The 2017 Tax Cuts and Jobs Act (TCJA) made significant changes to the business meals and entertainment deduction starting in 2018. On October 3, 2018, the Internal Revenue Service (IRS) issued guidance on the business expense deduction for meals and entertainment as a follow up to the TCJA. This guidance was in response to confusion regarding the clarity of the changes made by the TCJA. We now have a much clearer picture of what is and isn't considered deductible and to what extent.
During the holiday season, we tend to be thinking about those who may not be as fortunate or who have a hard time making ends meet this time of year. We open our checkbooks and donate money to charities. We purchase toys for those families that may not have the means to buy gifts to put under the tree. We pack up our gently used items and give them to organizations that distribute or sell them to those in need. There are many benefits associated with charitable giving, lower blood pressure, depression, stress level, to name a few. Many of these benefits will coincidentally help us get through the stress of the holiday season. However, with the right planning some might help you get through tax season.
With the holiday season behind us and tax season upon us, the following is an overview of six different charitable contributions and how to reap their tax benefits.
Many of us use our personal vehicle for business purposes to one extent or the other. This doesn't seem fair since the added miles can reduce the value of your vehicle and reduce your equity, not to mention other associated costs you might pay for out of pocket. Because of this, the Internal Revenue Service (IRS) allows taxpayers to recover the costs associated with the business use of a vehicle. We'll discuss the two methods of recovering the costs associated with the business use of a vehicle.