Posts by Yuriy Akopyan

Small Business Owners May Qualify for a Home-Office Deduction

Article Highlights: Qualifications Actual Expense Method Simplified Method Home Office Expenses for Renters vs. Homeowners How Moving Affects the Home-Office Deduction Other Issues Gross Income Limitation “Home office” is a type of tax deduction that applies to the business use of a home; the space itself may not actually be an office. One of the…

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Health Savings Accounts (HSA) Fill Multiple Tax Needs

Article Highlights: Medical Savings Account Retirement Account High-Deductible Plan Eligible Individuals Monetary Qualification for an HSA Qualification Chart Maximum Contributions Establishing an HSA The Health Savings Account (HSA) is one of the most misunderstood and underused benefits in the Internal Revenue Code. Congress created HSAs as a way for individuals with high-deductible health plans (HDHPs)…

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Looking Ahead to 2019 Taxes

Article Highlights: Solar Credit Plug-In Electric Vehicle Credit Penalty for Not Having Health Insurance Medical Deduction Restrictions New Alimony Rules Standard Deduction Increase Increased Retirement Contributions Federal Tax Brackets Increase You have your 2018 tax return filed, or perhaps on extension, and now it is time to look forward to the changes that will impact…

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What You Need to Know about Student Loan Interest

Article Highlights:   Home Equity Loan Home Equity Interest Deduction Alternative Minimum Tax Above-the-Line Interest Deduction Qualified Expenses If you are considering borrowing funds to finance your college education or that of your spouse or children, it is important that you understand that the student loan interest deduction is not limited to the interest paid…

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Big Changes to College Savings Plans

Article Highlights: Sec. 529 Plans Saving for College Elementary and Secondary School Tuition ABLE Account Transfers Tax reform added some new taxpayer-advantageous changes to college savings plans. These plans are also known as qualified tuition programs (QTPs) or Sec. 529 plans, named after the part of the Internal Revenue Code that established them. Background: Sec.…

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How Some High-Income Taxpayers Can Maximize the New 20% Pass-through Business Deduction

Article Highlights: 20% Sec. 199A Pass-through Deduction Specified Service Business Limitations Taxable Income Limitations Wage Limitations Benefits of Being Organized as an S Corporation Taxpayers with higher 1040 taxable incomes who are self-employed but are not “specified service businesses” may find it beneficial to structure new businesses, or restructure an existing business, as an S…

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A Mid-Year Tax Checkup May Be Appropriate

Article Highlights: Concerns About Proper Withholding Late IRS W-4 and Withholding Tables New W-4 Complications Self-employed Estimated Payments Events That Can Impact Taxes Taxes are similar to vehicles, in that they sometimes need a check-up to make sure they are performing as expected. That is especially true for 2018, with all of the changes brought…

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How Long Should You Hold On To Old Tax Records?

Article Highlights: The general statute: 3 years Longer durations in some states Fraud, failure to file and other issues that extend the statute’s duration Keeping the actual return Ordering copies of previously filed returns This is a common question: How long must taxpayers keep copies of their tax returns and supporting documents? Generally, taxpayers should…

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Hobby or Business? It Makes a Difference for Taxes – Now More than Ever

Article Highlights: For-Profit Businesses Not-for-Profit Businesses Nine Determining Factors Profit Presumption Taxpayers are often confused by the differences in tax treatment between businesses that are entered into for profit and those that are not, commonly referred to as hobbies. Recent tax law changes have added to the confusion. The differences are: For businesses entered into…

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