The rules for startup costs differ from expenses for operating your business. The IRS specifies what startup costs are, how much you can deduct in the first year, when they are deductible, and how they are deductible if your business does not start.
Roth IRA income limits to contribute are $144,000 for single filers and $214,000 for married filing jointly filers for 2022. Backdoor Roth IRAs allow individuals with earnings above these thresholds to contribute to a Roth IRA. This article explains how a backdoor Roth IRA works, the possible tax effects, the five-year rule, and advice on determining whether a backdoor Roth is for you.
You can claim the child tax credit if your children meet specific criteria. Depending on your income, you may be able to claim the maximum amount. Moreover, you might be eligible for additional credit if you cannot claim the maximum amount.
Traditional and Roth IRA plans are used to secure funds for retirement. They have similarities and differences, mainly in their contribution and distribution rules. Generally, the account best for you in retirement depends on your specific tax situation.
Typically, business interest expenses are deductible when the loan is used for business operations. However, there are limits to how much businesses can deduct if they exceed a certain income threshold.
Generally, rental deductions have straightforward classifications and are deducted immediately. However, expenses for repairs and improvements are difficult to classify and have different deduction rules. As a result, the IRS has safe harbors that simplify the deduction rules in certain situations.
Traditional LLCs and series LLCs have advantages for rentals, but the right LLC depends on your risk tolerance. Also, an S Corp election provides the same protections as an LLC, but it may not be advantageous for a rental.
S Corporations (S Corps) and Limited Liability Companies (LLCs) are popular business entities because of their pros, but they also bring along their cons. The right business entity depends on your specific tax situation.
The saver’s credit is a tax credit for contributing to an IRA or employer-sponsored retirement plan. In addition, the credit is nonrefundable, meaning the credit can only reduce your taxes, not provide you with a refund.
Deductions for rental losses can be against passive (earned with minimal effort) or ordinary (i.e., salaries and wages) income. The time you spend participating in the rental activity determines how you can deduct your rental losses.