July highlights from The MWE Advisor: Midyear tax planning strategies for individuals to consider in light of recent tax-law changes; An overview of the treatment of hobby vs. for-profit business activities under current tax law; Clarification on the rules for deducting losses incurred in 2019 and 2020.
Midyear Tax Planning Ideas for Individuals
So far, 2020 has been a tumultuous year for many people. What can you do today to possibly lower your federal income tax obligations for 2020? Here are some mid-year tax planning strategies for individual taxpayers to consider in light of recent tax-law changes, current events and potential future events. Read More
Hobby or Business? How to Treat COVID-19 Sideline Activities for Taxes
Thanks to the Internet and mobile technology, many people engage in unincorporated sideline activities outside their regular day jobs. This trend has accelerated during the pandemic, as under-employed people seek alternative ways to generate income. Here’s an overview of the treatment of hobby vs. for-profit business activities under current tax law, including why it’s advantageous to qualify as a for-profit business and how to distinguish between the two types of activities. Read More
Demystifying Casualty Loss Deductions
From hurricanes and wildfires to COVID-19 and vandalism, threats to personal and business property abound. Unfortunately, recent changes to the federal tax rules for deducting casualty losses have caused some confusion. This article clarifies the rules for deducting losses incurred in 2019 and 2020. Some individual taxpayers may be disappointed to discover that their tax relief is severely limited under current law. But there’s welcome relief for businesses that incur losses. Read More