Category: Deductions

Is Work Clothing Deductible?

9/14/2022

Can you deduct clothes as a business expense? In some cases, you can deduct the amount you spent on the purchase and upkeep of work clothes. First, however, you must check that your purchase meets two requirements:

You must wear it as a condition of your employment.
The clothes cannot be suitable for everyday wear.

IRS Clarifies Deductible Expenses

1/29/2020

The IRS is offering some updated rules as guidance for deductible expenses that may have been murky as a result of the Tax Cuts and Jobs Act. The rules being updated involve using optional standard mileage rates when figuring the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes, among other issues.

Can You Still Deduct Meal Expenses?

2/27/2019

The Tax Cuts and Jobs Act made changes to deductions for meals. In fact, it eliminated the deduction for any expenses related to activities that used to be considered entertainment, amusement or recreation.

Padding Your Tax Deductions? The Consequences Are Serious

2/13/2019

"In this world, nothing can be said to be certain, except death and taxes" is a quote often attributed to Benjamin Franklin. With that in mind, it's best to be prepared, at least financially, for taxes and tax season each year.

IRS Gives More Guidance on Sec. 199A Deductions

1/30/2019

The new QBI deduction, created by the 2017 tax reform law, allows many owners of sole proprietorships, partnerships, S corporations, trusts, or estates to deduct up to 20 percent of their qualified business income. Eligible taxpayers can also deduct up to 20 percent of their qualified real estate investment trust (REIT) dividends and publicly traded partnership income.

Medical and Dental Expenses: What Can You Deduct?

1/2/2019

Can you deduct medical and dental expenses? That's a complicated question. To start with, your deductions must exceed 7.5 percent of your adjusted gross income. And they have to fall into an IRS-approved category.

IRS Issues Guidance on Meal and Entertainment Deductions

11/7/2018

The Internal Revenue Service has issued guidance on the business expense deduction for meals and entertainment following law changes in the Tax Cuts and Jobs Act.

The 2017 TCJA eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation.

How to Manage the Home Office Deduction

8/1/2018

If you use part of your home for business, you may be able to deduct expenses for the business use of your home. The home office deduction is available for homeowners and renters, and applies to all types of homes. There are basically two methods for deducting the portion you use for business: the simplified method and the regular method.

Yes, Home Equity Loans May Still Be Deductible

4/25/2018

Contrary to early reports, the Tax Cuts and Jobs Act of 2017 allows taxpayers who buy, build or substantially improve their homes using either a home equity loan, home equity lines of credit (HELOC) or second mortgages to deduct interest on the loans. That's the good news. But if you take out the loan to pay for personal living expenses—credit card debt, for instance—you can't deduct the interest from your taxes.

Get a Tax Break From Past-year Losses

11/22/2017

A net operating loss refers to a tax year in which a business's allowable tax deductions exceed its taxable income. In simpler terms, you had more expenses than you actually had revenue. However, there is a loophole: U.S. Code IRC § 172 allows businesses to use that loss as a carryover toward future tax years or as a carryback to recoup money from previous tax years. Calculating and taking advantage of an NOL can be hugely beneficial to your business if you need money fast. An NOL can offer you a quick tax refund, but you must be up to date on the rules and regulations of this tax relief.

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