If you’re freelancing, whether full-time, part-time, or as a side hustle, you already know how  much freedom and flexibility it can offer. But when tax time rolls around, that same freedom  can bring confusion and frustration, especially when it comes to figuring out what’s deductible  and what’s not. It’s common to see missed opportunities for tax savings. Many people are  surprised by what they could have deducted if they had known earlier or if they weren’t afraid  of “raising red flags.” So, let’s clear the air and make sure you’re not leaving money on the table.

As businesses and investors navigate the evolving landscape of clean energy incentives, understanding  the latest developments in Investment Tax Credits (ITCs) and Production Tax Credits (PTCs) is crucial.  These Renewable Energy Tax Credits (RETCs) encourage investment in sustainable infrastructure by  offering financial incentives for renewable energy projects. The Inflation Reduction Act of 2022 extended  and restructured these credits, tying their availability to emissions reduction targets rather than fixed  expiration dates. However, recent shifts in federal leadership have raised questions about the long-term  stability of these incentives. While the fundamental structure of RETCs remains intact, potential policy  changes could influence how businesses and investors utilize these tax benefits. Given recent legislative  and administrative shifts, it is important to examine how these credits function, their benefits, and what  potential regulatory changes may mean for your business.

Have you ever discovered a great tax strategy that you could have used in previous years, but  missed the opportunity? Or, even worse, realized after the fact that you were eligible for a  credit, but it wasn’t included on your return? Maybe you even ended up making unnecessary  estimated tax payments because of it. The good news is, it might not be too late to correct that  and get back what you’re owed. 

Just because a tax return has already been filed doesn’t mean the door is closed. The IRS gives  taxpayers a specific window to claim credits and refunds they may have overlooked. The  deadline for making these claims is known as the Refund Statute Expiration Date (RSED)—a bit  of a mouthful, but understanding it could mean money back in your pocket.

If you’re planning to sell investment real estate, you might be bracing yourself for a big tax bill.  It’s a common assumption: you sell the property, you pay the capital gains tax, and you move  on. But in reality, you have more options than you might think. While many are familiar with the  Section 1031 exchange—a great tool if you’re planning to reinvest in similar property—it’s not  your only path to deferring or eliminating taxes. In fact, there are several strategies that can  work just as well, or even better, depending on your goals.

With ongoing political shifts, the future of electric vehicle credits remains uncertain, making it crucial for you to understand how and when you might still take advantage of it. Given the potential for changes, timing your EV purchase wisely could help you maximize available savings. 

The EV tax credit has long been a tool to encourage clean energy adoption, but its future is increasingly tied to political debates in Washington. Some lawmakers and industry advocates continue to push for strong incentives, arguing that EVs are vital in reducing emissions and lowering fuel costs for consumers. However, other political factions have signaled their intent to scale back or even eliminate federal support for EV buyers. With a new presidential administration already making moves and shifts in congressional priorities, the structure of this credit could change—potentially as early as next year. Still, even with uncertainty, the credit remains in place for now, making this a potentially opportune moment to act. 

What Every Business Owner Should Know 

Navigating the complexities of tax obligations is an essential responsibility for business owners, particularly those operating as S-Corporations. There is a trend beginning to emerge among some business owners of converting to an S-Corp to try and avoid self-employment tax. While the promise of reduced tax liability through this structure is enticing, it often comes with misunderstood or overlooked requirements that can lead to severe financial consequences. Among these is the obligation to responsibly manage payroll taxes and comply with IRS regulations, a task that, if neglected, can result in the imposition of the Trust Fund Recovery Penalty (TFRP). To avoid this costly penalty, it is essential to understand the potential pitfalls of this structure and provide actionable strategies to safeguard your business against costly penalties and operational disruptions.

Facing a significant federal tax bill can feel overwhelming, and it's completely  understandable to be concerned about the impact it can have on your finances.  However, it’s important to know that you're not alone in navigating this challenging  situation. There are strategies and options available to alleviate the burden and get you  through the process with confidence and clarity. There are several ways you can  proceed – but it’s important to be mindful of the process as you do.

Virtually everyone thinks of turning 70 as a major life milestone, but turning 70 ½ is actually  a milestone of its own because it opens a unique opportunity in the tax code that can  significantly enhance your charitable giving strategy -- using your Individual Retirement  Accounts (IRAs). If you don't need all the money in your IRAs for living expenses, these  accounts can effectively function like donor-advised funds, offering substantial tax  advantages. Below is an exploration of how you could potentially leverage this provision to  maximize both your charitable impact and tax benefits. 

With the average college graduate carrying nearly $29,000 in student loan debt and the  cost of education steadily rising, families are under pressure to find ways to manage the  cost of higher education. While financial aid, loans, and scholarships play a key role, the  U.S. tax code offers some powerful tools that can provide relief, including two valuable  federal tax credits that are designed to help reduce the cost of higher education: the  American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). It’s  important to understand how these tax credits work and how you can benefit from them.

Navigating the complexities of tax planning and business structuring to safeguard your  business strategy from IRS scrutiny can seem like a chess match. It can  be tempting for some business owners to try and find ways around the system to  maximize their own benefit, but the IRS is familiar with many of these strategies, and often the consequences are not worth any potential short term benefit you may find. 

With advances in technology, there are more opportunities to find gigs and be your own boss. Whether you are doing odd jobs on an app like TaskRabbit, driving for Lyft, or renting out your home or car, that additional income comes with additional tax responsibilities.  The IRS wants their share of the income you earned, but what are the expectations for compliance in the gig economy?