Ordinary Income Tax – DougFreemanCPA.com

A job loss is bad but the tax implications could make it worse

Federal Taxes, Health Care Insurance, Incentive Stock Options (ISOs), Ordinary Income Tax, Unemployment, Unemployment Tax / Douglas Freeman

Unemployment has been holding steady recently at 3.7%. But there are still some people losing their jobs — particularly in certain industries including technology and media. If you’re laid off or terminated from employment, taxes are likely the last thing on your mind. However, there are tax implications due to your altered employment circumstances. Depending […]

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Key 2024 inflation-adjusted tax amounts for individuals

Federal Income Tax, Federal Taxes, Individual Income Tax, Inflation, Ordinary Income Tax / Douglas Freeman

The IRS recently announced various 2024 inflation-adjusted federal tax amounts that affect individual taxpayers. Most of the federal income tax rate bracket thresholds are about 5.4% higher than for 2023. That means that you can generally have about 5.4% more income next year without owing more to the federal government. Standard deduction. Here are the

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Key 2024 inflation-adjusted tax parameters for small businesses and their owners

Federal Taxes, Inflation, LLC, Ordinary Income Tax, Partnerships, Past-Through Entities, S Corporation, Self Employment Tax, Small Business, Small Business Owners, Small Business Tax Tips, Sole Proprietors / Douglas Freeman

The IRS recently announced various inflation-adjusted federal income tax amounts. Here’s a rundown of the amounts that are most likely to affect small businesses and their owners. Rates and brackets. If you run your business as a sole proprietorship or pass-through business entity (LLC, partnership or S corporation), the business’s net ordinary income from operations

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A tax-smart way to develop and sell appreciated land

(NIIT) Net Investment Income Tax, Captial Gains, Federal Income Tax, Land Owners, Ordinary Income Tax, Real Estate, S Corporation / Douglas Freeman

Let’s say you own highly appreciated land that’s now ripe for development. If you subdivide it, develop the resulting parcels and sell them off for a hefty profit, it could trigger a large tax bill. In this scenario, the tax rules generally treat you as a real estate dealer. That means your entire profit —

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Claiming losses on depreciated or worthless stock

Capital Gains, Capital Losses, Investment, Ordinary Income Tax, Stocks, Tax Savings / Douglas Freeman

Have you bought stock in a company that later dropped in value? While you may prefer to forget such an ill-fated investment, at least you can claim a capital loss deduction on your tax return. Here are the rules that apply when a stock you own is sold at a loss or becomes completely worthless.

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The tax mechanics involved in the sale of trade or business property

Business Income Tax, Business owned Property, Capital Gains, Federal Income Tax, Ordinary Income Tax, Tax Planning / Douglas Freeman

There are many rules that can potentially apply to the sale of business property. Thus, to simplify discussion, let’s assume that the property you want to sell is land or depreciable property used in your business, and has been held by you for more than a year. (There are different rules for property held primarily

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Do you still need to worry about the AMT?

AMT (Alternative Miminum Tax), Federal Income Tax, Federal Taxes, Income Tax, Individual Income Tax, Ordinary Income Tax, Tax, Tax Cuts and Job Acts (TCJA), Tax Deduction, Tax Planning, Tax Savings / Douglas Freeman

There was talk of repealing the individual alternative minimum tax (AMT) as part of last year’s tax reform legislation. A repeal wasn’t included in the final version of the Tax Cuts and Jobs Act (TCJA), but the TCJA will reduce the number of taxpayers subject to the AMT. Now is a good time to familiarize

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