IRS – Bregante+Company LLP

Qualified Charitable Distributions Allow Eligible IRA Owners Up To $100,000 In Tax-Free Gifts To Charity

On November 17, 2023, the Internal Revenue Service reminded individual retirement arrangement (IRA) owners age 70½ or over that they can transfer up to $100,000 to charity tax-free each year.

These transfers, known as qualified charitable distributions or QCDs, offer eligible older Americans a great way to easily give to charity before the end of the year. And, for those who are at least 73 years old, QCDs count toward the IRA owner’s required minimum distribution (RMD) for the year.

How to set up a QCD

Any IRA owner who wishes to make a QCD for 2023 should contact their IRA trustee soon so the trustee will have time to complete the transaction before the end of the year.

Normally, distributions from a traditional IRA are taxable when received. With a QCD, however, these […]

By BCo Author|November 20th, 2023|Categories: IRS, Retirement Planning|Comments Off

IRS Provides Tax Inflation Adjustments for Tax Year 2024

On November 9, 2023, the Internal Revenue Service announced the annual inflation adjustments for more than 60 tax provisions for tax year 2024, including the tax rate schedules and other tax changes. Revenue Procedure 2023-34 provides detailed information about these annual adjustments.

New for 2024

Starting in calendar year 2023, the Inflation Reduction Act reinstates the Hazardous Substance Superfund financing rate for crude oil received at U.S. refineries, and petroleum products that entered into the United States for consumption, use or warehousing. The tax rate is the sum of the Hazardous Substance Superfund rate and the Oil Spill Liability Trust Fund financing rate. For calendar years beginning in 2024, the Hazardous Substance Superfund financing rate is adjusted for inflation. For calendar year 2024 crude oil or petroleum products entered after […]

By BCo Author|November 15th, 2023|Categories: IRS|Comments Off

IRS Doubles Down on Substantiation of Health and Dependent Care Expenses

The IRS recently cautioned employers that the tax-free status of all benefits provided under their Internal Revenue Code (IRC) Section 125 cafeteria plan could be lost if employees are allowed to self-certify or use shortcut methods to substantiate reimbursable expenses.

Failure of the substantiation requirements for any plan benefit causes the amount of all benefits elected by employees under the Section 125 plan to be includible in every employee’s taxable wage income reported in Boxes 1, 3 and 5 of Form W-2 and subject to income and employment tax withholding. Plus, the employer must pay its share of Social Security and Medicare taxes on such amounts. The primary cafeteria plan benefits that require substantiation are health insurance premiums, health flexible spending accounts (FSAs) and dependent care (FSAs). Failures in any of […]

By BCo Author|July 25th, 2023|Categories: BCo Community News, IRS|Comments Off

Planning to Deduct for Losses this Tax Season? Be Sure to Read the Fine Print.

Deducting losses is a high-priority item for taxpayers in the highest marginal income tax bracket. The topic will be especially relevant during the 2022 tax compliance season because of recent declines in the stock market and a challenging overall business environment.

With that said, you shouldn’t assume that every business operating loss or capital loss on investments will lead to a 1:1 deduction on your tax return. There are significant limitations and qualifications surrounding these losses, so it’s critical to understand the details.

In this article, we provide a primer on some of the loss limitations that are most likely to affect high income taxpayers during the upcoming tax filing season.

Not All Business Losses Are Tax Deductible

Rising interest rates and other effects of surging inflation have created a challenging environment across industries. […]

By BCo Author|March 15th, 2023|Categories: Business Operations, Business Tax, IRS|Comments Off

The IRS Standard Mileage Rate Increases Continue in 2023

With gas prices reaching record highs during 2022, the IRS adjusted mileage rates to provide some relief for miles driven for the following purposes: business, medical, and/or charity.

At the launch of 2023, the IRS increased the standard mileage rates as follows:

Business miles – From 62.5 cents per mile (effective 7/1/22) to 65.5 cents per business mile driven.

The following to note, but remains unchanged from the IRS update made effective 7/1/22:

Medical – 22 cents per mile driven for medical or moving purposes (moving purposes only for qualified active-duty members of the Armed Forces)
Charitable – 14 cents per mile driven in service of charitable organizations

- Reminders to our clients:
  - There is always the option of calculating actual costs rather than using the standard mileage rates.
  - Leased […]

By Mike Ruiz Murillo|January 11th, 2023|Categories: Announcements, Business Operations, IRS|Comments Off