Can I write off a vehicle purchase?

Business Tax

Can I write off a vehicle purchase?

Sep 20, 2021 by Ed Babitzke 0 Comments

BUSINESS EXPENSES: Can I write off a vehicle purchase?

This is just an overview of the question. For more detailed explanation see the publications below.

If you have a business, you need to be familiar with the rules for business expenses. I am a simple guy and don’t do will with legal speak. Everything you need is in the US Code Section 26. However, the IRS has publications that explain the code sections in plain English. You can’t use a publication as a legal reference or defense. You can use it to understand what is allowed.

These publications for IRS.GOV are the ones I go to when explaining business expenses. I highly recommend reading them:

Publication 334 – Tax Guide for Small Business

Publication 535 – Business Expenses

Publication 463 – Travel, Gift, and Car Expense

Publication 946 – How to Depreciate Property

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Tax Breaks

Principal Residence Gain Exclusion Break

Sep 6, 2021 by Ed Babitzke 0 Comments , ,

The $250,000 ($500,000, if married) home sale gain exclusion break is one of the great tax-saving opportunities.

Unmarried homeowners can potentially exclude gains up to $250,000, and married homeowners can potentially exclude up to $500,000. You as the seller need not complete any special tax form to take advantage.

To take full advantage of the principal residence gain exclusion break, you must pass two tests: the ownership test and the use test.

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News

Changes to IRS mail boxes

Aug 21, 2021 by Ed Babitzke 0 Comments

Received an update from the IRS.

The IRS is closing several individual payment P.O. boxes (or lockbox addresses) in the San Francisco, Calif., and Hartford, Conn., areas beginning Jan. 1, 2022. Payments mailed to these closed payment locations after Jan. 1 will be returned to sender. To help ensure timely receipt, encourage your clients to avoid mailing to these closing addresses. Check Where to File on IRS.gov for active addresses before mailing payments. If you or your client receive an IRS payment letter, send payment to the address found in the letter. The IRS also encourages taxpayers to use IRS Direct Pay. It’s a fast, secure and easy way to pay a tax bill or estimated tax payment directly from a checking or savings account. Users receive instant confirmation that their payment has been made. For more information, see Publication 3891, Lockbox Addresses for 2021.

If you need assistance dealing with the IRS call me 712-274-3469.