2 results for tag: Tax Benefits


2023 Last-Minute Vehicle Purchases to Save on Taxes

Questions: Do you need a replacement business car, SUV, van, or pickup truck? Do you need tax deductions this year? Do you need a tax credit to offset what you owe to the IRS? If you answered yes to any of these questions, you need to examine this article and get ready to smile. Thanks to the Tax Cuts and Jobs Act (TCJA), you can write off the full business cost of certain vehicles, 89 percent of other vehicles, and up $20,200 for other vehicles. If you plan on purchasing an electric vehicle or a plug-in hybrid electric vehicle, you may qualify for a tax credit of up to $7,500. Get the Timing Right Don’t procrastinate. If you ...

Hobby Loss Rule Raises Its Ugly Head

You could run into the ugly hobby loss rule if you have an activity that creates a tax loss. Why “ugly”? Because you could lose all your deductions and pay taxes on the income. Example: Your activity income is $200,000, and expenses are $350,000. If the hobby loss rules apply, you could pay taxes on $200,000 of income. Think of it: You lost $150,000 on the hobby—cash out of pocket ($350,000 - $200,000). And now, because of the rules, you pay taxes on $200,000 of income. Yep, that’s ugly. Know This: The ugly hobby loss rule applies to all taxpayers. Mary Kay consultants have suffered. Amway distributors have suffered. ...