- Form 4684: How to Claim a Casualty and Theft Loss Deduction
Form 4684 allows individuals, businesses and estates to claim deductions against any unexpected losses due to theft or disasters. These deductions can help reduce taxable income, but they come with specific eligibility requirements and limitations. In most cases, only losses caused by federally declared disasters or qualified thefts can be deducted. A financial advisor can… read more…
- How Does Tax-Exempt Interest Income Affect FAFSA?
Eligibility for federal student financial aid is primarily based on income as reported for tax purposes. However, tax-exempt interest income can impact a student’s financial aid eligibility. Interest earned from municipal bonds is an example of this type of income. Although this income is not subject to federal income tax, it is included as part… read more…
- Are There Tax Benefits of Leasing a Car vs. Buying a Car?
When deciding whether to lease or buy a car, you should look beyond monthly payments and interest rates to make a decision. One major factor that often gets overlooked is how each option impacts your taxes. Depending on your situation, leasing a car versus buying one could offer distinct tax advantages, particularly for those who… read more…
- Form 8829: How to Deduct Expenses for Home Business Uses
Form 8829 is used to claim the home office deduction by calculating the business-related portion of home expenses. Self-employed individuals and freelancers can deduct costs such as rent, utilities and depreciation if they use a designated space exclusively for work. However, the IRS sets specific guidelines for eligibility, including regular and exclusive business use of… read more…
- Are Exempt-Interest Dividends Subject to AMT?
Exempt-interest dividends, typically distributed by municipal bond funds, are generally not subject to federal income tax, but they can be impacted by the alternative minimum tax (AMT). Certain private activity bonds, which fund projects like sports stadiums or private airports, generate income that remains tax-exempt under regular tax rules but is includable in AMT calculations.… read more…
- How Does the AMT Affect Your Standard Deduction?
The alternative minimum tax (AMT) can reduce or eliminate the benefit of the standard deduction for certain taxpayers, particularly those with higher incomes or specific types of tax-preference items. Unlike the regular tax system, which allows a standard deduction to lower taxable income, the AMT calculation follows a separate set of rules that disallows this… read more…
- How to Use the Foreign Tax Credit to Offset AMT
The foreign tax credit can help mitigate the impact of the alternative minimum tax (AMT) for taxpayers with income taxed abroad. While the AMT limits certain deductions and credits, it does allow a portion of the foreign tax credit to reduce U.S. tax liability. However, specific rules govern how much of the credit applies, including… read more…
- New Jersey Corporate Tax: What It Is and How It Works
New Jersey applies a graduated corporation business tax (CBT) on corporations, with rates that vary based on income. Recent law changes have added extra fees for some corporations, affecting their total tax costs. Due to these complexities, working with a financial advisor can help businesses stay compliant and find tax-saving opportunities. What Is the New… read more…
- How Are Partnerships Taxed? Step-By-Step Guide
Partnerships are not subject to income tax at the entity level. Instead, they operate as pass-through entities, meaning the partnership’s income, deductions and credits flow directly to the individual partners. Each partner then reports their share of the partnership’s income or loss on their personal tax return. A financial advisor can help partners structure their… read more…
- Section 1250: How It Applies to Real Estate Taxes and Examples
Section 1250 of the U.S. tax code applies to gains from the sale of depreciated business real estate. If a property was depreciated beyond the straight-line method, the extra depreciation is taxed at a higher rate, known as depreciation recapture. Because real estate taxes can be complex, a financial advisor can help investors plan tax-efficient… read more…
- What Triggers the Alternative Minimum Tax (AMT)?
The alternative minimum tax (AMT) is designed to ensure that certain taxpayers who benefit from various deductions and tax preferences still pay a minimum level of tax. Several factors can trigger AMT liability, including high income, large deductions and financial activities that create differences between regular taxable income and the income calculated under the AMT… read more…
- How to Calculate the Alternative Minimum Tax (AMT)
The alternative minimum tax (AMT) calculation determines whether a taxpayer must pay an additional amount beyond their regular income tax liability. To calculate AMT, taxable income is adjusted by adding back certain deductions to determine alternative minimum taxable income (AMTI). An exemption is then applied, though it phases out at higher income levels. After subtracting… read more…
- Average Itemized Deductions in Some States Reach Over $50k. Are You Getting the Most Out of Your Tax Return?
Should you itemize your taxes? Most taxpayers take the standard each year. The Tax Policy Center estimates that only about 10% of households itemize their taxes. This is in large part because the standard deduction is $15,000 per person for individual filers ($30,000 combined for married households). That makes it large enough that, in most cases,… read more…
- Guide to Tax Deductions for Homeowners in 2025
Owning a home comes with costs, but it also provides tax benefits that can lower your taxable income. For those filing taxes in 2025, deductions like mortgage interest and home office expenses have become more relevant with the rise of remote work. Some tax benefits have been long established, while others now apply to changing… read more…
- California Corporate Tax: What It Is and How It Works
California has a high corporate tax rate and strict rules, but its large market and strong economy can benefit some businesses. Companies incorporated or operating in the Golden Gate state should understand the tax rate, how it applies and the filing process. A financial advisor can help with specific tax planning needs. What Is the… read more…
- Delaware Corporate Tax: What It Is and How It Works
Delaware is a popular state for corporations because it offers business-friendly laws, a specialized court for corporate cases and tax advantages for companies operating outside the state. For businesses incorporated or operating within the state, it’s important to understand the Delaware corporate tax rate, its application and the process for filing corporate taxes. A financial… read more…
- NJ Mansion Tax: Who Pays It, How to Avoid It
New Jersey imposes a mansion tax on real estate transactions that exceed $1 million. This 1% levy applies to residential and certain commercial properties, adding a significant cost for high-value buyers. The tax is typically paid by the purchaser at closing, though exemptions and legal strategies may help reduce or eliminate the obligation. Buyers looking… read more…
- Illinois Corporate Tax: What It Is and How It Works
The Illinois corporate tax rate applies to certain businesses operating in the state and consists of a flat income tax rate and a separate personal property replacement tax. As of 2025, the corporate income tax rate in Illinois stands at a total of 9.5% and applies to C corporations. While Illinois has one of the… read more…
- What Are the Tax Benefits of an LLC for Rental Properties?
When you have valuable assets, significant costs or debt, or the possibility of someone getting hurt, a limited liability company (LLC) could help shield you from liability. Additionally, it can also help you with your taxes. For property owners, this business structure is commonly used to organize rental properties into separate LLCs with the goals… read more…
- New York Mansion Tax: Overview, Exemptions, How to Avoid
The New York mansion tax, which is applied to real estate transactions that exceed specific price thresholds, can add significant costs. Understanding how it works, who is subject to it, and what types of exemptions exist is key to navigating New York’s high-value real estate market. Whether you’re purchasing a luxury home or considering an… read more…
- California Mansion Tax: Overview, Exemptions, How to Avoid
California is known for its high property values. And in some parts of the state, like Los Angeles, high-value property owners now face additional financial considerations with a mansion tax. Officially known as the Measure ULA, or the United to House L.A. proposition, it primarily impacts high-end property sales by adding a levy on transactions… read more…
- Mansion Tax: What It Is, Who Pays It, How to Avoid It
Buying high-value real estate often comes with additional costs, including the mansion tax. This tax is applied when a residential property exceeds a specific price threshold. It is typically set at $1 million or higher. The term “mansion tax” can be misleading as it applies based on property value rather than size or luxury level.… read more…
- Do Amended Tax Returns Raise Red Flags or Trigger an Audit?
Taxpayers typically amend their returns to correct mistakes, claim missed deductions or report additional income. While the IRS does allow amendments, many worry that filing a Form 1040-X could increase their chances of an audit. Since tax laws are complex, making an error when amending a return could lead to further issues. A financial advisor… read more…
- Are Union Dues Tax-Deductible?
The Tax Cuts and Jobs Act (TCJA) of 2017 eliminated the federal tax deduction for union dues from 2018 through 2025. However, certain states, such as New York, allow union members to deduct these dues on their state income tax returns. Union members should consult a tax professional to understand their specific state laws so… read more…
- Will I Be Getting a $5,000 DOGE Tax Refund? Does It Make Sense to Wait to File My Taxes?
Are you due for a DOGE tax refund? Not yet. On Thursday, the Trump Administration made news when President Donald Trump and Elon Musk publicly discussed the idea of a tax break funded by cuts to government spending. The idea, which reportedly started as a post on X (formerly Twitter), is to issue a tax… read more…