4Thought Blog

4thought graphic - blog 2020

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

The Tax Benefits of Putting Your Vacation Home into an LLC

Posted by Concannon Miller on Tue, Mar 29, 2022

If you're lucky enough to own a vacation home, you might wonder about the optimal ownership structure for the property.

For rental real estate properties and real estate held for investment, such as raw land, good choices are single-member and multi-member limited liability companies (LLCs). But the LLC option isn't always right for vacation homeowners.

Here's important information to help you decide what's best for your situation.

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Topics: Individual tax planning

Warning: Working from Home May Complicate Your Income Taxes

Posted by Concannon Miller on Thu, Mar 24, 2022

Remote work has become more common in recent years, and the COVID-19 pandemic has resulted in employers realizing that many jobs can be done from home.

Some remote workers even work in a different state than where their employers are based. These employees may have opted to move to states with lower or no income taxes, but they — and other remote employees now working across state lines — may find themselves shouldering unexpected state income tax liabilities.

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Topics: Individual tax planning

Federal Government Warns of Tax Return, Refund Delays for 2022

Posted by Concannon Miller on Tue, Jan 18, 2022

U.S. Treasury officials last week warned of expected significant delays in processing tax returns and refunds for the 2022 season.

The IRS is still dealing with backups in processing returns from the past two filing seasons and the continuing pandemic is causing staff shortages, officials said. Normally at the start of tax season the IRS has about 1 million items in its backlog but the current backlog totals more than 6 million items, officials said.

The IRS is urging taxpayers to file electronically and request direct deposit – instead of a mailed check – for quicker turnaround.

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Topics: Business tax planning, Individual tax planning

The Top 7 Personal Financial Resolutions for 2022

Posted by Concannon Miller on Tue, Dec 28, 2021

It's almost time to ring in the New Year — and many people are looking forward to putting 2021 in the rearview mirror.

While New Year's resolutions often focus on eating less and exercising more, you should also give some thought to your financial fitness.

Here are seven ways to introduce more discipline and vigor into your financial regime.

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Topics: Individual tax planning

Tips to Avoid Costly Tax Penalties on Your RMDs

Posted by Concannon Miller on Mon, Dec 13, 2021

After a one-year hiatus due to the COVID-19 pandemic, owners of qualified retirement plans and IRAs must adhere to the rules for required minimum distributions (RMDs). The RMD rules are tricky and could result in a substantial tax penalty if you're not careful.

For starters, an RMD is the amount you must withdraw from a qualified retirement plan account or traditional IRA to avoid an expensive tax penalty after reaching the "magic" age. Here are the answers to 20 frequently asked questions about RMDs under current law.

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Topics: Individual tax planning

4 Big Charitable Tax Breaks for Businesses, Individuals to use in 2021

Posted by Concannon Miller on Tue, Nov 23, 2021

Are you feeling generous? Qualified charitable contributions can be rewarded with sizeable tax breaks during the second calendar year of the COVID-19 pandemic.

Recent legislation includes the following four temporary tax law changes that are designed to help individuals and businesses that donate to charities through the end of 2021.

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Topics: Business tax planning, Individual tax planning

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