Finance · Taxes
how is the qualified business income deduction phased out for high earners?
The Qualified Business Income deduction is a 20 percent deduction for qualifying pass-through business income, but it is limited for high earners through a combination of income thresholds, a wage
which business assets qualify for bonus depreciation under current tax law?
Bonus depreciation allows businesses to immediately deduct a large percentage of the cost of certain capital assets in the year those assets are placed in service, accelerating tax benefits and
when does a remote seller establish sales tax nexus in a state?
Remote sellers establish sales tax nexus in a state when their activities meet the state's legal test for sufficient connection, shifting the duty to collect and remit sales tax from
how does tax basis adjust after inheriting appreciated property?
How the basis is determined
When you inherit property, the tax basis usually resets to the property's fair market value at the decedent's date of death, a rule that effectively creates
what tax forms are required for rental property owners annually?
According to Publication 527 by the Internal Revenue Service, owners must annually report rental income and allowable expenses on federal tax returns. For most individual landlords the primary federal filing
who is responsible for withholding payroll taxes for independent contractors?
Workers classified as independent contractors are generally responsible for withholding and remitting their own payroll-related taxes. The Internal Revenue Service Author Internal Revenue Service explains that independent contractors pay self-employment
which documentation proves eligibility for the earned income tax credit?
The Earned Income Tax Credit (EITC) requires taxpayers to document identity, earned income, filing status, and any qualifying children. The main authoritative guidance is IRS Publication 596 authored by the
when should taxpayers file amended returns to claim missed deductions?
Taxpayers should file an amended return to claim missed deductions when doing so will recover an overpayment within the allowable federal time limits and when documentation supports the change. Guidance
how does the alternative minimum tax impact high-income taxpayers?
The federal Alternative Minimum Tax functions as a parallel tax calculation designed to ensure certain taxpayers pay at least a minimum amount of tax. Howard Gleckman, Tax Policy Center, explains
what are tax consequences of converting a traditional ira to roth?
Converting a pre-tax retirement account into a Roth changes when and how retirement savings are taxed and can alter eligibility for benefits. The Internal Revenue Service explains that pre-tax contributions