For tax years 2025 through 2028, taxpayers may deduct up to $10,000 of interest paid (subject to limitations and phaseouts) on a loan used to purchase a qualifying passenger vehicle for personal use under a temporary provision in §163(h)(4). To qualify, the loan must be incurred after December 31, 2024, secured by a first lien […]
In 2026, the IRS raised the federal estate tax exemption to $15 million per individual. You may also give up to $19,000 per person each year without triggering gift tax. The recipient generally owes no tax and does not need to report the gift unless it comes from a foreign source. However, if you give […]
Businesses have specific deadlines for reporting income and payroll taxes. These deadlines include quarterly and annual filings with the IRS. Businesses must adhere to these deadlines or face penalties for late or missed filings. The following are some important filing deadlines: Employer’s Quarterly Federal Tax Return (Form 941) Quarter 1 (January – March): Due April […]
Self employed individuals—including freelancers, independent contractors, and small business owners—can deduct a wide range of business related expenses. Eligible deductions may include startup costs, home office expenses, vehicle and rent expenses, health insurance premiums, retirement plan contributions, and business travel. In addition, certain types of capital equipment used in the business may qualify for special […]
Past due taxes can accumulate significant penalties and interest. The IRS may impose a failure to pay penalty of 0.5% of the unpaid balance per month, up to a maximum of 25%. If you also fail to file on time, an additional 5% per month failure to file penalty applies, likewise capped at 25%. Combined, […]