There are several potential tax benefits of purchasing a home. The most well-known perks are deducting property tax, mortgage interest, and mortgage insurance premiums when itemizing deductions, and gain exclusion ($250,000 single filers, $500,000 married filers) when you sell your home, if certain requirements are met. However, as a first-time home buyer, it may seem impossible to buy in today’s overwhelming market. Before those real estate listings scare you away from buying, there are some additional tax incentives to consider.Read POST
Since its inception in 2017, a major point of contention with the Tax Cuts and Jobs Act has been its limitation of the deduction for state and local taxes on individual returns to $10,000. This limitation, which includes state and local income taxes, real property taxes, and personal property taxes, has resulted in a number of taxpayer’s losing out on federal tax deductions they had previously been afforded, while others have been barred from itemizing on their returns altogether.Read POST
In response to the U.S.’s continued struggles recovering from the Coronavirus Pandemic, President Biden passed the American Rescue Plan Act (ARPA) in January, which contained a major overhaul to the Child Tax Credit (Provision 9611), a credit which currently benefits nearly 39 million households across the country. Now, not only does the maximum credit per child increase, but taxpayers will no longer have to wait to file their taxes in order to reap the benefits of the credit.Read POST
As virtual currency gains increasing acceptance by the public, it is important to consider the tax implications for those that invest and engage in various transactions with the digital currency. What is virtual currency? Virtual currency is a digital representation of value. Although virtual currency is exchangeable in the same manner as real currency, for example the dollar, it is not recognized as legal tender in the United States. Some virtual currencies including Bitcoin and Ethereum are convertible virtual currency, meaning they may be exchanged for an equivalent value of dollars, euros, or other types of real currency.Read POST
Over the Holidays, the Consolidated Appropriations Act, 2021 was signed into law, opening the doors for many businesses to claim the Employee Retention Credit (ERC) who were previously deemed ineligible, and expanded the credit into the 2nd quarter of 2021. Businesses that qualify can claim an ERC for wages paid during an eligible period/quarter of up to $5,000 per employee in 2020, and up to $14,000 per employee in 2021. The fully refundable credit is available against an employer’s share of Social Security tax on employee wages.Read POST
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