Small Business Financials

Electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), and other clean-energy vehicles continue to gain popularity, especially as gas prices soar. Is it time for you to make the switch? If you’re new to the EV market, you no doubt have a lot of questions — topics like EV battery range, maintenance costs, and affordability among them. But have you given thought to the tax implications of purchasing an electric vehicle? To help you understand how buying an EV might affect your taxes and your wallet, we’ve put together a comprehensive guide designed to help you decide if you (and your budget) are ready to go electric. We’ll start with the most exciting part: tax credits. What is the federal tax credit for electric vehicles? On Aug. 16, 2022, Congress passed the Inflation Reduction Act (IRA), a bill that included large investments in clean energy — including big changes to tax incentives for EV purchases. To qualify for the electric vehicle tax credit in tax year 2022, ...

By now, you’ve probably heard about the Inflation Reduction Act President Biden signed into law in mid-August. On the surface, it sounds like a good thing. Who wouldn’t want to reduce the sky-high inflation we’ve all been dealing with this year? But, as always, there’s a little more to it. Let’s go over the goals of the Inflation Reduction Act and how some of its tax changes could impact taxpayers like yourself in 2022 and beyond. What does the Inflation Reduction Act include? The Inflation Reduction Act (IRA) covers a lot of ground — ambitious investments in clean energy to help combat climate change, prescription drug pricing reform, and even tax increases on large corporations. We’re going to narrow our focus to three main ways the IRA is likely to impact individual taxpayers or small businesses: Changes to clean energy tax incentives Large IRS funding increases Extension of the Affordable Care Act (ACA) subsidy program 1. Clean energy tax credits The Inflation Reducti...

CON-15-TY21-490-eBay Infographics 4_Common Seller FAQs and Unique Scenarios Explained - FINAL The post Common eBay Seller FAQs Explained appeared first on TaxAct Blog . from TaxAct Blog https://ift.tt/ArdSkZY via CFO Blog

Whether you intended to be a landlord or you fell into it because you had vacant property you couldn’t or didn’t sell, owning rental property is a source of income and it affects your tax return. Knowing the rules can help you maximize the tax advantages of owning rental property and help you create a strategy to help lower your tax bill or defer some of your taxes. Tax deductions and other benefits of owning rental real estate If you’ve read “get rich” real estate books, a common theme is that rental property can help you save money on taxes. The key is the depreciation deduction — a deduction you can take for a percentage of your basis in rental buildings each year. When you sell the property, all those depreciation deductions have reduced your basis in your property. Your profit when you sell is equal to your selling price, minus your adjusted basis. You get the tax benefits of depreciation deductions while you own the property, but when you sell, you generally pay tax on t...