4Thought Blog

4thought graphic - blog 2020

Year-End Tax Planning Tips for Individuals for 2022

Posted by Concannon Miller on Tue, Oct 25, 2022

With year end fast approaching, it's time to consider tax planning moves that may lower taxes for the 2022 tax year — and possibly set you up for tax savings in future years as well. 

The good news is that it now appears that there won't be any significant unfavorable federal tax changes that will take effect this year or next year. Assuming that's an accurate prediction, the tax planning environment this year end is better than it has been in past years, when Congress was considering unfavorable federal tax change proposals.

Fortunately, those changes didn't happen, leaving you with some familiar tax planning strategies to consider.

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Topics: Individual tax planning

Tax-Free Income Opportunities for Individuals: How to Take Advantage

Posted by Concannon Miller on Fri, Sep 23, 2022

Two things in life are certain: death and taxes. While you can't live forever, there are still some ways to collect tax-free income.

Here's a list of common federal-income-tax-free opportunities for individuals.

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Topics: Individual tax planning

Electric Cars: How to Cash in on the New Federal Tax Credit

Posted by Concannon Miller on Thu, Sep 1, 2022

You've probably heard that the newly enacted Inflation Reduction Act of 2022 (IRA) includes a package of measures to fight climate change, including tax incentives for both consumers and businesses.

Among other things, the law extends and revises a tax credit for buying a "clean vehicle" through 2032. This was previously referred to as the electric vehicle (EV) credit.

The credit is worth exploring if you're in the market for a new car or expect to be in the future.

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Topics: Individual tax planning

Inflation Reduction Act: The Business, Individual Tax Changes to Know

Posted by Concannon Miller on Tue, Aug 16, 2022

Congress has passed the Inflation Reduction Act (IRA) and President Biden is expected to sign it into law.

The $740 billion bill contains many tax breaks and raises revenue through a new minimum tax on large, profitable corporations and an excise tax on stock buybacks. It's intended to reduce the U.S. deficit by about $300 billion. Other revenue would come from stricter enforcement of tax compliance by the IRS.

Here are some highlights of the bill.

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Topics: Business tax planning, Individual tax planning

Mid-Year Tax-Planning Ideas for Individuals in 2022

Posted by Concannon Miller on Tue, Aug 9, 2022

The 2022 tax year is well underway, and year end will be here before you know it.

Summer is a good time to take proactive steps to help reduce the current year's tax bill.

Here are some federal tax-planning strategies to consider.

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Topics: Individual tax planning

Pennsylvania Budget Changes Business Taxes, Including Lower Taxes for Corporations

Posted by Dhruv Shah on Thu, Jul 14, 2022

Pennsylvania’s new budget for 2022-23 includes several business tax changes, including lower taxes for corporations.

The new budget cuts the corporate net income tax from 9.99% to 8.99% as of Jan. 1, 2023, and then gradually reduces (0.5%) it each year in phases until 2031, when it reaches 4.99%.

Pennsylvania’s corporate net income tax rate is currently the second highest in the nation, behind only New Jersey at 11.5%, according to the Tax Foundation. The 2031 rate will make Pennsylvania’s corporate net income tax the sixth lowest, according to the Pennsylvania Chamber of Business and Industry (PCBI).

Other business tax changes that start Jan. 1 include:

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Topics: Business tax planning, Individual tax planning

IRS Raises Standard Mileage Rate for Second Half of 2022 Due to Rising Gas Costs

Posted by Concannon Miller on Tue, Jun 28, 2022

The IRS recently announced it will be increasing the standard mileage rate for qualified business drivers for the second half of 2022.

The adjustment reflects rising costs at the gas pumps this year. It's accompanied by a hike in the standard mileage rate for medical expenses for all taxpayers and moving expenses for active-duty military personnel.

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Topics: Business tax planning, Individual tax planning

Work or Pleasure: The Tax Rules for Hybrid Travel in 2022

Posted by Concannon Miller on Tue, May 31, 2022

With business travel picking up again and summer fast approaching, many business owners may be mulling trips that combine work with vacation or other personal activities.

A quick refresher on the IRS rules related to deducting business vs. personal travel costs can help you reduce your tax bill next year.

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Topics: Business tax planning, Individual tax planning

Selling a Highly Appreciated Vacation Home? Consider the Tax Implications

Posted by Concannon Miller on Tue, May 24, 2022

Real estate markets are still surging in many parts of the country, especially in some popular travel destinations. If you're thinking about selling a vacation home that's increased dramatically in value, you might be rightly concerned about the tax hit. While the limited federal income tax gain exclusion break is still on the books, it's only available for the sale of a principal residence.

However, a vacation home will sometimes qualify for the gain exclusion break if you've also used the property as a principal residence. Here's an overview of the federal income tax rules for gains from selling a vacation home under three possible scenarios. Beware: The rules can be complicated!

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Topics: Individual tax planning

Filed Your Taxes? Which Records to Keep in 2022

Posted by Concannon Miller on Thu, Apr 28, 2022

The general rule for retaining federal tax records is three years. That's because the statute of limitations for the IRS to audit your tax return is typically three years. The statute of limitations starts on the later of 1) the due date for your tax return, or 2) the date on which you file your taxes.

However, there are many exceptions to this rule of thumb that require you to save financial documents longer. And some states have different records retention requirements. So, it's often prudent to keep most financial records longer than three years.

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Topics: Individual tax planning

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