Category Archives: Deductions

CARES Act Provides 4 Possible Reasons to File an Amended Return

May 11, 2020 | Deductions, Financial Planning, IRS Regulation, Tax Planning, Tax Preparation

The $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act is delivering some much needed relief to Maine people and businesses. While this legislation is designed to help us move forward economically, it also provides some retroactive tax relief. There are provisions in the CARES Act that can affect 2018 and 2019 returns that  Continue Reading »

Five Payroll Tax Developments for 2020

January 20, 2020 | Deductions, IRS Regulation, Tax Planning

If you’re a business owner here in Maine, the new year comes with new payroll rules. Here are five of the most significant changes for 2020: 1. Significant revisions have been made to Form W-4 The IRS has redesigned Form W-4 for this year to reflect changes from the Tax Cut and Jobs Act (TCJA)  Continue Reading »

Bad News About Self-Created Intangibles

January 6, 2020 | Deductions, IRS Regulation, Tax Planning

Maine has seen an increase in startups and technology-based companies, especially around the Portland area. Many — if not most — went through a process that included designs, models and patents that helped bring their respective idea to market. For a long time, those self-created intangible assets qualified as capital assets, and, thusly, qualified for  Continue Reading »

Year-End Strategies to Reduce AGI

October 14, 2019 | Deductions, Financial Planning, Tax Planning

Like every summer in Maine, it went by much too fast. But now that fall is here and the end of the year is in sight, it’s a great time to think about crossing off a few of your financial to-do’s. One important project you can tackle is reducing your current-year adjusted gross income (AGI)  Continue Reading »

Tax Implications of Refinancing Your Home

September 30, 2019 | Deductions, Tax Planning

With the recent reduction in interest rates — and reports that further cuts could be on the horizon — you may be considering refinancing your home. If you are, there are some tax implications involved that you should know about. Here’s a quick overview. Deductions for Home Mortgage Interest In terms of your federal income  Continue Reading »

The Clock May Be Ticking on Corporate Stock Redemptions

September 2, 2019 | Deductions, Financial Planning, IRS Regulation, Tax Planning

Though the individual federal income tax rates established by the Tax Cuts and Jobs Act (TCJA) aren’t scheduled to expire until the end of 2025, some analysts think they could be repealed sooner. Next year’s presidential election and concerns over an increasing national deficit are two reasons why tax breaks may not stick around for  Continue Reading »

How Much Can Your Business Deduct for Vehicles Placed in Service in 2019?

July 22, 2019 | Deductions, Tax Planning, Tax Preparation

While people are jumping in their cars and hitting the road here in Maine for some summer adventures, you and your small business may be hitting the road in a new vehicle. If you are adding a new car or truck to your business’ fleet, the purchase could qualify for some tax breaks under the  Continue Reading »

Small Business Tax Strategy: Heavy Vehicle Plus a Home Office

August 15, 2018 | Deductions, IRS Regulation, Tax Planning

Small business owners are often looking for additional ways to lower their taxes. One simple and effective tax planning technique that is available thanks to the Tax Cuts and Jobs Act (TCJA) is to purchase a “heavy” vehicle, work from a qualifying home office, and keep detailed business expense records. This opportunity will be available  Continue Reading »

6 Cool Ways to Save Taxes during the Hot Summer Months

June 15, 2018 | Deductions, Exemptions, Tax Planning

The Tax Cuts and Jobs Act (TCJA) may have interfered in some of your summer plans by scaling back or eliminating certain tax breaks. But individuals and small business owners in Maine still have lots of opportunities to save on their taxes. Check out these six ideas for this summer. Host an Employee Outing Under  Continue Reading »

Self-Audit Program May Help Employers Correct Wage Errors

May 28, 2018 | Accounting Standards, Deductions, Financial Planning

Thanks to a pilot program from the Department of Labor’s Wage and Hour Division (WHD), eligible employers may now be able to conduct a self-audit of certain wage practices. This program — called Payroll Audit Independent Determination (PAID) — was launched recently to enable employers to uncover payroll errors on their own. Employers who use the PAID  Continue Reading »