Tax advisory & Consultant

I f you owe taxes on your 2018 tax return, the due date to make the payment is Monday, April 15. Miss this deadline by just one day and the IRS will charge you interest and penalties! Don’t risk adding unnecessary dollars to your tax bill. Review the payment options below and make a plan now to ensure your payment arrangements are completed before the deadline. Options to pay immediately IRS direct pay . This free service allows you to pay your balance online using a checking or savings account. Electronic Federal Tax Payment System (EFTPS) . This free service also allows payment from a checking or savings account, but you can pay online OR by phone. Debit or credit card payment . The IRS has three authorized third-party processors to accept payment by debit or credit card, but they charge a fee. Debit card transactions have flat fees that range from $2 to $4. Credit cards are more costly at 2 percent of the entire transaction. Check or money order. These payments can be made...

B ecause of new laws many home related tax rules have changed and now require you to prove how funds are used to qualify for a deduction. This is catching many taxpayers by surprise. So when your mortgage company reports tax-related information to you and the IRS using Form 1098, it no longer means all the interest and points reported on these statements are tax-deductible. Mortgage interest deductions have new loan amount limits. For new mortgages starting on or after Dec. 15, 2017, you can deduct interest on up to $750,000 of the loan (down from $1 million for mortgages initiated before Dec. 15, 2021) . If your original mortgage is above the threshold, a calculation will be done to determine the deductible amount of interest. You can’t simply deduct the full amount of interest being reported on your Form 1098. Proceeds not used to buy a home add complexity. Proceeds from home equity debt that are not used to build, buy or substantially improve a qualified home are no longer t...

A new deduction is available to businesses with qualified business income (QBI). While that's great news, new deductions (especially ones with lots of rules) can bring anxiety and confusion. Never fear! Ensuring you receive a maximum deduction will come down to providing the proper information. Here is some knowledge to help you cut through the confusion: What is the QBI deduction? In short, it's a 20 percent deduction against ordinary income, taken on your personal tax return,   that reduces qualified business income earned for most pass-through businesses (sole proprietorships, partnerships and S-corporations). It's not an itemized deduction , so you can take it in addition to the standard deduction. To qualify without limitations, your total taxable income needs to be below $157,500 ($315,000 for married couples) for 2021. If your income exceeds the threshold, it gets complicated. What you need to know: ·          If your ...