Category: Tax Insights

2023 Dirty Dozen List from IRS The Internal Revenue Service wrapped up the annual Dirty Dozen list of tax scams for 2023 with a reminder for taxpayers, businesses and tax professionals to watch out for these schemes throughout the year, not just during tax season. Many of these schemes peak during filing season as people prepare their…

Hobby IncomeIf you have income from sources other than your main job, how do you know whether it’s income from a business or hobby? The distinction between the two makes a big difference in your taxes. Look at the following nine factors when making the determination. Do you: 1. Operate in a businesslike manner? Do…

Single-member LLCs Editor: Shaun M. Hunley, J.D., LL.M. June 1, 2023 All states permit single-member (one-owner) limited liability companies (SMLLCs). A domestic SMLLC, by default, is a disregarded entity for federal income tax purposes. In that case, an SMLLC owned by an individual is treated as a sole proprietorship (or owner of rental property), while…

Digital Assets vs Cryptocurrency Cryptocurrency and digital assets are often used interchangeably, but they can refer to slightly different things. Cryptocurrency is a type of digital asset that uses cryptography for secure financial transactions. Cryptocurrencies are decentralized and operate on a distributed ledger technology called a blockchain. Bitcoin and Ethereum are examples of well-known cryptocurrencies.…

Independent Contractor or Employee See the IRS Document Below:

EV Tax Credits in 2023 or After Credits for new clean vehicles purchased in 2023 or after If you place in service a new plug-in electric vehicle (EV) or fuel cell vehicle (FCV) in 2023 or after, you may qualify for a clean vehicle tax credit. At the time of sale, a seller must give you…

By Martha Waggoner March 8, 2023 The IRS provided guidance to financial institutions regarding reporting for required minimum distributions (RMDs), the rules for which were changed by the SECURE 2.0 Act. The SECURE 2.0 Act, which was enacted as Division T of the Consolidated Appropriations Act, 2023, P.L. 117-328, delayed the required beginning date for…

By Martha Waggoner January 3, 2023 The IRS increased the optional standard mileage rate used to calculate the deductible costs of operating a vehicle for business to 65.5 cents per mile driven, up 3 cents from a rare midyear increase in 2022. The increased rate was effective as of Jan. 1, 2023 (Notice 2023-03). The…

President Biden closed out 2022 by signing a legislative package into law that included the Securing a Strong Retirement Act of 2022—or as it is more commonly known: SECURE 2.0. Supporters of the bipartisan legislation say it will increase access to 401(k) and individual retirement plans, especially among low- to middle-income workers. It is also…