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QTA Consultants, Ltd.
Top Strategies for Winning Your Tax Dispute Resolution
May 02, 2024Renata BliumaiteIf you find yourself in a tax dispute with the IRS, understanding tax dispute resolution is crucial. Here are some key points to help you navigate this process:
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Sing a different tax story
Apr 29, 2024Renata BliumaiteAre you lacking records needed to support certain business deductions? You might be able to tap dance around the requirements.
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Maximizing Your Home Sale Profit: How to Calculate Tax Basis and Reduce Your Gain
Apr 25, 2024Renata BliumaiteMaximizing Your Home Sale Profit: How to Calculate Tax Basis and Reduce Your Gain
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Straight talk on reverse Mortgages
Mar 19, 2024Renata BliumaiteDo I owe tax on payments I receive from a reverse mortgage?
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Book tax savings for a vacation home
Mar 19, 2024Renata BliumaiteStrategy: Rent out the home for two weeks or less. Believe it or not, you don’t have to pay any federal income tax on the rental income! You can’t deduct any related expenses (such as advertising costs or cleaning), but you’ll usually still come out way ahead on the deal.
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Tax Audit Tips
Mar 11, 2024Renata Bliumaitetax audit tips
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Fast-track building write-offs Cost Segregation
Mar 10, 2024Renata BliumaiteStrategy: Authorize a cost segregation study. If you qualify, you can use the study to write off certain building components in just five or seven years, without applying to the IRS for an accounting method change. That’s not to say that the IRS will give you free rein to write off separate building components over a short period of time. In fact, the nation’s tax collection agency often challenges cost segregation studies used by taxpayers to justify faster write-offs for buildings.
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Take aim at like-kind exchanges
Mar 10, 2024Renata BliumaiteStrategy: Arrange a like-kind real estate swap before it’s too late. Currently, there is no deadline on the books, but acting sooner rather than later may be advisable. The White House has consistently supported a complete repeal of the like-kind exchange break, but it’s a controversial proposal. Expect the issue to heat up this summer.
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Obtain tax relief as innocent spouse
Mar 10, 2024Renata BliumaiteStrategy: If this happens to you, request “innocent spouse” relief from the IRS. Such a request is often made after a separation or divorce. In essence, you’re absolved of liability caused by your spouse or former spouse if you qualify as an innocent spouse.
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4 ways to deduct cybersecurity costs
Mar 10, 2024Renata BliumaiteStrategy: Install cybersecurity measures to protect your business. Generally, these costs can be deducted under applicable federal income tax rules. Here are four common examples of write-offs that may be available to your small business.
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Know about 20 unusual medical expenses
Mar 10, 2024Renata BliumaiteStrategy: In preparation for filing your 2023 Form 1040, comb through your records for deductible medical expenses. Some you might not have considered could put you over the deduction threshold. For instance, you may have incurred expenses in 2023 relating to COVID-19 treatment. Other deductible expenses aren’t as obvious.
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Do not miss these credits on your tax return
Feb 28, 2024Renata BliumaiteGo green at home Connect with electric vehicle credit
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House passes tax bill
Feb 20, 2024Renata BliumaiteOn January 31, the House passed sweeping new tax legislation with bipartisan support.
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Salvage tax break for student loan interest
Feb 15, 2024Renata BliumaiteStrategy: Seize the deduction for student loan interest paid in 2023. This deduction is claimed above-the-line, so it reduces adjusted gross income (AGI), which can make the taxpayer eligible for certain other federal income tax breaks. However, the write-off is phased out for higher-income taxpayers. Therefore, if your name is on the loan papers, and not your child’s, you may not qualify for the student loan interest deduction.
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Keep working to avoid RMDs
Feb 15, 2024Renata BliumaiteStrategy: Stay on as an employee-consultant. As a result, you don’t have to start taking required minimum distributions (RMDs) from your company retirement plan as long as you’re still working for the company. This “still-working” exception does not apply to IRAs.
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Tax Angles to Stock Dividends
Feb 07, 2024Renata BliumaiteDo I owe tax on dividends that I don’t withdraw from my brokerage account? T.P., Oak Park, IL
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Sweep up tax breaks for mold removal
Feb 07, 2024Renata BliumaiteAlert: The results might be different for removing mold from a business building. Notably, the IRS allowed a write-off for mold removal in a private letter ruling issued back in 2006. The letter ruling is noteworthy because it established a unique rationale for this environmental hazard. (IRS PLR 200607003) Of course, a private letter ruling only applies to the party requesting it, but it does provide a good indication of how the IRS would interpret matters in a comparable situation.
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Take basis of gifts into account
Feb 06, 2024Renata BliumaiteStrategy: Make lifetime gifts. Under the current rules, you can almost certainly avoid any federal gift tax liability. Nevertheless, the basis of the property you’re gifting can make a big income tax difference.
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Salvage tax loss for worthless stock
Feb 06, 2024Renata BliumaiteStrategy: Prepare to claim a capital loss for the worthless stock. The loss can offset capital gains in 2023 plus up to $3,000 of highly taxed ordinary income. However, you must be able to establish that the stock is truly “worthless” in the year a worthlessness loss is claimed on your return. Timing in this area can be critical.
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Claim a healthy tax deduction
Feb 06, 2024Renata BliumaiteI’m starting a self-employed business.
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Build tax shelter with housing credits
Feb 06, 2024Renata BliumaiteStrategy: Investigate real estate that generates low-income housing credits. The credits are spread out over the time it takes to complete the project.
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Book tax savings for weekend travel
Feb 06, 2024Renata BliumaiteStrategy: Figure out the tax consequences for your situation. For instance, if you stay overnight on Saturday, this may give you a tax-saving edge. Generally, you can deduct business travel expenses if the “primary purpose” of the trip is business-related. But the number of business days versus personal days is critical. Assuming you qualify, a Saturday layover may provide extra tax savings.
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Drink in new retirement COLAs
Jan 17, 2024Renata Bliumaitedrink in new retirement COLAs
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5 Reasons Why Real Estate Should not be Placed in S-Corporation or LLC Taxed as and S-Corporation
Dec 28, 2023Renata Bliumaite5 Reasons Why Real Estate Should not be Placed in S-Corporation or LLC Taxed as and S-Corporation
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Why bypass the home sale exclusion?
Dec 28, 2023Renata BliumaiteSometimes you should pass up a current tax break for a better one later on. Strategy: Don’t claim the home sale gain exclusion now if you can shelter more profit from tax in a subsequent home sale. As long as you meet the tax law requirements (see box on page 2), you can save the exclusion for when it will do you the most tax good.
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How long to keep tax records?
Dec 28, 2023Renata BliumaiteStrategy: Keep tax records for at least three years after the filing date. That’s the basic statuteof-limitations period for the IRS to audit your return, but consider it to be the bare minimum. Hold on to your records longer if you’re riskaverse.
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Avoid estimated tax whammy
Dec 28, 2023Renata BliumaiteStrategy: Make sure you meet your estimated federal income tax payment obligations for 2024. Typically, you’ll have to make a payment for the first quarter of your 2024 tax year by April 18. In particular, you must be careful to avoid a potential tax trap if you own an interest in a pass-through entity that produces positive taxable income.
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Get tax facts on Bitcoin
Dec 28, 2023Renata BliumaiteStrategy: You must report your gains or losses on your 2023 Form 1040. There’s a lot of confusion in this evolving area, but the IRS has provided some basic guidance.
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Should you switch to S corp status?
Dec 22, 2023Renata BliumaiteStrategy: Take time to figure out if a switch makes sense for you. Under the current tax rate structure, some business owners are better off bypassing this option. The election must be made by the 15th day of the third month of the tax year. In other words, a calendar-year corporation has until March 15, 2024, to decide for its 2024 tax year.
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IRS issues standard mileage rates for 2024; mileage rate increases to 67 cents a mile, up 1.5 cents from 2023
Dec 15, 2023Renata BliumaiteIRS issues standard mileage rates for 2024; mileage rate increases to 67 cents a mile, up 1.5 cents from 2023
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IRS expands work on aggressive Employee Retention Credit claims; 20,000 disallowance letters being mailed, more action and voluntary disclosure program coming
Dec 15, 2023Renata BliumaiteIRS expands work on aggressive Employee Retention Credit claims; 20,000 disallowance letters being mailed, more action and voluntary disclosure program coming
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Alternative Fuel Refueling Property Credit
Dec 12, 2023Renata BliumaiteA tax credit equal to 30% of the cost of qualified property is allowed for placing in service property used to store or dispense an alternative fuel into the fuel tank of a motor vehicle propelled by the fuel, or used to recharge an electric vehicle.
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Non-business energy property credit
Dec 12, 2023Renata BliumaiteEffective for 2023, the nonbusiness energy property credit is renamed the energy efficient home improvement credit. The credit is increased to 30% of the cost of improvements made, and replaces the lifetime limitations to the following ANNUAL limitations.
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Understanding the Benefits of the Social Security System: More Than Just Retirement Coverage
Dec 12, 2023Renata BliumaiteUnderstanding the Benefits of the Social Security System: More Than Just Retirement Coverage
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Study tax-free scholarship rules
Dec 04, 2023Renata BliumaiteStrategy: Have your child aim for tax-free scholarships. While not suggesting overlooking taxable awards, prioritizing tax-free scholarships can optimize the value received. It’s a common misconception that all scholarships are tax-free. Some are completely exempt from tax, some are fully taxable and others are split.
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Year-End Tax Planning: 10 Essential Moves for Small Businesses to Maximize Tax Breaks in 2023
Nov 27, 2023Renata BliumaiteYear-end tax planning isn’t just for individuals. It’s more important than ever for a small business to take advantage of the tax breaks currently on the books.
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