Tax Tips

The IRS has issued interim guidance in Notice 2026-11 on January 14, 2026, providing interim guidance on the additional first year depreciation deduction (“bonus depreciation”), following the enactment of the One Big Beautiful Bill Act (P.L. 119-21, OBBBA). The OBBBA makes 100% bonus depreciation permanent for qualified property acquired and placed in service after January 19, 2025. Notice 2026-11 explains how taxpayers can apply that rule now—before Treasury/IRS issues proposed regulations—and outlines key elections and special rules (including new rules for qualified sound recording productions). The Permanent 100% Bonus Depreciation Rule (Post–January 19, 2025 Property) The OBBBA amended the

A Guide to Bringing U.S. Taxpayers Back into Compliance Many U.S. citizens and green card holders living abroad fail to realize that living outside of the U.S. does not end their U.S. tax obligations. As a result, expats often fall out of compliance for multiple years before discovering the issue. Common mistakes expats make include filing late returns without using streamlined procedures, failing to submit required FBARs, underestimating the importance of the non-willful certification, or assuming no filing requirement because no U.S. tax is owed. Each of these mistakes can trigger penalties or disqualify an otherwise eligible streamlined submission.

As tax laws evolve, the rules for deducting depreciation on vehicles used for business purposes have become more flexible yet remain complex. Understanding these rules is crucial for maximizing your tax benefits, especially with annual inflation adjustments influencing allowable depreciation deductions. Here’s an overview of how to navigate these rules for cars, SUVs, pickups, and vans used in your business. Methods for Deducting Business Vehicle Expenses When it comes to deducting business-related vehicle expenses, you have two primary methods to choose from: Cents-per-Mile Method: For 2024, the standard mileage rate is 67 cents per business mile (an increase from

Multifamily developments included in Section 45L tax credit Prior to 2023, only smaller projects, like single-family homes and low-rise residential developments of three stories or less, could take advantage of the Section 45L New Energy Efficient Home Credit. This tax credit has been a boon for home builders since its inception in 2006. It allowed developers of qualified energy efficient homes to claim a tax credit of $2,000 per unit. But unfortunately, larger multifamily projects were not eligible to claim these tax credits. Inflation Reduction Act of 2022 expands Energy Efficient Home Credit With the passage of the Inflation Reduction Act of 2022

Here is the latest update from the IRS regarding the 2023 optional standard mileage rates. These rates are used to calculate the deductible costs of operating a vehicle for business, charitable, medical, or moving purposes. Starting from January 1st, 2023, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) are as follows: For business use: 65.5 cents per mile driven, which is up 3 cents from the midyear increase that set the rate for the second half of 2022. For medical or moving purposes for qualified active-duty members of the Armed Forces:

  If you receive proceeds from the settlement of a lawsuit, you may have questions about whether you must include the proceeds in your income. This publication provides information about whether you must include the proceeds of certain kinds of settlements in your income. Whether you must include the settlement proceeds in your income depends on all the facts and circumstances in your case. A settlement payment may consist of multiple elements that have been allocated by the parties. For example, an agreement may include allocations to back pay, emotional distress, and attorneys’ fees. Generally, the IRS will not

This week, President Biden signed into law the 2022 Inflation Reduction Act (the Act). The Act includes numerous tax provisions – most notably an array of new tax credits relating to energy-efficient homes, businesses, and vehicles. It also provides several new healthcare and prescription drug benefits for individuals, including a $2,000 Medicare out-of-pocket cap for prescription drugs, a $35 Medicare monthly insulin cap, and a three-year extension of the expanded Affordable Care Act health insurance subsidy. The following is a summary of the Act’s key provisions that may affect you: Extension and Modification of Plug-In Electric Vehicle Tax Credit

This law established, for tax years 2021-2025, an optional entity-level income tax at a rate of 5.75% for electing pass-through entities (“PTE Tax”) such as partnerships and S-Corporations. The law provides Virginia resident owners of PTEs a credit for taxes paid to other states (“OSC”) on their share of entity-level income taxes paid by the PTE (partnerships and S-Corporations) to other states that are “substantially similar” to Virginia’s PTE Tax. Entities that are eligible to elect the Virginia PTE Tax are those that are 100% owned by individuals, or in the case of S-Corporations, those eligible to be shareholders

Executives responsible for the tax provision should be aware of numerous tax changes which are effective for the first time beginning in Q1-2022. Companies should consider the impact these changes will have on their income tax provision, and whether they should be accounted for discretely or through the annual estimated effective tax rate. Here are a few of the most impactful developments:   IRC Sec. 163(j) Limitation of Interest Expense – Base Limited to EBIT As was planned since the TCJA first imposed a limitation on interest expense in 2018, beginning in 2022, the IRC Sec. 163(j) interest limitation

Many people think that they know a small business when they see one. But when it comes to eligibility for various government programs designed to assist small businesses, agencies must have a definition of small business that is applied consistently for all. The U.S. Small Business Administration establishes such definitions for small businesses by industry, as identified by OMB-approved industry NAICS codes. These “size standards” are widely used throughout government and are published in the Code of Federal Regulations.  Most are based on either a firm’s number of employees or its amount of average annual receipts. The SBA published a final