Inflation Reduction Act of 2022: Clean Vehicle Energy Credit

 

With the recent passing of the Inflation Reduction Act, you can reap the benefit of a $7,500 tax credit on purchasing a new electric vehicle. The new law also includes guidance on purchasing used electric vehicles, which are eligible for a credit for the lesser of $4,000 or 30% of the sales price. To qualify for this credit, there are adjusted gross income limitations as below.

Single – $150,000

Married filing joint – $300,000

Head of household – $225,000

To be eligible under the Inflation Reduction Act, the qualifying vehicle must be purchased after August 16, 2022. Visit this link to see if your new vehicle is eligible – https://afdc.energy.gov/laws/inflation-reduction-act.  If you were in a binding contract to purchase a qualifying clean vehicle and did not take possession of the vehicle until after […]

By |October 4th, 2022|Categories: BCo Community News, Individual Tax, IRS|Comments Off on Inflation Reduction Act of 2022: Clean Vehicle Energy Credit

IRS Provides Broad Penalty Relief For Some 2019 and 2020 Returns

 

The IRS on August 23, 2022, announced it will grant automatic penalty relief for late-file penalties imposed with respect to certain returns required to be filed for the 2019 and 2020 tax years.

Notice 2022-36 provides systemic penalty relief to taxpayers for certain civil penalties related to 2019 and 2020 returns. Penalty relief is automatic so eligible taxpayers need not apply for it. If penalties have already been paid, the taxpayer will receive a credit or refund. However, the IRS has not yet announced if or when it will notify eligible taxpayers that it has waived their preexisting penalties pursuant to this announcement.

However, it is critical to note that some of these automatic penalty waivers are available only if a taxpayer files its delinquent returns on or before September 30, […]

By |August 29th, 2022|Categories: BCo Community News|Comments Off on IRS Provides Broad Penalty Relief For Some 2019 and 2020 Returns

Inflation Reduction Act Becomes Law

 

President Biden signed the Inflation Reduction Act into law at a White House ceremony on August 16, finalizing legislation intended to address inflation by paying down the national debt, lower consumer energy costs, provide incentives for the production of clean energy and reduce healthcare costs.

The bill moved through the legislative process in near-record time, having been first introduced by Sens. Chuck Schumer (D-NY) and Joe Manchin (D-WV) on July 27.  With the 50-50 Senate, summer recess, and approaching mid-term elections, the path to passage by both houses of Congress was not a certainty.

The act is expected to raise roughly $450 billion through new tax provisions, including a 15% minimum book tax on certain large corporations, a 1% excise tax on corporate stock buybacks, and a two-year extension of section 461(l) […]

By |August 22nd, 2022|Categories: BCo Community News|Comments Off on Inflation Reduction Act Becomes Law

Interview with Jeff Belingheri – Path to Partner

 

It’s summer and this means more to those who work in the accounting industry.  This is the time between the two busiest seasons for us at B+Co.  It is time for us to not only meet with our clients to provide consultation and planning, but to also do the things we love outside of work.  Work/life balance is not just an ideal, but a reality for the B+Co team.  Jeff Belingheri, Managing Partner in Novato, reminds us of the importance of self-care while striving to be your best professionally.  He has been a Partner with Bregante since 1996 and his leadership is without comparison.

Tell us your story and how you decided on a career in accounting.

I went to Cal Poly San Luis Obispo with the intent to study architecture, but […]

By |July 22nd, 2022|Categories: BCo Community News|Comments Off on Interview with Jeff Belingheri – Path to Partner

Owning Investment Real Estate through Single Member LLCs

 

Over the years, Single Member LLCs (SMLLCs) have grown in popularity among investors and business owners because under the so-called check-the-box regulations, you can generally ignore the existence of a SMLLC for federal tax purposes.  When you choose to not treat a SMLLC as a corporation for federal income tax purposes, the entity is disregarded (i.e., it’s a “nothing” for federal income tax purposes).  The federal income tax treatment of a disregarded SMLLC is relatively simple because its activities are considered to be conducted directly by the SMLLC’s sole member (owner).  For instance, when an individual uses a disregarded SMLLC to own rental real estate, the rental activity is reported on Schedule E of Form 1040.  There is no need to file a separate federal income tax return for the […]

By |July 1st, 2022|Categories: BCo Community News, Business Operations, Business Tax|Comments Off on Owning Investment Real Estate through Single Member LLCs
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