Idaho Tax Deduction for First-Time Home Buyers
With real estate costs across Idaho continuing to rise, the prospect of home ownership for many first-time homebuyers may seem more financially daunting than ever for some Gem State taxpayers. Thankfully, beginning in 2020, a new law has passed in an attempt to aid first-time homebuyers in the state of Idaho through potential tax benefits. Idaho Code section 63-3022V: Deduction For First-Time Home Buyers, allows individuals who open a First-Time Home Buyer Savings Account deductions on their Idaho return equal to their contributions into the account (maximum $15,000 a year for single filers, $30,000 for married couples), with a lifetime deduction limit of up to $100,000.
Read POSTFamilies First Coronavirus Response Act: Paid Leave & Tax Implications for Small Business Owners
On March 18th, with Americans experiencing the economic impact of the COVID-19 virus, President Trump signed into law the Families First Coronavirus Response Act in an effort to ease the financial strain being dealt to working people across the country. Two key provisions of the bill (HR 6201) are: 1) the Emergency Family and Medical Leave Expansion Act (EFMLEA) which amends the Family and Medical Leave Act (FMLA) to allow paid leave for employees whose child care has been disrupted due to COVID-19, and 2) the Emergency Paid Sick Leave Act (EPSLA) which increases the number of employees with access to paid medical sick leave.
Read POSTSave On Student Loan Repayment with an Idaho Ideal 529 Plan
In an effort to help ease the burden of student loan debt across the country, the SECURE Act, which was passed last December, has increased the scope of 529 educational savings plans to allow for distributions to help pay for qualified student loan debt. Prior to the passage of the SECURE Act, 529 plans in the state of Idaho could be used for many educational expenses, including K-12 and college tuition payments, but student loan debt was conspicuously excluded as a qualifying expense.
Read POST20% Rental Real Estate Deduction – Is 250 Hour Safe Harbor Necessary?
In 2018, the Tax Cuts and Jobs Act (TCJA) introduced the 199A Qualified Business Income (QBI) Deduction, promising a 20% deduction from taxable income derived from qualified trades or businesses. That meant a taxpayer earning $10,000 in qualifying income would only pay taxes on $8,000 of said income. The initial guidance from the IRS made it clear that in order to qualify for the 20% QBI deduction, income must first be sourced through either a U.
Read POSTSECURE Act is changing retirement
This past December, Congress passed a spending bill, The Setting Every Community Up for Retirement Enhancement (SECURE) Act, making big changes to rules for retirement savings plans. The provisions are generally positive for individuals saving for retirement and small businesses alike, but may hurt those who inherit traditional IRA’s. The following are some major points that are likely to affect a large number of our clientele: RMD & IRA Contribution Changes Effective starting in 2020, the SECURE Act has changed the age that account holders must make Required Minimum Distributions (RMDs) from 70.
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