Tax Planning

Using a Car for Business: New Rules under TCJA

Many of the tax provisions under tax reform were favorable to small business owners including those relating to using a car for business. Here’s what you need to know. Section 179 Expense Deduction If you buy a new car in 2018, and use it more 50 percent for business use, you can take advantage of…

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Self-Employed? Five Easy Ways to Lower Your Tax Bill

If you’re like most small-business owners, you’re always looking for ways to lower your taxable income. Here are five ways to do just that. Deducting the Cost of a Home Computer If you purchased a computer and use it for work-related purposes, you can take advantage of the Section 179 expense election, which allows you…

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What to Do When Your Tax Return is Late

Tuesday, April 17, 2018, was the tax deadline for most taxpayers to file their tax returns. If you haven’t filed a 2017 tax return yet, the sooner you do something about it the better, and it may be easier than you think. First, gather any information related to income and deductions for the tax years…

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Don’t Let IRA Assets Go Astray

By Peter Desmond Hopkins, CPA, MS ‒ Manager As published in Delaware Banker Spring 2018 Vol. 14 No. 2 It is no secret that Delaware’s many advantages entice clients to establish relationships with Diamond State bankers and other advisers. Often, new clients are so impressed with the professionalism they observe in Delaware that they move…

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Five Tax Provisions Retroactively Extended for 2017

The Bipartisan Budget Act of 2018 (BBA) retroactively extended over 30 tax provisions through the end of 2017, for individual taxpayers. Let’s take a look at five of them. Mortgage Insurance Premiums Homeowners with less than 20 percent equity in their homes are typically required to pay mortgage insurance premiums (PMI). For taxpayers whose income…

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Refundable vs. Non-Refundable Tax Credits

Tax credits can reduce your tax bill or give you a bigger refund but not all tax credits are created equal. While most tax credits are refundable, some credits are nonrefundable. Before we take a look at the difference between refundable and nonrefundable tax credits, it’s important to understand the difference between a tax credit…

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Understanding Estimated Tax Payments

Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends and rents as well as gains from sales of assets and prizes and awards. You also may have to pay estimated tax, if the amount of income tax being withheld from…

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Need to File an Extension? Don’t Wait.

If you’ve been procrastinating when it comes to preparing and filing your tax return this year you might be considering filing an extension. While obtaining a six-month extension to file is relatively easy–and there are legitimate reasons for doing so–there are also some downsides. If you need more time to file your tax return this…

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April 1 Deadline for Retirement Plan Distributions

In most cases, taxpayers who turned 70½ during 2017, must start receiving required minimum distributions (RMDs) from Individual Retirement Accounts (IRAs) and workplace retirement plans by Sunday, April 1, 2018. The April 1 deadline applies to owners of traditional (including SEP and SIMPLE) IRAs but not Roth IRAs. Normally, it also applies to participants in…

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There’s Still Time to Make a 2017 IRA Contribution

If you haven’t contributed funds to an Individual Retirement Arrangement (IRA) for tax year 2017, or if you’ve put in less than the maximum allowed, you still have time to take full advantage of this tax break. You can contribute to either a traditional or Roth IRA until the April 17 due date, not including…

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