Federal Tax Deductions – DougFreemanCPA.com

Coordinating Sec. 179 tax deductions with bonus depreciation

Leave a Comment / Business Deductions, Depreciation, Depreciation Deduction (Section 179), Federal Tax Deductions, Small Business, Small Business Owners, Small Business Tips / Douglas Freeman

Your business should generally maximize current-year depreciation write-offs for newly acquired assets. Two federal tax breaks can be a big help in achieving this goal: first-year Section 179 depreciation deductions and first-year bonus depreciation deductions. These two deductions can potentially allow businesses to write off some or all of their qualifying asset expenses in Year […]

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4 ideas that may help reduce your 2023 tax bill

Charitable Contributions, Federal Tax Deductions, Retirement, Small Business, Small Business Owners, Small Business Tax Tips, Stocks, Taxes 2023 / Douglas Freeman

If you’re concerned about your 2023 tax bill, there may still be time to reduce it. Here are four quick strategies that may help you trim your taxes before year-end. 1. Accelerate deductions and/or defer income. Certain tax deductions are claimed for the year of payment, such as the mortgage interest deduction. So, if you

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A company car is a valuable perk but don’t forget about taxes

Business Expenses, de mimimis Fringe Benefits, Employees, Federal Tax Deductions, Federal Taxes, Fringe Benefits For Employees, Tax Cuts and Job Acts (TCJA), Tax Deduction, Vechicle / Douglas Freeman

One of the most appreciated fringe benefits for owners and employees of small businesses is the use of a company car. This perk results in tax deductions for the employer as well as tax breaks for the owners and employees driving the cars. (And of course, they enjoy the nontax benefit of using a company

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What types of expenses can’t be written off by your business?

Business Deductions, Federal Income Tax, Federal Tax Deductions, Internal Revenue Service (IRS), Small Business Tax Tips, Small Business Tips, Tax Deduction / Douglas Freeman

If you read the Internal Revenue Code (and you probably don’t want to!), you may be surprised to find that most business deductions aren’t specifically listed. For example, the tax law doesn’t explicitly state that you can deduct office supplies and certain other expenses. Some expenses are detailed in the tax code, but the general

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What are the tax implications of winning money or valuable prizes?

Federal Income Tax, Federal Tax Deductions, Gambling Taxation, Itemized Deduction, Tax Record Retention / Debbie Davis

If you gamble or buy lottery tickets and you’re lucky enough to win, congratulations! After you celebrate, be aware that there are tax consequences attached to your good fortune. Winning at gambling. For tax purposes, it doesn’t matter if you win at the casino, a bingo hall or elsewhere. You must report 100% of your

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Can you deduct student loan interest on your tax return?

AGI (Adjustable Gross Income), Deductions, Federal Tax Deductions, Student Loans, Tax Deduction, Tax Return / Douglas Freeman

The federal student loan “pause” is coming to an end on August 31 after more than three years. If you have student loan debt, you may wonder whether you can deduct the interest you pay on your tax return. The answer may be yes, subject to certain limits. The deduction is phased out if your

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Answers to your questions about 2023 limits on individual taxes

2022 Tax Return, 401K, Domestic Workers, Federal Gift Tax, Federal Tax Deductions, FICA, Gift and Estate Tax, Inflation, IRA, Itemized Deduction, Tax Deduction / Douglas Freeman

Many people are more concerned about their 2022 tax bills right now than they are about their 2023 tax situations. That’s understandable because your 2022 individual tax return is due to be filed in 10 weeks (unless you file an extension). However, it’s a good time to familiarize yourself with tax amounts that may have

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How inflation will affect your 2022 and 2023 tax bills

Deductions, Federal Gift Tax, Federal Tax Deductions, Federal Taxes, Flexable Spending Accounts, Income Tax, Individual Income Tax, Inflation, Medical Deductions, Retirement / Douglas Freeman

The effects of inflation are all around. You’re probably paying more for gas, food, health care, and other expenses than you were last year. Are you wondering how high inflation will affect your federal income tax bill for 2023? The IRS recently announced next year’s inflation-adjusted tax amounts for several provisions. Some highlights. Standard deduction.

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Small Businesses: It may not be not too late to cut your 2019 taxes

Assets, Business Deductions, Business Equipment, Business Income Tax, Deductions, Equipment, Federal Income Tax, Federal Tax Deductions, Simplified Employee Pension (SEP), Small Business, Tax Planning / Douglas Freeman

Don’t let the holiday rush keep you from taking some important steps to reduce your 2019 tax liability. You still have time to execute a few strategies, including 1. Buying assets. Thinking about purchasing new or used heavy vehicles, heavy equipment, machinery or office equipment in the new year? Buy it and place it in

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The tax implications if your business engages in environmental cleanup

Environmental Tax Deductions, Federal Tax Deductions / Douglas Freeman

If your company faces the need to “remediate” or clean up environmental contamination, the money you spend can be deductible on your tax return as ordinary and necessary business expenses. Of course, you want to claim the maximum immediate income tax benefits possible for the expenses you incur. These expenses may include the actual cleanup

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