Taxation Insights

President Biden signed the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act into law in late 2022, but much of the wide-reaching retirement legislation is being phased in over time. There are some significant changes in 2024 and 2025 that may help nonprofit employers recruit and retain employees. This article presents what organizations need to know. A brief sidebar looks at how SECURE 2.0 boosts the advantages of qualified charitable distributions (QCDs), possibly leading to larger gifts for nonprofits.

The tax code allows an individual to claim a deduction for business debts that have become worthless. But qualifying for the deduction may be more complicated than one would think. In a recent case, the IRS denied more than $17 million in bad debt deductions on the grounds that the advances in question represented equity rather than debt, hitting the taxpayer with millions of dollars in taxes and penalties. This article recounts the U.S. Tax Court case Allen v. Commissioner. Allen v. Commissioner (T.C. Memo 2023-86).

During the COVID-19 pandemic, business travel nearly came to a halt. Today, it’s on the rebound, as “Zoom-fatigued” executives craving face-to-face interaction hit the road again. With more people getting out of their offices, now is a good time for a refresher on the tax deductibility of business travel expenses. This article explores what’s considered one’s tax home and what expenses are deductible. A sidebar explains the deductibility rules when a business trip is mixed with pleasure.

The 20% qualified business income (QBI) deduction is available for income from an eligible trade or business, but it isn’t available if that same property is classified as an investment. This article points out that it’s worth considering whether an owned rental property meets the definition of a trade or business under IRS requirements. It also explains that determining whether rental real estate activities qualify for the QBI deduction is a complicated undertaking and is likely to require the services of a tax professional.

SECURE 2.0 - There are some significant changes in 2024 and 2025 that may help nonprofit employers recruit and retain employees. This article presents what organizations need to know.

On February 13, 2024, the IRS issued IR 2024-39 to share warning signs that an ERC (Employee Retention Credit) claim may be questionable warranting further investigation. It is urging taxpayers to revisit their claims and, if questionable, take advantage of its ERC Voluntary Disclosure Program or claim withdrawal process.

This article, written on February 2nd, highlights the House's passage of the Tax Relief for American Families and Workers Act of 2024, H. R. 7024 on January 31st. However, it's important to note that the details are subject to change pending the Senate's vote and the ultimate signing into law by the President. Despite concerted efforts to get the bill to the Senate in time for the current tax filing season, this deadline has unfortunately lapsed, causing some concern over timing and efficacy. However, lawmakers remain optimistic about swift passage in the subsequent stages, aiming to minimize the impact on the IRS and enable prompt relief for taxpayers.

As you pull together your documents to share with your accountant for 2023 tax preparation, there are many potential deductions and credits that may be relevant for your business for your upcoming filing.