The SECURE 2.0 Act, which was signed into law on Dec. 29, 2022, will help many Americans save more for retirement. However, many of the provisions don’t kick in for a few years. One provision that does take effect this year is an increase in the age for beginning required minimum distributions (RMDs). Employer-sponsored qualified retirement plans, traditional IRAs and individual retirement annuities are subject to RMD rules. They require […]
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If you rent a home you own to a relative, there may be tax consequences. Renting out a home you own may result in a tax loss for you even if the rental income is more than your operating costs. You’re entitled to a depreciation deduction for your cost of the home (except for the portion allocated to the land). But if your tenant is related to you, special rules […]
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No one needs to remind business owners that the cost of employee health care benefits keeps going up. One way to provide some of these benefits is through an employer-sponsored Health Savings Account (HSA). For eligible individuals, HSAs offer a tax-advantaged way to set aside funds (or have their employers do so) to meet future medical needs. To be eligible, an individual must be covered by a “high deductible health […]
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The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $160,200 for 2023 (up from $147,000 for 2022). Wages and self-employment income above this threshold aren’t subject to Social Security tax. The Federal Insurance Contributions Act imposes two taxes on employers, employees and self-employed workers. One is for Social Security tax, and the other for Medicare tax. There’s a maximum amount of […]
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You and your small business are likely to incur a variety of local transportation costs each year. Commuting costs aren’t deductible but the cost of any local trips you take for business purposes is a deductible business expense. Your deduction can be computed using actual expenses or a standard mileage rate (58.5¢ per business mile driven between Jan. 1 and June 30, 2022, and 62.5¢ per business mile driven between […]
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