored basis. There are two types of programs: Prepaid plans, which allow […]

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Tax Planning

Can homeowners deduct seller-paid points as the real estate market improves?

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October 1, 2024

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The recent drop in interest rates has created a buzz in the real estate market. Potential homebuyers may now have an opportunity to attain their dreams of purchasing property. “The recent development of lower mortgage rates coupled with increasing inventory is a powerful combination that will provide the environment for sales to move higher in […]

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