Now that your taxes are complete and filed for the year, you are probably wondering what old records can be discarded. You can toss those old records after 4 years with some exceptions. However, don’t discard records that support the tax basis of an asset you still have. You will need those when the asset is sold to determine profit or loss.
If you could not complete your 2021 tax return by the original filing due date and are now on extension, that extension expires on October 17, 2022, and no additional extensions are available. Failure to file before the extension period ends can subject you to late-filing penalties.
With the passage of the Inflation Reduction Act of 2022 the Home Energy Improvement Credit once again becomes a meaningful incentive for taxpayers to make energy-saving improvements to their homes. The new legislation did away with the minimal $500 lifetime limit by replacing it with a $1,200 annual limit and increased the credit rate from 10% to 30%.
With the recent passage of the Inflation Reduction Act of 2022, the electric vehicle credit has undergone some major changes. Although most of the changes take effect in 2023, to qualify for the current credit, vehicles purchased after August 15, 2022, are required to meet the final assembly requirement of the new law.
To help struggling taxpayers affected by the COVID-19 pandemic, the IRS has issued a notice, which provides penalty relief to most people and businesses who file or filed certain 2019 or 2020 returns late.
All too often, taxpayers wait until after the close of the tax year to worry about their taxes and miss opportunities that could reduce their tax liability or financially benefit them. Mid-year is the perfect time for tax planning. You may be able to take steps to mitigate the impact of certain events on your taxes and, thus, avoid unpleasant surprises before it is too late to address them.
On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022, which is a scaled-back version of the prior Biden administration proposals included in the Build Back Better Act. The legislation includes a variety of provisions, including substantial green energy incentives, reduction of Affordable Care Act insurance premiums, IRS funding, corporate minimum tax, and more.
A frequent question that arises when borrowing money is whether or not the interest will be tax deductible. That can be a complicated question, and unfortunately not all interest an individual pays is deductible. The rules for deducting interest vary, depending on whether the loan proceeds are used for personal, investment, or business activities.