Tax Consequences of Selling Your Home
We’re all familiar with soaring home prices. In addition to the normal moves associated with life changes, this has many people wondering if now is the time to sell. We’ve had a number of calls from clients asking about the tax consequences of a residence sale.
Alabama Amends Alabama Accountability Act – Increased Alabama Income Tax Credit Available
Governor Ivey recently signed Senate Bill 261 into law, which increases the tax credit for contributions made to Scholarship Granting Organizations (“SGO”). Effective in 2022, an Alabama taxpayer may claim up to 100% of the individual’s Alabama tax liability for contributions made to an SGO, not to exceed $100,000 per year. Prior to the 2022 amendment, the credit was limited to 50% of the taxpayer’s Alabama tax liability with a cap of $50,000. For C corporations, the credit was also increased from 50% to 100% of the Corporation’s Alabama tax liability and is not subject to the $100,000 per year cap.
IRS Reminds Employers of Penalty Relief Related to Claims for Employee Retention Credit
A couple of weeks ago we covered the IRS backlog of amended payroll tax returns (941X) for employee retention credits. Now, the Treasury and IRS have responded to requests from taxpayers for relief from penalties with IR-2022-89.
Credit Management
This is another article that we hope you will pass along to a young person you may know. If it helps them, we both did our good deeds for the day.
Lenders will often use your FICO score in making loan decisions. This can affect if you receive a loan or in setting the interest rate they will charge on a loan.
Where’s my ERC refund?
Many businesses filed for employee retention credits. Unfortunately, the IRS has a staggering backlog of Form 941’s to process as a result of ERC filings along with normal quarterly filings.
Brothers
Imagine twin brothers. The first brother graduates from high school and goes to work as a plumber at age 18. If you have any plumbing work done, you will know the kid is fairly smart
Cash Stuffing
When I was a kid, my grandparents kept several envelopes of cash in a desk drawer. It was their budgeting system and when money would come in it was allocated between various upcoming expenses each in a different envelope. It was very quaint, but I never recall them expressing any stress about money. The world…
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Unclaimed Property – Could some of it be yours?
We run this post periodically and, each time several people report finding funds held by the state. Also, we’re just happy to send something out that has nothing to do with COVID and the pandemic. Each year, unclaimed or abandoned assets are turned over to Alabama Unclaimed Property by financial institutions and businesses that lose…
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Charitable Contributions
In 2021, taxpayers who do not itemize are allowed to deduct up to $300 ($600 married filing jointly) of cash contributions made to qualifying charitable organizations. Individuals are allowed to deduct contributions to qualifying charities subject to limits based on adjusted gross income (AGI). For example, an individual’s deduction for a cash contribution to a qualifying…
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State and Local Tax Deductions
If you itemize your deductions, you are allowed a deduction on your federal return for certain taxes you paid. The deduction is commonly referred to as SALT, which is short for state and local tax. This includes real estate taxes, personal property taxes (ie car or boat tags) and state and local income taxes. The deduction is…
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